|
||
|
||
Green Stocks |
|
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 |
||
Follow the Smart MoneyYou are not the smart money. Until you believe this, you are going to lose a lot of money doing foolish things. What is smart money?There are less than a thousand people that are the smart money. The top officers of the fortune 500 each sit on more than one board of different companies. These guys have all the top information and share it with each other. It is like insider trading without it being illegal. They have accountants that report back to them about all the details of companies. They are friends with each other and share information. This is the smart money. They are always going to know more than you about what is going on. In all probability, you can't beat these guys. They are smart, motivated, and have better information than you will ever get. So, what can you do? Follow the Smart MoneyRead insider trading sales at companies. Make a list of the top people at the top companies you are interested in. Then, keep track of their trading. By law, their large trades must be disclosed and you can see what they are at various investment sites like Fidelity and Schwab. By doing this carefully and diligently you can spot trends.Suppose you were following the real estate trend. You could look at the top officers of Freddie Mac and Fannie Mae and Countrywide and Bank of America and others. The top guys in the companies always sell the stock right before it tanks. This would be a clear signal to you to get out. On the other hand, you can also see what people are buying. If Warren Buffet buys into a company you might follow his lead. If you are following quickly and diligently, then you can be one of the first people in after the big boys. How badly can you do following Warren Buffet around? Again, follow them in and out. You must always have an exit strategy. Warren Buffet likes to hold things long term and that means he would probably be a good person to emulate. Who the Smart People Aren'tThe smart people aren't Moodys, Morningstar, CNBC, Jim Cramer, or analysts. The smart people are the guys at the head of the largest corporations and that sit on the most boards. You might find the top 50 people that sit on the most boards. They will have awesome information.Bottom LineYou might be a genius, but that doesn't mean you have the same information as someone else. Follow the people that have the best information and do it quickly. You will get superior results investing this way. |
|||
 |
|
|