The 2008 Wall Street financial meltdown that almost scuttled the world financial market was the result of people engaging in trades which they did not fully understand – the so-called experts in government, the banks and the academia of world-renowned institutions such as Harvard. If you wish, check out this documentary – Inside Job – among many other published US congressional findings, articles and videos.
As usual, it was the working-class Joe who bore the brunt of the insanity that buffeted the markets and it was the working-class Joe who paid to bail out the fat cats.
However, even though no clear changes had been enacted and every trend points to yet another meltdown, memories have faded (and so quickly) and people still devour opinions and “reports” put out by these “experts”.
So, what can mere mortals like you and I do to safeguard our hard earned money? How can we ride out the next storm when it hits us? The key word in the last sentence is “when” – there is no “if”.
Perhaps we can start by listening to the self-made billionaires who came out of the 2008 meltdown intact – shrewd men, contrarians who bucked the herd instinct.
Warren Buffett had made clear that we should invest only in businesses that we understand.
As a matter of fact, very few of the professionals who headed the huge brand name investment banks along Wall Street really understood the true nature of the beasts lurking within products such as arbitrage, subprime and similar exotic flavour-of-the-month “stuff”.
We can’t change the world but we can adapt to, at best, maximise our returns or at worst, safeguard the value of our hard earned money.
We can’t leave the money in the bank. In the long run, thanks to the compounding effect of inflation, that is a sure-to-lose proposition.
The only way is to embrace value investing.
You might know what “compounding” is, you might not know what “value investing” is and you might be baffled and overwhelmed by all the financial and stock market jargon.
That’s where our FREE Master Class in Value Investing comes in. Join us for a free 3-hour class and arm yourself with knowledge that will make your future that much more secure.
A 3-hour investment and at no charge. Now, that is a good deal in any business realm.