Four Simple Words Are The Key To Wealth
"Buy low, sell high."
Sounds simple, doesn't it? Everyone knows that buying low and selling high is how you make money as an investor. Yet somehow, everyone isn't rich!
HOW IS THAT?
Investments like stocks, bonds and gold are the only items that people will never buy when they're 50% off from their highs. Yet clothes, cars, and appliances, we buy on sale.
We'll comb the newspapers looking for bargains and coupons. We'll even drive to three stores in order to get the best price on a mattress. We'll read Consumer Reports and visit four dealerships to get the best deal on a car.
But whenever it comes to investments, the "retail" investor is more willing to buy when things are expensive than when things are on sale. And the average investor pays full price, retail, and gets killed. The "smart money" loves these little guys who pour in at the top!
So the "Road to Riches" as an investor is to patiently search out a bargain and once you've found it and made an investment (buy low), then you just sit back and wait for the crowds to come in and drive it up (so you can sell high)!
* * * * *
Sounds simple, doesn't it? Everyone knows that buying low and selling high is how you make money as an investor. Yet somehow, everyone isn't rich!
HOW IS THAT?
Investments like stocks, bonds and gold are the only items that people will never buy when they're 50% off from their highs. Yet clothes, cars, and appliances, we buy on sale.
We'll comb the newspapers looking for bargains and coupons. We'll even drive to three stores in order to get the best price on a mattress. We'll read Consumer Reports and visit four dealerships to get the best deal on a car.
But whenever it comes to investments, the "retail" investor is more willing to buy when things are expensive than when things are on sale. And the average investor pays full price, retail, and gets killed. The "smart money" loves these little guys who pour in at the top!
So the "Road to Riches" as an investor is to patiently search out a bargain and once you've found it and made an investment (buy low), then you just sit back and wait for the crowds to come in and drive it up (so you can sell high)!
* * * * *
posted by Bob Moser at
6:57 PM
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