Investment Fables by Aswath Damodaran

  1. High dividends do not a bond make.
  2. A stock that trades at a low PE is not always cheap, and the long term can be a time coming
  3. The book value is an opinion and not a fact
  4. No downside, no upside
  5. When you are considered the best, very good is not good enough
  6. Growth often comes with a hefty price tag
  7. The crowd is more often right than wrong
  8. A bargain can sometimes be very expensive
  9. Slow and steady beats growth in haste
  10. If you see easy money to be made in the stock market, you have not looked hard enough
  11. You live by the crowd, you will die by it
  12. Smart people don’t always pick good stocks
  13. Stocks don’t always win in the long term


  14. Be wary of complex, fancifully named investment strategies that claim to be new and different
  15. The only predictable thing about stocks is their unpredictability
  16. If you cannot see the risk in a high return strategy, you just have not looked hard enough
  17. Ignore fundamentals at your peril
  18. Cheap companies are not always good bargains
  19. Good companies may not be good investments, it’s about the price
  20. Numbers can lie
  21. Markets are more often right than wrong, respect it
  22. There is no one best investment strategy that fits all investors
  23. It pays to be lucky

~ by antinomian on July 15, 2007.

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