Thursday, June 13, 2013

Investment

Three Things I’ve Learned From Warren Buffett from Bill Gates
He says a shareholder has to act as if he owns the entire business, looking at the future profit stream and deciding what it’s worth. And you have to be willing to ignore the market rather than follow it, because you want to take advantage of the market’s mistakes—the companies that have been underpricing. For me this is a really hard part to predict because all the info from internet is not accurate or often not synchronizing with the company status I talk about the real time reflection but the time you know about it, it has been too late ofter you can see why the stocks go up suddenly. Unless you have connection with the company. Only things that I learn never buy from Chinese/Indian company stocks and only buy the large value/blend/growth with 5 stars rate. It does not making a lot of money but it is safe it takes time to go down slowly you have the time to react because sometimes you are busy with work and don't have time to follow the news and the trend of market. Even with invest the large blue chip companies it is still better put the money in the bank, with the return rate around 5-20%. The real estate is more safe and less risky than stocks. With the global economy the stock is more risky it depends so many elements which happen in the world. China or Japan market could effect US stock easily. Sometimes you feel no control and nothing that you can do. Stocks are numbers until you sell it. If you follow stocks enough, you are confidence in it and if you are right because the market's mistakes for example this stock if you invest 5 years ago you could earn 732% there is nothing in the world that having this kind of return. I have to keep track all the stocks in the past 5-7 years even I did not buy but made the spreadsheet and put the date I bought just to see how it performs in 5 years. It is important to know when to buy and when to sell it. It is ok to make a mistake to buy wrong stocks but it is not ok to keep it, there is a point you have to cut loose and invest in other stocks instead of waiting for it to recover and come back. This is lesson learn for me. Knowledge is good the more you know the less mistake you make when acquire the stocks.
STX note $43.85 +$0.28 +0.64% 100.000 $5.27 $4,385.00 +$3,858.00 +732.07% A final note, I don't think that stock is gambling it is an investment which due to diligent researching and sometimes you do need luck I would say less 20%. Don't trade based on people opinions but trade based on something fundamental. Based on something you strongly believe in.