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Can investors make money, build wealth? December 17, 2008

Posted by shaferfinancial in Uncategorized.
Tags: , ,

Kinda of a wierd question from my perspective, but it seems to be the fundamental question of today’s investor psychology.  When many are questioning every investment activity, calling for a depression, or just doubting everything, we need to understand the answer to that question.  The answer is absolutely YES

If you can peel your brain away from short term thinking for a moment, you can begin to understand this point.  No matter what your investment strategy is, no matter how much capital you have at risk, if you understand what you are doing and can manage your emotions then the investment world is open to you.

Can you do it with fundamental analysis and a  buy and hold strategy in stocks? Yes (ex. Warren Buffett, Graham, Peter Lynch)

Can you do it with a trading philosophy in stocks?  Yes (Seykota, Selengut)

Can you do it with currency arbitrage, stock options? (Soros, Buffett)

Can you do it with investment real estate (Trump, Zell)

You can do it with as many different strategies as their are.  You choose the risk and the strategy what is right for you.  All I know is that people don’t build real wealth investing in mutual funds or annuities. They don’t build wealth investing in savings account or CDs.  They rarely build wealth being an employee and investing in the company 401K.  So why do the majority of people invest in the above things?  You tell me!




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