Thread: Investing 102
View Single Post
  #2  
Old 12-12-2011, 04:08 PM
ErikLS2's Avatar
ErikLS2 ErikLS2 is offline
Senior Member
 
Join Date: Mar 2010
Location: Phoenix
Posts: 461
Thanks: 10
Thanked 9 Times in 7 Posts
Default

Two sayings I heard for the first time a long time ago that I've seen in action are: "Don't work for your money, put your money to work for you" and "buy low, sell high". Now, that may be oversimplifying it a bit I know but I have seen many people who don't seem to make enough in their jobs and need more money go out and find more work to do so they're working all the time. I don't think you can ever work hard or fast enough (at least at a job) and make as much money as you can doing the right things with whatever amount of money you have.

I've seen this personally in real estate. When things were going crazy I had enough sense to realize that it couldn't continue and sold at just the right time for an over 100% profit in 4 years. This can apply to stocks, cars, art, etc. It's usually a lot easier to figure out when things are cheap too because when they're booming we are psychologically wired to figure that it'll just continue, that it can't go back down. Some of the greatest financial minds didn't even consider that stocks in late 1999 and early 2000 would ever go back down. I remember talking to my father about this at that time and suggesting to him I was considering getting out but he told me a manager of a very successful mutual fund he knew told him "oh no, this is solid, it will continue". Well, I didn't sell but I learned a lesson which I applied to the next bubble, real estate, which I was a part of.

One last thing I don't ever forget comes from Warren Buffett who says he's fearful when others are greedy and greedy when others are fearful. Oh and one more (can't recall the source): If you want to achieve something find someone who's done it and do what they did. I like these little quotes if you can't tell.

Hope to hear from more people wiser and more experienced than I. Good topic!
__________________
Erik

69 Camaro
Several other things with wheels and engines

https://lateral-g.net/forums/showthread.php4?t=27133
Reply With Quote