classic investment strategy

The Giants Who Came Before Us

© Can Stock Photo / kryzhov

 The work of Roger Babson contains countless worthwhile nuggets. He was a Wall Street pioneer a century ago, creator of the first investment research service, and philanthropist of note. A keen observer of business, the markets and the economy, and an original thinker, his words ring true today.

We see applications to the world of investing. For example:

“Experience has taught me that there is one chief reason why some people succeed and others fail. The difference is not one of knowing, but of doing. So far as success can be reduced to a formula, it consists of this: doing what you know you should do.

Thoughtful people understand the sentiment behind the old saying, ‘buy low, sell high.’ It has become a cliché. Yet in tumultuous and uncertain times when pessimism rules and stock prices have fallen, many people have trouble with step one: buying low. It turns out to be very difficult in practice.

We’ve also had conversations in the tough times with people who say “I know selling out now is the wrong thing to do, but that is what I want to do.” Clearly, this is a case of knowing what you should do—and doing the opposite! We illustrated how costly that can be here.

Without knowing Babson’s Rule, we have spent many years working to find or train investment clients who would do what they know they should do. You, our clients, are the best. We believe our efforts have been good for you-–and for us.

We will keep on working to find good opportunities, avoid threats where we can, and cultivate effective attitudes about investing—helping you do what you know you should do. If you would like to discuss your situation in detail, please write or call.


Securities offered through LPL Financial, Member FINRA/SIPC.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Stock investing involves risk including loss of principal.