About Darvas

Nicolas Darvas was a champion ballroom dancer in 1952 who decided to get into the market. He developed his own system for growth investing and fine-tunes it to achieve the result in the title. It’s a fun read, full of his personality and with enough reversals, eccentricities and breakthroughs to keep you interested while you’re learning more than you realize about technical analysis and portfolio management. It’s a great story.

In his book, How I Made $2,000,000 in the Stock Market by Nicolas Darvas, Nicholas Darvas relates how he combined both fundamental and technical analysis to select the best stocks. Darvas realized early on the power of investment themes and knew the importance of finding the next big thing. Darvas knew that having the right idea would attract the most investors to a stock and subsequently boost share price, but he also knew that it was important to leave emotions at the door. Darvas knew the importance of this investing maxim: Don’t fall in love with your stocks! Darvas details how he made $2 million in the stock market which would have been over $20 million today.

Frequently on the road, Darvas would have Barron’s shipped to him to see how various stocks had acted the previous week. Instead of reading through all the articles and opinions, he would simply throw everything away except for the quotes section. This way he could see what was happening in the market and make judgments without being influenced by news of the week. And it worked wonders!

My advice: Take a step back from the day-to-day news and gyrations. Instead, keep focused on the big picture. Yes, it’s fun and exciting to watch things unfold minute by minute. But I contend you’ll make more money by ignoring the loudmouths on TV and just staying focused on the major trends. Remember, no one has ever gotten rich listening to anyone else.