Wednesday, January 21, 2009

Some thoughts about picking a bottom

At Realmoney, Jim Cramer is picking on Warren Buffet, saying Mr. Buffet is down 50% on GS, GE. A lesson we as small investors should all remember: NEVER pick a bottom! Even a great investor like Warren Buffet can't time the market. Maybe he picked the extreme of the fear, but the price has not hit the exact bottom. The price tends to lag or overshoot.

No comments: