In the video below, Fool analyst Austin Smith takes a look back at 2012 to highlight some lessons investors can apply to 2013 and beyond.
Austin sees three key lessons:
1. Be a little more greedy.
In 2012, everyone was saying to stay away from housing stocks and banks. Uncertainty was high. There were concerns about weak markets and government regulation.
But by the end of 2012, Bank of America was up 100%. Lumber Liquidators, a stock intrinsically tied to housing, was up 200%. Home Depot was up 50%.
2. Be a lot more pateint.
When companies get cheap, it can take a while for them to correct. Ford fell from $12 to $10. Then, it erupted to $14 a share.
Austin sees the same thing playing out with Apple right now. Apple is too cheap today to ignore.
3. Brokers still lose.
Goldman Sachs recently reported that 65% of large-cap managers and 67% of small-cap managers underperformed respective indexes in 2012.
What happened? They weren't patient, and did not hold on to great companies for the long haul, Austin says.
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The article 3 Lessons From 2012 originally appeared on Fool.com.
Austin Smith owns shares of Apple and Ford. The Motley Fool recommends Apple, Ford, Goldman Sachs, Home Depot, and Lumber Liquidators. The Motley Fool owns shares of Apple, Bank of America, Citigroup Inc , Ford, and Lumber Liquidators. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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