It is commonly said that the stock market is like a jungle of animals. There are the bulls describing situation when markets rises or even people who aims to make money when market rises. There are the bears, situations where market falls, or people who speculate the fall of the stocks to make profits. There are also the sheeps, people who follow the crowd.
The saying goes that the bulls and the bears make money while the sheep gets slaughtered.
Well, I have taken on the role of the bulls, bears and sheeps and my final conclusion is that i didn’t like any of those roles, because the fundamental mindset of these animals is to make a KILLING in the stock market.
Have you ever seen a mam fighting a bull or bear? Or have you seen a sheep get slaughter?
Lets just take a bull fighting scenario… If you watch these bull fights on youtube, you will notice, that when the man successfully trap the bull, he looks sleek, cool and admirable. Like a hero. But you should go ahead and watch the times when the bull gets the man, the downfall looks tragic. And if you want to watch a man fall the bear… go ahead and enjoy the blood scene.
This is pretty similar to the stock market when you are speculating and trying to make a killing. When you win, you look good, but when you lose, death may be the result.
And even though i was hooked and addicted by the trill of making a killing in the stock market, there were times, i was the loser and it felt painful too. I decided that it was not the kind of life that i want for myself and my family.
Value Investing takes on a different approach to the stock market. Instead of trying to make a killing, Value Investors identify and acquire Cash Cows and bargain price. Cash Cows (Value Stocks) are tame, stable and produce a steady stream of milk. And when the time is right, you can sell this Cash Cow for a huge sum of money.
In Value Investing, being able to identify a good Cash Cow is critical. And there is a checklist to ensure that this Cow is great and enduring. The next key is to buy it at the right price.
One thing i am passionate about is how to milk the cow for a passive stream of income and using what i call VIOs (Value Investing Options Strategy), i have been successfully creating Monthly Income Stream from selling Options of these Cash Cows.
Of course, as my cash grows, so does my acquisition of cash cows and the stream of income flows in as well. Using what Value investing methodology, based on a 4 steps A-B-C-D (in my other posts), i can milk the stock market instead of going in for a brutal fight!
I share this A-B-C-D method in our free workshop, so do join us so that you can milk your way to financial freedom and riches as well.
To your dreams,