We Investors Never Learn

$99SMART (5326.MY)$ Everyone always feels like a genius when the market is going up. The people who bought 99SMART at RM2 will say "99Speedmart is a great company, great management, few competitors, I trust my gut, etc etc" and the people who bought at RM2.50 will say the same thing.. and the people who buy at RM3.50 will say the same thing.

When you read the comments, its very easy to FOMO because everyone sounds like they know what they're doing. But just remember, this whole act will only continue as long as the stock price keeps rising. Once the music stops, and the valuations get pushed too high, the people who pumped up the price will escape while those who bought high will get burnt. This is how the stock market has always operated.

Yesterday I saw a comment by a young gentlemen who felt very proud with himself because he bought 99 Speedmart at RM3.60. He said people were trying to discourage him back then, but he continued to believe in the stock.. and now he is proven right. Posts like these show exactly why a lot of retail investors lose money in the stock market.

Everybody calls themselves a value investor on the surface.. but just ask a few basic questions (have they read the annual report, where does the company get their revenue from, what are the management's plans, do they have 5 consecutive years of profit growth).. and the answer becomes clear.

Thank you for reading. Goodluck all.

~ Dr Anonymous

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