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The Weekly Nibble: Are You Ready for the Next Stock Market Boom?

Photo credit: Eva K.. Licence: CC BY-SA 2.5

Here are some of the most interesting articles that have appeared in the Motley Fool Singapore’s website this week. Let’s dive straight in!

1. Three Books All Investors Must Read

Beginners who would like to start investing in the stock market may be inundated by the flurry of data out there.

To help sieve out the necessary information from the noise, books such as how to evaluate a company would help.

On that note, check out the post on three investment books that all investors must read.

2. Should We Be Worried When Companies Miss A Quarterly Estimate?

Sometimes, analysts release estimates of a company’s financial figures before the numbers are officially announced. These estimates could give an idea of what may lie ahead.

If the company’s financial performance falls short of the estimates, its share price could tank during trading hours. The reverse may be true as well.

But, should we care at all about those estimates? Estimates are just – estimates – aren’t they? Doesn’t the long-term performance of a company matter more than any short-term predictions?

3. ‘Dr Copper’ is Diagnosing a Global Share Price Boom

Dear Foolish investors, meet Dr Copper.

He “says” that the global economy is in the pink of health as demand for copper is picking up.

However, just like the quarterly earnings estimates, such diagnoses are merely forecasts.

And that is why Warren Buffett said the following:

“We’ve long felt that the only value of stock forecasters is to make fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.”

Instead of giving importance to forecasting, we should give weight to the economic characteristics of the business we are interested in.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.