Investment is a little like relationships
It never fails to tickle me that doing investing is a little like marriage and relationships.
When you have dividends or spare cash, what should you do with it?
Value in a relationship is like trust, you have cash? you have chips? You invest more in the company, just like you invest more trust in a relationship. Of course it is more risky, but thats why its called trust. We could talk all day about trust of course =) but if you trust a person who would fail you, you are like a speculator, you buy into a stock (even at inflated costs) hoping it will go up. Investing is when you expect (not hope) that you will have a higher or equal return ;) chew on that for a while. (I did'nt come up with that Buffett said that in 1992)
"There is no question that current listings and future offerings are improving in quality and thus, the thinking is there will be more stability and higher share prices extending over the long-run -- and potentially even more upside this year although high valuations may limit the extent of further gains. Somewhat ironically, it is these same new blue chip listings that have investors pulling money out of already listed shares in order to take part in IPOs."
This quote Link tickles me as well. So you are average Joe, like the rest of us, you have limited cash/juice/chips. Choose your mate wisely, dun put your money in and out. Or you will never reap the benefits of a healthy growing relationship. Your relationship takes time to grow and blossom. Always seeking new love, new faces will leave you empty, both in trust, value and cash. In investment terms you are just begging to lose money brother.
When you have dividends or spare cash, what should you do with it?
Value in a relationship is like trust, you have cash? you have chips? You invest more in the company, just like you invest more trust in a relationship. Of course it is more risky, but thats why its called trust. We could talk all day about trust of course =) but if you trust a person who would fail you, you are like a speculator, you buy into a stock (even at inflated costs) hoping it will go up. Investing is when you expect (not hope) that you will have a higher or equal return ;) chew on that for a while. (I did'nt come up with that Buffett said that in 1992)
"There is no question that current listings and future offerings are improving in quality and thus, the thinking is there will be more stability and higher share prices extending over the long-run -- and potentially even more upside this year although high valuations may limit the extent of further gains. Somewhat ironically, it is these same new blue chip listings that have investors pulling money out of already listed shares in order to take part in IPOs."
This quote Link tickles me as well. So you are average Joe, like the rest of us, you have limited cash/juice/chips. Choose your mate wisely, dun put your money in and out. Or you will never reap the benefits of a healthy growing relationship. Your relationship takes time to grow and blossom. Always seeking new love, new faces will leave you empty, both in trust, value and cash. In investment terms you are just begging to lose money brother.
posted by god_is_good478 at 9:23 PM
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