From my reading I knew that stocks – like herds, indeed – form groups according to the industry they represent and that stocks belonging to the same industry have the tendency to move together in the market, either up or down.
It seemed only logical to me that I should try to find through fundamental analysis:
Then I should buy the stock of that company and hold on to it, for such an ideal stock must rise.
I started studying the personality of a stock in relation to its industry group. When I read the quotations of GENERAL MOTORS I automatically looked at those of CHRYSLER, ASTUDEBAKER and AMERICAN MOTORS. If I looked at KAISER ...