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Green Stocks |
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Rule #1 - Do not lose money! Rule #2 - Never forget rule number 1! ( by: Warren Buffet )For comments or questions please email: : admin@equityresearch.com |
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Cockiness Loses You MoneyA sure way to lose money when investing is to be cocky. Do you have little to no training in investment, but think you can consistently get 30% returns or higher? There are a lot of people in this boat that think they can beat the market and all the other financial managers. What happens is that these people usually end up losing most of their money because they go into risky obscure businesses that have short term prosperity and promise gigantic returns. While everything looks good, the investor may make some great money, but eventually the obscure companies will falter and the cocky investor will eventually time it wrong and lose big. That money won't easily be made back.Here is what one of these cocky investors are really saying when they think they can beat the returns of everyone else. 1- I can beat the returns of Harvard M.B.A. Graduates even with no degree at all because I took an investment class and they let me in on some “secrets”. 2- I can beat billionaire investors like Warren Buffet. Warren Buffet isn't telling you the unbelievable deals he has going. He can really make a lot better returns than what Berkshire Hathaway shows. Give me a break. Why do so many untrained idiots think they can beat Warren Buffet and all the other experienced investment professionals with only minimal training. 3- I can use an internet connection to get all the information I need. I can go to sites like Fidelity and Schwab and Morningstar to make all my investment decisions. If you think this, try again. These sites only give you basic information. You need to call the companies to get financial reports and then crunch the numbers yourself. 4- I will be rich by using technical trading information. I'll put together some stochastic or derivative trades and then read a book about how to beat the market. I am sure that any such book for sale at Barnes and Noble or Amazon will have much more insight than Warren Buffet or Harvard M.B.A. Graduates. Again, most investment books are very basic and do not give you a “secret ticket” to wealth. Wealth comes from doing your own hard work. If you want to be the best investor in the world, then get the best training in the world. Study on your own and, again, crunch your own numbers and make decisions that you truly understand are based on objective decisions. But I Want to be a Great InvestorIf you want to be a great investor, seek out the best people to learn from. You won't find the best people peddling trading secrets, or selling books to the masses. The great investors are making tons of money off their investments. They are not going to sell all their knowledge for a few dollars at a bookstore. If you were a billionaire, would you go around trying to sell your ultra secret trading platform that will make everyone a billionaire too? It just doesn't work that way. Look at how Warren Buffet got trained. He actively sought out the best financial guru he could find. In fact, he practically begged Benjamin Graham to teach him. In all reality, the right person isn't going to just hand you a golden ticket. These kinds of people are looking for those that are motivated enough to go out and train themselves at the best schools and at the best fortune 500 companies. Most of the best professionals started at only a handful of fortune 500 companies and most come from only a handful of the best schools. These people pay dearly to learn how to become great investors. Do you really think you can get there with an internet connection, a couple classes, and a book from Barnes and Noble? |
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