This chapter discusses the potential consequences of focusing solely on short-term gains in the stock market and emphasizes the importance of considering a company's long-term prospects. It also debates the reasons behind high turnover of stocks and explores the possibility of investors fooling themselves into thinking they know more than they do.
Here at the Motley Fool, we like our individual stocks. But – what if we’re wrong?
Jonathan Berk is a professor of finance at the Stanford Graduate School of Business and co-host of the podcast “All Else Equal: Making Better Decisions.” Ricky Mulvey caught up with Berk to discuss – and debate – the merits of individual stock investing. They also talk about:
- The ripple effects of decision-making,
- Whether short-term investing deserves its bad reputation,
- And the time horizon needed to differentiate between luck and skill.
Tickers discussed: CMG, NFLX, NVDA, MCD
Host: Ricky Mulvey
Guest: Jonathan Berk
Producer: Mary Long
Engineer: Rick Engdahl
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