About Those Predictions….

The financial media is full of predictions for the year ahead. Most particularly, they seem interested in where people think the Dow will be at the end of next year.

Let me strongly urge readers to not take these guessing games too seriously. At the level of a parlor game, I suppose they can be fun. But the best part about our strategy of investing is that you don’t have to be able to predict anything. Nor do you have to be an expert on Fed policy or the euro crises.

What we specialize in is very, very, very low-risk predictions. For example, I predict that in one year’s time Bed Bath & Beyond ($BBBY) will continue to be a well-run company. True, it’s not a sexy prediction and it’s not guaranteed to make us money, but it’s still pretty important. Not all companies can say that.

Remember that the goal isn’t about being a perfect predictor, it’s about being a good investor. In a world where we can’t predict much, I place great emphasis on those things I can rely on. Keep that in mind when you go about investing.

Posted by on December 17th, 2012 at 11:01 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.