Henry Clouzot. The study of stock market

Henry Clouzot. The study of stock market

Like many other successful investors, Henry Clouzot is known for his extravagance. For example, he announced he would hold for their clients deal in stocks and bonds for half the price compared to other firms (ie, offered discount brokerage services much sooner, "Fidelity" or Charles Schwab). At that time it was considered outrageous act. "It was such a bomb in the camp of those old freaks - he wrote - that they were almost paralyzed." However Clouseauhas been doing what was considered radical in its time to break into the environment of those old cranks. Materialistichesknya world of Wall Street bears no resemblance to his career, which he wanted for his parents - his career a person spiritual. This perspective is no longer necessary, when Clouseau, who was born in England in 1850, visited New York and was seduced the American way of life.

Clouzot started as a clerk at a big company-importer, and only later moved to the "financial sector business. Always ambitious, Clouseau and several of his friends on Wall Street opened a private bank. He then set his sights to become a member of the New York Stock Exchange, which has carried out shortly after the panic of 1857, during which prices have fallen about 50 percent. "This crisis has sounded for the funeral march of the old conservatism in the 'Street' - wrote Clouseau. - There was a young race" of financiers, to fill the seats of the old conservative leaders. " With All my extravagance Clouzot was an investor in the price. He understood that "the basis of all this tumultuous masses of" facts are laws of nature if we study their relative Mbl their control facilities, they (the laws) will be working as surely as the sunrise. "

In 1908, Clouzot published a book "Fifty Years in Wall, Street's" (Fifty Years «n Wa} J Street), which has become indispensable to every student of the history and markets, Eventually, Clouseau was standing shoulder to shoulder with such great "financiers like JP Morgan and the infamous robber barons such as Cornelius Vanderbilt. Clouseau took the time to write the story and their own thoughts, in roM those that want to succeed on Wall Street. He claimed that one of the problems faced by investors, it is their reluctance to "act in accordance with the conclusions that diverge from their desires ..." In the "Study" stock market "Clouseau listed the qualities that should have every investor.Vse that is worth doing is worth doing well. To do something well, you should thoroughly study the subject, not necessarily in the books, books, not counting the statement of principles, rather unimportant teacher.

Stock Market - a highly fruitful and fascinating area of ??study, attracting more influential and wealthy people than any other sphere of activity in American life. And, of course, the stock market a lot of research object. The reasons for the results of so many studies are not always commensurate with the effort and time used are numerous. Some of them are as follows. People have a preconceived view. They do not want to liberate their minds from the existing theories and force yourself to deal directly with the facts. They tend to base their conclusions on the opinions of others. Further, the opinion of the value of something is always different, but opinions differ on the future values ??even more, like spokes of a wheel apart the more the farther you are away from the center. Looking forward, you move away from the center of this. People usually do not want to act on the conclusions that are contrary to their wishes, and this includes taking immediate losses, they (people) look like a wounded man who refuses to allow the surgeon to cut off his leg when he was told that amputation is likely to save his life. They tend to study the surface, without care, using random and superficial knowledge, where even the most accurate information is hardly enough.

You can add other reasons, but it is not necessary. King forgave a municipality of a city, who could not give a salute in his honor, the very first hearing of the prepared him fifty good reasons - there was gunpowder. Others forty-nine remained a non-disclosure. So here was given enough reasons as to why so many people can not successfully learn the stock market.

Very easy to carry on part of various systems, ostensibly to ensure certain victory in the stock market, and to criticize the methods of study biased, but extremely difficult to establish the absolute rule of successful study of the market shares, there is only one immutable rule, but to abide by it, requires a large capital and a considerable patience. Here it is: buy only what you can pay, buy when low and sell when expensive. Because of this rule may see even the smallest financial infants.

But even this provision has its weak points, for example, how a person can be absolutely sure that this action is cheap or expensive at this time? You say over? But when he compares the price that was in any past period, it must specify all of the facts that occurred in that period and influenced by this action. These p can be in the thousands and scattered over all parts of the country, so our investigator a very difficult task. Then he has to make clear judgments and decisions such as what the soldiers do when the battery is charged, and he should be ready for the next day to find out what was wrong, after careful and exhaustive study of all available material he buys stock in, say, 60 percent of face value, that is cheap, and they do cost more money, and the next day you may find that they go to 50. In this case, he loses $ 10 on each share, but if he keep them and they will eventually, will advance to par, he will make a profit 40 cents, per share.

