Why Cooler Heads Prevail

摘要

Investors who use computer screens to pick stocks don't attract a lot of hype. There's not a lot of drama in combing over gigabytes of data looking for companies with strong sales growth and expanding profit margins. J But this is exactly how Louis Navellier, 49, has carved out a niche as a quantitative, or "quant," investor. Stock picks from Louis Navellier's Emerging Growth, his oldest newsletter, have a 19.2% annualized return since 1985, when Hulbert Financial Digest began tracking it. Today, Navellier & Associates, based in Reno, Nev., runs three other newsletters and manages $5 billion for individuals and institutions. J Navellier lays out his stockpicking strategies in the newly published The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing. In the chapter excerpted and edited below, he discusses how investors make bad investment decisions by letting their emotions get in theway.