Dear reader,
These are crazy times, every country is going in lockdown, streets are empty, no airplanes in the sky. The world is changing as we know it.
I use this time to educate myself. I have bought several books and I am planning on buying some more in the next weeks.
But why is this the investing opportunity of a lifetime? Isn't the stock market falling down every day, aren't the business closed now and everyone is working from home..???
As Warren Buffet says: Attempt to be fearful when others are greedy and to be greedy when others are fearful.
Four opportunities of a lifetime:
In our lifetime we will have four or five great business cycles where we can profit from. This means we are able to buy the business that we like so much at a discount from where it was several months ago. Think like you are doing your shopping. You love steaks, this week steak is at $5,- a pound, that's a lot for a steak, now you wait a week and you see that the same steak is selling for $2.50 a pound. What do you do? You buy it!!
The same goes for the financial markets. Over the last weeks the markets have been in a selloff and no market has been speared. Reaching 52 year lows in weeks after the 52 year highs. With different markets and sectors declining from 25% to 75%. So how do you like your steak? 25%, 50% or 75% off?? It is all up to you.
When to buy?:
This is the most difficult question you can ask. No one knows where the bottom is and what the markets would do the next day. Specially when there has been so much selling going. Don't try to time the market. 9 out of 10 times you will miss the boat and loose on your investments. So when is the best time to buy? For now my prediction is once we have reached the maximum amount of cases with the Coronavirus. Once the new cases are declining we will see an possible end coming.
There is no best time to buy, it is all dependent on your financial goals and investment goals. Do you invest for the lang term or are you a short term trader? By knowing what your financial goals are and your investments goals it is easier to understand when you need to buy.
My investments:
So for me I have clear and easy investing strategy. I invest a specific amount each month in different stocks for my retirement. I am 28 years old and I want to have a save and financially free future. I choose which stocks I would like to invest in and I make sure my portfolio is up to date.
Because I invest each month I get the highs and the lows. This means that over a specific point in time I have leveled out my portfolio and get a greater decent return on my investments.
Example: I buy $100,- of stocks of company A at every 1e of the month. So this month company A is trading at $10,-, now I can get 10 stocks of company A, Next month the company is trading at $7.50 I can get 13 stocks and so does this go on.
Also I saved up cash for these downturns in the market and I can deploy it when ever I need to. If I can find great companies for a discount price I can add it to my portfolio and grow even further in my financially free future.
What to buy?:
I am not a financial advisor or expert trader or investor. I am just starting in the market and want to share my experience, successes and failure with you, and I hope you can learn something from me.
To find out what stocks to buy and how to know if the stock is trading on a discount I suggest you to read the book: 7 secrets to investing like Warren Buffet. I'll leave a link at the bottom of the blog.
It is a great book and it would guide you in your first steps with investing. A must read.
Thank you for reading, stay save and stay invested.
See you next week,
Franklin, Moments2Success
https://www.amazon.com/Secrets-Investing-Like-Warren-Buffett/dp/1982130334
These are crazy times, every country is going in lockdown, streets are empty, no airplanes in the sky. The world is changing as we know it.
I use this time to educate myself. I have bought several books and I am planning on buying some more in the next weeks.
But why is this the investing opportunity of a lifetime? Isn't the stock market falling down every day, aren't the business closed now and everyone is working from home..???
As Warren Buffet says: Attempt to be fearful when others are greedy and to be greedy when others are fearful.
Four opportunities of a lifetime:
In our lifetime we will have four or five great business cycles where we can profit from. This means we are able to buy the business that we like so much at a discount from where it was several months ago. Think like you are doing your shopping. You love steaks, this week steak is at $5,- a pound, that's a lot for a steak, now you wait a week and you see that the same steak is selling for $2.50 a pound. What do you do? You buy it!!
The same goes for the financial markets. Over the last weeks the markets have been in a selloff and no market has been speared. Reaching 52 year lows in weeks after the 52 year highs. With different markets and sectors declining from 25% to 75%. So how do you like your steak? 25%, 50% or 75% off?? It is all up to you.
When to buy?:
This is the most difficult question you can ask. No one knows where the bottom is and what the markets would do the next day. Specially when there has been so much selling going. Don't try to time the market. 9 out of 10 times you will miss the boat and loose on your investments. So when is the best time to buy? For now my prediction is once we have reached the maximum amount of cases with the Coronavirus. Once the new cases are declining we will see an possible end coming.
There is no best time to buy, it is all dependent on your financial goals and investment goals. Do you invest for the lang term or are you a short term trader? By knowing what your financial goals are and your investments goals it is easier to understand when you need to buy.
My investments:
So for me I have clear and easy investing strategy. I invest a specific amount each month in different stocks for my retirement. I am 28 years old and I want to have a save and financially free future. I choose which stocks I would like to invest in and I make sure my portfolio is up to date.
Because I invest each month I get the highs and the lows. This means that over a specific point in time I have leveled out my portfolio and get a greater decent return on my investments.
Example: I buy $100,- of stocks of company A at every 1e of the month. So this month company A is trading at $10,-, now I can get 10 stocks of company A, Next month the company is trading at $7.50 I can get 13 stocks and so does this go on.
Also I saved up cash for these downturns in the market and I can deploy it when ever I need to. If I can find great companies for a discount price I can add it to my portfolio and grow even further in my financially free future.
What to buy?:
I am not a financial advisor or expert trader or investor. I am just starting in the market and want to share my experience, successes and failure with you, and I hope you can learn something from me.
To find out what stocks to buy and how to know if the stock is trading on a discount I suggest you to read the book: 7 secrets to investing like Warren Buffet. I'll leave a link at the bottom of the blog.
It is a great book and it would guide you in your first steps with investing. A must read.
Thank you for reading, stay save and stay invested.
See you next week,
Franklin, Moments2Success
https://www.amazon.com/Secrets-Investing-Like-Warren-Buffett/dp/1982130334
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