Key message: Think strategically and plan long term. Read the news but don’t let it dictate your trades. Carefully analyze business trends and anticipate what the market will be in great need of for the next 2, 5, 10 and 20 years.
R. Scott Raynovich, Editor in Chief, Investor Uprising
From Peter Lynch’s 1993 book, Beating the Street:
When we make the mistake of letting the news out of the bag, we are confronted with the latest reasons that mankind is doomed: global warming, global cooling, the evil Soviet empire, the collapse of the evil Soviet empire, recession, inflation, illiteracy, the high cost of health care, fundamentalist Muslims, the budget deficit, the brain drain, tribal warfare, organized crime, disorganized crime, sex scandals, money scandals, sex and money scandals.
This passage entertains me, not only because it is well written, but because so many of the same worries persist in 2011.
What’s the moral of the story? Simple. You can’t possibly predict what will happen, so stop fooling yourself. What is happening on the television right now will most likely have little influence on the market in five years — or maybe even in five months. So turn off the TV, and go find an interesting business opportunity or investment. That’s where the real work is done.