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3 Lessons From 2012

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 (NYSE: BAC  ) was up 100%.  Lumber Liquidators, a stock intrinsically tied to housing, was up 200%. Home Depot (NYSE: HD  ) was up 50%.

2. Be a lot more pateint.

When companies get cheap, it can take a while for them to correct. Ford (NYSE: F  ) fell from $12 to $10. Then, it erupted to $14 a share.

Austin sees the same thing playing out with Apple (NASDAQ: AAPL  ) 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.

Apple has been a longtime selection of Motley Fool co-founder David Gardner, helping lead his stock picks to gains of more than 125% in our Stock Advisor service since it launched in 2002. David has managed to trounce the market by always being on the lookout for revolutionary stocks and recommending them before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners, click here to get instant access to a personal tour behind David's Supernova service.

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9/23/2016 4:00 PM
AAPL $112.71 Down -1.91 -1.67%
Apple CAPS Rating: ****
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Bank of America CAPS Rating: ****
F $12.17 Down -0.01 -0.08%
Ford CAPS Rating: ****
HD $127.79 Down -0.96 -0.75%
Home Depot CAPS Rating: ****