The world of investing is very confusing for people, because the very word “invest” conjures up countless different meanings for people. For some people, “investing” means buying mutual funds. To some people, the word means to buy common stocks, preferred stocks, first-class stocks, technology stocks, small-cap stocks, bonds, or foreign currency. For others, investing means buying commercial real estate. For others, investing means buying residential real estate. Without beating the dead horse here, the point is that there are many avenues you can take as an “investor.” However, I think we should listen again to Warren Buffet on this subject. Warren once said, “Don’t diversify. Put all your eggs in one basket and watch that basket closely.”
My friends, there is not a single person on the planet who is truly a guru of all sources of investment. There are many different investment products, strategies and procedures, but it only has one life. Choose the path that is best for you.
Additional confusion caused by too much Moron media talk
Today we live in an age where we have over 200 TV stations to choose from and each station is determined to have 24 hour programming, even if that means having POMEGRANITE-FISH-OIL-INFO-MERCIAL on all the time. In this busy world, Fox News, MSNBC, CNN, and other news stations feel that it is necessary to warn you and me about every potential threat that we might face at all times. I spent my childhood without wearing a helmet, you?
As the media searches for news, they simply look to these so-called experts who make incredible statements like: “The market is very extended right now. I anticipate 8 months of contraction followed by a double dip recession. However, with prices of oil hovering around all-time lows, this could offset the market downturn enough to get foreign investors back into the game, propping up our currency against the euro. With the recent elections in Greece and the strike by government workers, Europe she’s very nervous about this change. “
What the heck is the media talking about? Is Warren Buffet saying these things? Is Bill Gates saying this nonsense? Q. Diddy or Lebron James are saying these things? The answer is no. “No, they are not saying this because they are too busy seizing opportunities and making money to take time out of their schedule to listen to the investment expert / retired University of I-have-never professor. really-left-the-campus-or-running-a-business-in-my-life-yet.
I always hear people at social gatherings say things like, “Hey, do you know what the next popular action will be?” My friend, by the time you and I find out about the hot stocks, they won’t be hot anymore. Create your own hot stock. Make your own initial public offering, don’t look for the crumbs from inside investors.
Most people use the word “invest” to refer to justification for irrational purposes.
Have you ever seen someone trying to justify buying a new vehicle to save 4 miles per gallon of gas? Have you ever seen someone trying to convince you that their house, which will pay twice after paying all their interest, is a good investment? What about this one? Have you ever heard a middle-aged woman justify a complete remodel of her entire home to “improve resale value”? Have you ever done the math in your head in any of these scenarios? My friends, these “investments” are not investments. These expenses are irrational expenses. If they give you pleasure, that’s fine. But don’t call them a good investment because it isn’t.