If you want to gamble go to vegas, and if you want to speculate buy cryptocurrency, don't do it with your savings, but if you want to invest your money long term you should buy good corporations that have great balance sheets. We all create garbage, consume water and rely on defense, that is where I recommend to have the bulk of your money invested long term.
My strategy for stocks is simple, find companies that we all use everyday and rely on in industries that are growing not shrinking. The most basic companies are the ones that tend to always do well (outside of fraud or a huge natural disaster). By diversifying into these kinds of companies you will ensure your wealth will continue to grow overtime as they earn more revenue each year!
I look to make things simple, invest in what you know. If you love something, look and see if it is a stock. If it is publicly traded you can then look if they are profitable, what kind of debt they have, and what dividends they pay.
What I look for:
- Little or no debt
- GAAP not their adjusted crap!
- Dividend payments over past 5 years must grow on average at least 3 of the 5 past years. IE. The dividend must have been increased at least 3 out of the last 5 years.
- Margins increasing year over year with higher revenues
- Revenue per employee. This metric is interesting to me since it shows how much cost per employee per $1 of revenue is generated. This also will factor into the next and final point..
- Automation. Looking at ways to improve margins and revenue per employee by utilizing automation and machine learning.
The fact laid out here are undoubtedly true. Long time investments are the best investments. That is how millionaires are made. I recently read about a certain man who bought two pizzas for 10 000 bitcoin just 8 years ago. Now let's assume this man invested his bitcoin instead. This man would have been financially sufficient today. This is a financial advice. Verified!
Thanks for reading and commenting! The best moves are long term thinking not those trying to catch a falling knife and throw it at the top of the roller coaster! The best ways to make money are to invest in things that already do that you already use!
When my father was alive, he used to tell me: "My daughter, Eat 5%, preserve 15% for Short time investment and 80% for long time investment"
I believe the younger you are the more risk you should take and the older you get the wiser you should get with your investments. That is very good advice you, the only time I disagree with it is when you are young. If you got a lot of time left, take the chances, it only takes one good risk to pay out and make you rich for a lifetime!
This is the most intelligent statement I've heard this week so far
Do you look at the macro picture???
If I am investing in a stock I aim to hold it for at least 10 years provided nothing crazy changes with them. For example Boeing (BA) and Waste Management (WM) I plan to hold for life.
https://www.zerohedge.com/news/2018-02-26/warren-buffett-isnt-buying-why-should-anyone-else
“People don’t tend to get rich (or stay that way) by buying mediocre assets at all-time highs.
The time to buy is when prices crash… when the highest quality assets can be acquired for peanuts.
And as sure as night follows day, prices will decline. Asset prices always move in boom/bust cycles.”
The well connected oracle stockpiles cash when he knows there’s a fire sale on the way
Warren Buffet bought GE over Boeing (which I did), he bought Yahoo over Google (which I did), and he bought IBM over Nvidia (which I did). He may have been smart but he doesn't even follow his own advice anymore, buy what you know! He doesn't know technology and has proven that with his investments lately. He isn't investing right now because he doesn't see opportunity anymore because he is too old. There is ALWAYS a bull market somewhere, you just have to know where to look.
The key is avoiding unnecessary risk. Cycle timing is antithetic to mainstream & Buffett’s general advice but probabilities shift over time, usually aligning with huge cash piles
I'll take my automation, defense, waste, and crypto investments that serve me well over his advice any day. Ironically I use his OLD strategy, buy what you know for the long haul!
I mean the man brags about having a Samsung flip phone, if you want to take technological investing advice from him by all means go for it, I only work in software for a living and watch 8 year olds know more about using smart phones than he does...
Did you consider the security reasons or other alterior motives for why he would say that publicly? I tend to think everything about his image is carefully crafted
He is old & not technologically adept, but can buy a thousand employees who are young & tech smart. He is still more well connected & knowledgable about the true nature of the markets than I or anyone I have ever met will ever be.
Did you follow this deal?
https://www.cnbc.com/2017/06/30/warren-buffett-just-made-a-quick-12-billion-on-bank-of-america.html
How much you wanna bet that huge stockpile of cash eventually gets put to work via a sweetheart bailout deal like BAC trade?
Will he still be around in another 5-10 years when the profit realizes? Does it matter? Berkshire will live on using the same old tricks that were cultivated long before Buffett.
Personally I don’t like any investment strategy that is only successful riding it out for 10-50 years, but I am no warren Buffett
Yeah so he is part of the fraudulent banking system that we hate and earns his money because he has an unfair advantage in the bond and housing and banking markets. This just proves more why I do not listen to him, he acts like he is just a nice old man but he really has ties with some of the shadiest shit on the planet.
My point exactly, I like to examine his behavior from that hypothesis
They do tend to beat gains from staying in cash though.
Not when you are in good stuff because you are not considering the tax implications of trading.
This is referring to long term holding. In something like the sp500 buying stuff the peaks and holding till the next peak still beats holding cash in an interest bearing account. Pretty easy to beat 1-2% a year. Meaning it's pretty easy to make more being invested in something than not being invested at all over a long period.
But do you buy them ten years into a bull cycle?
If you liked them at one price why not like them even more at a cheaper price. Till the fundamentals of the company change and deteriorate from bad management and bad deals price month to month, quarter to quarter, even somewhat year to year is sorta irellevant and short term thinking. That's fluctuations of the market overall not the company. And the market will always go up then down then back up then down. So plan for the inevitable down to buy more good companies but don't ever think it won't continue up or come back up. Stay invested.
Exactly you buy the COMPANY not the stock (yes I mean you physically own the stock but I am talking why). You don't own a piece of paper that is worthless you own a share of a company that generates profits. That is why despite Ford (F) stock not going up for the last 2 years I have not given up on them! 6 PE and 5.5% yield while they automate their plants sounds like a good deal to me!
I buy every chance I get and use a put-write strategy if the markets are too high to either earn a return off the premium paid or buying the stock at an adjusted price relative to the current market prices. Either way over a 10-50 year cycle it tends to not matter if you are buying in good companies.
Very smart way to invest IMHO. I love good management that is also buying shares too.
People first, product second, that is how you get rich!
I would also take a look at who's looking into adopting blockchain tech in some manner. Most of the people in this tech can see it taking over the way we do business in the future.