Investing - Don't be Driven by Short Term Sentiment and Emotion
One of the most common fears holding an investor back from achieving a great return is a misunderstanding of what happens when markets fall.
To use fear to our advantage, we would be well served to seek to understand the following three principles around shares and their value:
- A share is simply a small slice of company ownership;
- A company’s value ultimately depends on its present and future potential cash flows;
- Value may not always equal price.
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