With gold holding near the $1,670 level, today the Godfather of newsletter writers, Richard Russell, starts off with a quote from legendary trader Jesse Livermore and goes on to discuss what is happening in gold and stock markets: “A loss never bothers me after I take it.” Jesse Livermore.
Richard Russell continues:
“Wise words from Jesse Livermore except for one thing. Losses to me are experiential lessons. I always look at my losses and then ask, ‘What have I learned?’ If I've learned something valuable, I don't consider it a loss. I take it as a lesson or an insight into my character — laziness, greed, stupidity, impatience. I've often said that the stock market is a great teacher, that is, if you are humble enough to learn from your mistakes or losses.
I was looking over the quarterly report of Tri-Continental Corp. I think this was the first closed-end fund, founded in the 1920s prior to the '29 crash. I don't know what TY sold for in July 1932, but in 1940 with the Dow at a price of 98 you could have bought TY at around 2.
Buyers at that time merely had to load up on the fund and hold it, and they would be rich today. The fund's assets are now near two billion. I looked up their holdings of Apple; they hold 80,800 shares. That shows you how huge some of these funds are, and the great buying power they possess.
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