Historical performance may indicate future success from "summary" of Security Analysis: Fifth Edition by Benjamin Graham,Sidney Cottle,David Le Fevre Dodd,Roger F. Murray,Frank E. Block,Martin L. Leibowitz
As investment analysts, our primary task is to evaluate securities based on their potential for future success. While it is true that historical performance can provide valuable insights into the future prospects of a security, it is important to approach this concept with caution. When we consider the historical performance of a security, we must take into account the prevailing market conditions at the time. Just because a security has performed well in the past does not guarantee that it will continue to do so in the future. Market conditions are constantly changing, and what may have worked in the past may not necessarily work in the future. It is also important to cons...
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