I think the most significant global economic event to happen in the last 7 years is about to happen in two weeks. Our economy will start the transition from a sugar based diet to Popeye’s spinach based diet.
You will read a news headline “Sell Everything Now”
Here are three key steps, then you’ll succeed.
1) Doing nothing based on news headlines… makes you a better investor.
2) Buy things you understand.
3) Develop temperament, which would permit the control of fear and greed.
I will never forget something my grandfather told me, I was 13/14 years old and painting a house with him in Vero Beach. He looked up from what he was doing and said to me: “Buy things that you understand”.
That was it, well that and “don’t paint yourself into a corner” …because I was painting a floor and then I had to sit there until it dried.
“Anyone who has become rich twice is dumb. Why would you risk what you need and have for what you don’t need? If you are already rich, there is no upside to taking on a lot more risk, but there is disgrace on the downside…” – Warren Buffet
Word of the Week “Undue Risk”
Undue Risk: putting money into an investment vehicle that you don’t fully understand and you will need the money back quickly.