The world of investing is very confusing to people, because the very word “investing” conjures up countless different meanings for people. For some people”investing” means buying mutual funds. For some people the word means buying common stock, preferred stock, blue chip stock, technology stock, small cap stock, bonds or foreign currencies. For still others investing means buying commercial real estate. For others investing means buying residential real estate. Without clubbing the dead horse here, the point is that there are many avenues that you can pursue as an “investor.” However, I think we should again listen to Warren Buffet’s words on this subject. Warren once said, “Don’t diversify. Put all of 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 investment sources. There are many different investment products, strategies and procedures, but you only have one life. Choose the path that is best for you.
Added Confusion Caused By Too Much Chatter From the Moron Media
Today we live in an age where we have 200 + TV stations to choose from and each station is determined to now have 24 hour programming even if that means having the 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 I about every potential threat that might be facing us at all times. I made it through my childhood without wearing a helmet, did you?
As the media looks for news stories they simple go out and get these so-called experts on who say incredible statements like, “The market is very over-extended right now. I foresee 8 months of contraction followed by a double dip recession. However, with oil prices hovering a record lows, this might just offset the market dip just enough to get foreign investors back in the game which will prop up our currency against the EURO. With Greece’s recent election and government workers strike, Europe is very nervous about this change.”
What the hell is the media talking about? Is Warren Buffet saying this stuff? Is Bill Gates speaking this nonsense? Is P. Diddy or Lebron James saying this stuff? 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 pin-head / investment expert / retired professor from the University of I-have-never-actually-left-the-campus-or-run-a-business-in-my-life-yet.
I am always hearing people at social gatherings say things like, “Hey do you know what they next hot stock is going to be?” My friend, by the time you and I hear about the hot stock, it won’t be hot anymore. Create your own hot stock. Make your own IPO, don’t scavenge around for the crumbs of insider investors.
Most People Use the Word “Investing” To Refer To the Justification of Irrational Purposes
Have you ever witnessed someone trying to justify buying a brand new vehicle to save 4 miles per gallon on gas? Have you ever witnessed someone trying to convince you that their house which they will pay for twice after paying all their interest is a good investment? What about this one. Have you ever heard a middle-aged woman justifying completely remodeling her entire house to “improve the resale value.” Have you ever done the math in your head on any of these scenarios? My friends, these “investments” are not investments. These expenditures are irrational expenditures. If they bring you pleasure that is fine. But do not call them a good investment because they are not.