STUDYING HOW TO INVEST IS TIMELESS
What is investment?
Investment is a method of acquiring assets for the purpose of gaining profits. This happens in the form of rentals, dividends and interests. This is predictable income which should ideally flow into your wealth basket over the long term.
All you must do is to stay even and make sure that your investments are producing a rate of return which is equal to the prevailing inflation rate.
Everyone must bear in mind that investing is not a bed of roses. There is a lot of work that must be done.
We have watched soap operas with numerous stories about family fortunes which disappear as a result of lack of adequate investment knowledge. This is what we are after eliminating.
On this blog you will learn refreshing products, services and ideas. We will involve you in experimenting with extra-ordinary innovations in the field of financial investments.
We will experiment with various models to find out how long economic growth can be maintained.
We will have a look at the how influential men from the past made millions of money from trading in the stock exchange. One such man was John Keynes who played the stock market while in bed, a few hours in the morning as the rest of stock traders spent many hours in their offices toiling in vain.
John Keynes earned millions of pounds using this unique method. He also earned a lot of money for King’s College in Cambridge.
When I tell you investing is not a baby’s game, I mean it. Unless you are committed to learn about it, you will be frustrated.
After losing money professionals from various sectors lament. Below is what Isaac Newton said:
“I can calculate the motions of heavenly bodies, but not the madness of people.”- Isaac Newton
Newton was a scientist with great reputation for starting the stars but when it came to investments, the situation was different. He had to re-learn the new science of investment. Of course he performed poorly.
Countries which focused on mastering investments boasted about it. America is one of them. The president had this to say:
“The business of America is business.”- Calvin Coolidge
Three writers: Osborn, Barton and Durstine believed that Jesus was the “first real businessman.” They further noted that his parables were very powerful advertisements.
Stock trading was such a great event that even people talked about everything finally, they would end up discussing the stock market. At that point the dialogue was deemed to have become serious.
There were times when the market went into a nose dive taking with it the hopes of millions of people who had invested in it. When there are huge declines in the market place, such a condition has been nicknamed: Babson Break. This is named after one Roger Babson. This was a goateed and frail financial advisor based in Wellesley, Massachusetts. He predicted financial meltdown year-after-year.
The idea of stocks reaching a permanently high plateau was born out of the imagination of on Prof. Irving Fisher of Yale University. He was the greatest evangelist of intrinsic-value theory.
Stock market Crash
A stock market crash has nothing to be proud of. All it knows is how to crash and wipe out the dreams of millions of investors. Experience has taught us that a market crash is followed immediately by a depression.
Economists globally have been worried about human psychology and their willingness to thrown all their money behind get-rich quick schemes. It is tempting for everyone who has money to invest in such binges.
The tape readers are happy when we make such horrendous mistakes because they will just get paid their commissions whether we make a killing or not. It’s not their business to deliver value.
Trading stock was a dangerous affair to the extent that the company prospectus in the past had some form of writing on them to warm prospective investors that they can lose all their money.
“WARNING: THIS COMPANY HAS NO ASSETS OR EARNINGS AND WILL BE UNABLE TO PAY DIVIDENDS IN THE FORESEEABLE FUTURE. THE SHARES ARE HIGHLY RISKY.” – Company Prospectus label
This was just a warning, the same as that we see on the cigarette packets. The smokers are never barred from smoking through seeing the warning. There are some investments which are harmful to your wealth.
The securities exchanges at that time tried to warn fools about losing their money but it was in vain. No one would listen.
The buyers were fixated on the fact that the prices of their stocks would rise against expectations.