Most of what you learned about investing is probably wrong

Interesting article:

http://www.fortunefinancialadvisors.com/blog/most-of-what-you-probably-think-about-investing-is-wrong

Sample of the findings:

Buying stocks trading at 52-week lows is not smarter than buying stocks trading at 52-week highs:

Similar to investors not wanting to buy equities when market indices are at all-time highs, many investors are extremely reluctant to buy stocks that are trading at or around 52-week highs.  The thinking, of course, is the same:  if one buys at the yearly high, he or she is simply setting him- or herself up for disappointment.  However, as the brilliant research team at Alpha Architect points out, this ignores two crucial factors:  momentum, which in the simplest terms means that stocks that are rising tend to keep rising, and stocks that are down tend to keep going down; and the bias of technical (i.e. price action) over fundamental concerns (e.g. the valuation of the company).  The Alpha Architect folks sum up the issue thusly:

It goes on to point out that higher risk doesn't necessarily result in higher reward.

Investment?

Original post:  Oct 15, 2013

One of the materials managers at yesterday's meeting shared an anecdote with us. He has a fairly large staff. When he went through the training records going back over a dozen years, he noticed something strange. The file was empty. It turns out that none of the staff had ever had any outside training.

He decided to go over to Human Resources to secure funding for the training. The HR director asked, "What if we train them and they leave?"

"What if we don't and they stay?"