Thread: Investing 102
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Old 02-28-2014, 07:30 AM
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GregWeld GregWeld is offline
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I just hope none of you were in Bitcoin... and I hope you all understand WHY I was against this kind of speculation. While it's fun to be cutting edge - it's fun to be "the guy" that's into the hot new deal on the internet.... I totally get that.

What IS NOT FUN is losing 40% in a month! In ANYTHING. While this might come crawling back - and frankly - I can't even speculate whether it will or not - because nobody knows what it's going to do. Does the bankruptcy filing of MTGOX exchange cause a domino affect? Who knows. Nobody knows how strong the underlying exchanges are - they're unregulated private entities.

This has - for me at least - been a great example for INVESTING 102. The Facebook IPO was another good example... as EVERYONE (including me) expected this IPO to go straight to the moon.

Here's what the take-away should be from these. Sometimes the "sure thing" isn't.

There's nothing wrong with getting into this stuff --- as long as you understand and can afford the consequences when things don't go your way. That's the take away.

It's like a guy that hawks everything his can - to build a $40,000 twin turbo whiz bang motor --- and at the dyno - it goes FIZ BANG.... It would have been great when it made 2000 hp at 5000 rpms --- but not so great when the rod opened a window in the block. THIS GUY SHOULD HAVE BUILT A $10,000 motor and lived to play another day.

That's all.....
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