Can You Beat The Stock Market Using Nothing But Folksy Advice?

Market reflectivity! Quantum physicist stock pickers! Cup and handle technical analysis! Investing gets very complicated, very quickly. But, can you beat the market using nothing but folksy investment advice?

Let’s look at three incredibly common, often mocked, “common sense” investing quotes.

“Buy when there’s blood in the streets, even if the blood is your own.” — Baron Rothschild

This might be the most well-known investment quote in history.

As legend goes, the Battle of Waterloo caused a market crash in London. And when this happened, Rothschild swooped in and made a fortune.

In modern day, people use the famous “Blood in the streets” quote almost any time there is a market correction. But does this advice work?

Yes, if you buy the right assets.

Fundamentally solid businesses or (broad market indexes that contain them) do well in the long-term, regardless of market sentiment.

Unless you’re an investment nerd, you’ve probably never heard of the “Salad Oil Scandal” before. This was a case of corporate fraud, and it caused $180 million in loses to companies like American Express and Bank of America.