But suppose he sells in any given day at par, and a week later, the shares are sold at l l0, then he loses $ 40 per share. Thus, this "safe" road to success has its potholes, like the others, although they (the roads), not so dangerous. In such a way IET deadly traps. For people traveling on it, there is no temptation to commit embezzlement and suicide.

Horace Greeley once said that for the resumption of specie payments should resume specie payments, in the same way one can say that studying the stock ry, evaluations, one must study the stock market, and an outstanding one, as a rule, a successful stock operator of the period known to that received daily multiple news reports from various parts of the country about the state of the grain harvest, weather, cargo and passenger traffic, that is, all facts that may affect the status of railway undertakings. These individual "pieces" of information not available to the public - they are too expensive and require too much equipment. But the Bureau of Public Information is continuously sending data, and for the most part it is credible. This class of facts should be separated from simple gossip.

Hearing is usually uncertain and unreliable. It is like a cartoon that starts small and compact, but as we move more and becoming less definite in form, until, finally, does not grow like a monstrous cloud, which has neither form nor the sequence, and finally disappears, with no know how or where. Study the facts, as a rule, leads to the correct conclusions; and correct conclusions are pushing to the wise transactions.

For example, a large crop in the United States in 1891, together with the fact of poor harvests in Europe in the same year, led to the conclusion that increased demand for our grain for delivery abroad, and earnings of our railways will increase. The conclusions were correct, revenues actually increased, and savvy market researchers bought the shares based on their improvement. Then the fact that stocks have risen and continued to rise, coupled with the fact that the buyer now has a wide audience, and with the additional fact that the public prefers to act as a buyer and sell at high prices and not buy at all if the prices are low, pushed those same savvy researchers to sell the same shares as the prices are high, including the shares that they had, and the large number of shares which they had not. Once again, the study of facts leading to wise conclusions, and these findings resulted in a successful outcome. And the bulls and the bears, the wise scholars well-earned. Inattentive and superficial crowd, which appeared too late as the bulls came eventually to being forced to become reluctant sellers, with more or less loss, in some cases severe enough to disrupt the household and destroy people.

Thus, a person who learns the true value should not be content with this one. He must learn the facts, which at the time of stress and turmoil make assets that have intrinsic value, if not fluctuate in amount, then the manner as wildly as the most fantastic, securities, and he should know: no margin transactions are not truly safe if the margin does not exceed the usual size fluctuations and is not supported as large reserves. Some educators argue Finance: Risks should not exceed 25 percent of your capital. This excessive prudence, a man holding a half-mile from the edge of a cliff, never with him not to fall. Anyone who carefully studies the stock market, sooner or later realize that if he could pay half the market price of its securities, it does not need to worry especially about the other half, that is a reasonable choice of assets. There is no question about promotions, which in December sold at 72, and March 30. Anyone who buys such goods dolzhenoplatit them and set them aside, to let them stored for the same patient as a hen, broody.

The task of the researcher of the stock market in some periods did not quite simple. Sometimes the volume of imports is great, and exports - is small. We sell cotton to foreigners million a week and buy their coffee at two million per week, while cotton gives us a small profit, but coffee gives foreigners a huge profit. Other countries from time to time does not seem to prefer our corn grain from Russia and from the East, despite the fact that these foreign markets are amazing quality and good prices there, I'm afraid, only in the imagination of the supporters of free trade. In addition, the debt of corporations and individuals to act as a constant threat to the natural tendency of lending capital available useful enterprises.

Yet behind all this tumultuous mass of facts are laws of nature if we study them with respect to their control facilities, these laws will be working as surely as the sunrise. The collapse of the monstrous combination of coal, as brutal as the rise in the water or air, the result of natural laws, and these same laws at work today, and the facts are always with us. Cause people to find their diligent and get on their profits.