Value Investing and You

Take a look at the stock market reports over a period of time. There is always so much excitement generated. Market is going up. Stock prices might tank. Going south. The counters are climbing into uncharted territories. What an adrenalin rush!

Stock Market

Most of these reports and analysis are put out and/or sponsored by the – you got it – the brokerage firms. Now, the unspoken acceptance is, these firms are keeping tabs on the market, they do careful market analysis and all the information they put out will better inform the market – that is, investors such as yourself.

Let’s digress a little and pose these questions:

Is this a good time to buy property?

Is this a good time to buy a car?

The property agent and car salesman will probably say – YES!

Is this a good time to sell my property?

Is this a good time to sell my car?

The property agent and car salesman will probably also say – YES!

Even if they offer some small squeaks to the contrary, the thrust of the answer will be always be – YES!

The reason is simple and underlines a brutal truth – and some might call this cynical – the property agent and the car salesman depend on sales commissions.

Now, back to our stock market reports.

Just because, unlike the car salesman and property agents, the brokers and stock analysts house themselves in flashy glass skyscrapers, regularly appear on TV to express their “expert” opinions and speak in financial jargon that mortals like many of us don’t always grasp – does not make them any different.

“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.” ~ Warren Buffett

Their income, their commissions are heavily reliant on people buying and selling stocks. The more you buy, the more often you buy – the more commission they reap. It’s therefore fair to assume much of the market excitement serves to paint a high degree of uncertainty, stoke emotions such as fear and greed – so that “investors” will trade.

As Warren Buffett has pointed out, these people are not “investors”. The people who churn their trades are – traders.

Buy-Sell! Sell-Buy! Buy-Sell!

Imagine if everyone did what Warren Buffett and the other truly savvy value investors do – buy and hold! Most people in these glass skyscrapers will be in the poor house. Yes, occasionally, value-investors will realign and reallocate their investments – but generally they hold.

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” ~ Warren Buffett

Do not for a moment discount the work of stock brokerage firms. They do a valuable service by putting out their reports and opinions. However, do beware their vested interests. Do your own due diligence.

The bottom line is this: The best person to look after your investments, the truly dedicated person who cares for your investment is – YOU!

The Myth

Here, we need to debunk one of the myths that surrounds investing in the stock market – the myth that one needs to be a financial wizard, an investment expert before one can safely invest in the market. Of course, the more you learn, the more you know, the more experience you have – easier the investing and safer the investments.

However, getting started is also easy, fun and faster than most people fear. And you do not need to be an accountant or a financial wiz-kid.

This is what you can do to check out what is involved:

Attend a FREE Master Class on Value Investing and in less than three hours, you’ll receive the gist of how easy it is to build an investment portfolio that will give you steady returns – passive income that will lead to your financial freedom.

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Free Master Class on Value Investing

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