Investor policies
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I have tried to avoid Ponzi from the days of MMM down to the recent racksterli or whatever it is out there, it is not because I don't need money then but the richest people in the world today didn't get there with Ponzi. I believe in proven system, I hate to see when people around me loses money to those funny schemes in a bid to double their money quickly. Any Ponzi no matter it's approach can be spotted far away.
THINKING OF STARTING YOUR INVESTMENT JOURNEY, NOTE THIS;
Everybody can make money but not everybody can keep money and that's what differenciate an investor.
The first rule of investing is "Don't loose money".
Some of the greatest opportunities for gain and loss come when other people forget Rule No. 1 above.
Buy when an asset is cheap, and sell when an asset gets expensive.
An investor must know the right kind of ventures.
The speculator's deadly enemies are: ignorance, greed, fear and hope.
Not every opportunity is for you.
Know that taking risk is inevitable but be focused on risk management.
Great investors focus on "risk management" because "risk" is not a function of how much money you will make, but how much you will lose when you are wrong.
Sometimes, a company can look so good on the outside but end up becoming a useless investment. As important as picking a good company for growth potential is, it is only a piece of the puzzle. Equally important is buying the company at an attractive price. If you buy the world's best company at a wrong price, it's as good as useless.
This chapter focuses on how to properly value a company in order to buy it at the best price.
Low priced stocks are cheap and high priced stocks are expensive. Always remember that stock price are just numbers.
Investing in low price to earn stocks is called value investing. No matter how good the numbers look, if a business is low quality, then it is a bad investment. It is the future growth potential that really counts.
To be continued...
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Thanks for this.