Chapter 6 During the baby bear market. After a few weeks of being without a single share I decided to take a closer clinical look at the situation. To understand it clearly I made a comparision between two markets | CHAPTER SIX During the Baby-Bear Market A JL. JLfter a few weeks of being without a single share I decided to take a closer clinical look at the situation. To understand it clearly I made a comparison between the two markets. The bull market I saw as a sunny summer camp filled with powerful athletes. But I had to remember that some stocks were stronger than others. The bear market The summer camp had changed to a hospital. The great majority of stocks were sick but some were more sick than others. When the break came almost all of the stocks had been hurt or fractured. It was now a question of estimating how sick the stocks were and how long their sickness would last. I reasoned that if a stock has fallen from 100 to 40 it will almost certainly not climb up to the same high again for a long 77 HOT I MADE 2 000 000 IN THE STOCK MARKET long time. It was like an athlete with a badly injured leg who Would need a long period of recuperation before he could run and jump again as before. There was no doubt in my mind now that I could not make money by buying a stock and then trying to cheer it on. jones Laughlin had convinced me of that. I could remember how I almost felt myself willing and pushing that stock upwards. It was a very human feeling but it had no effect upon its market any more than spectators have on a horse race. If one horse is going to win it will win even if thousands of onlookers are cheering for another one. It was the same now. I knew that if I bought a stock and turned out to be wrong all the cheering and pushing in the world would not alter the price half a point. And there was no telling how far the market might fall. I did not like the trend but I knew it was no use trying to fight it. The situation reminded me of George Bernard Shaw s remark at the opening night of one of his plays. After the curtain fell everyone cheered and clapped except one man who booed. . went up to him and said Don t you like my play The man replied No I don t. .
