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.
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.
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