Why do we invest? The main reasons is that we forgo current use of resources for the potential of more in the future. Many new to investing are focused on making a quick return. This of course, would be nice (to get rich quick) but often people get poor, very quickly chasing this goal. A time-tested strategy in the stock market is by value investing. We all hear about the great legendary investors, Warren Buffett, Charlie Munger, Benjamin Graham, among many others. They all have their own investment intricacies, but when it comes down to it, value is at their strategies' core. So why not enjoy life, while making a solid return? … [Read more...] about Why SleepyCapital?
Archives for April 2016
I recently read An Astronaut's Guide to Life on Earth, by Col. Chris Hadfield. If you haven't read it yet, I highly recommend it. It's one of those books that anyone could read and apply the story to their own life. The book is an insightful story of Chris' journey to becoming an astronaut, and his experiences while being one. It truly is amazing how much time, strength, and diligence went into his own work. He loves his job, but even more than loving the job itself, he loves the process of preparing for his job. We can all learn from this book and apply it to our every day life, but also of course, as investors. Below are a handful of great quotes I pulled from the reading: "To me, the only good reason to take a risk is that there's a decent possibility of reward that outweighs the hazard...I accept the risks of being an astronaut, but with an abundance of auction: I want to understand them, manage them and reduce them as much as possible." This is as close to the definition of making an investment as it gets. We are seeking asymmetric bets, where the possibility of reward far outweighs the risks. We need to understand our investment decisions, the risks behind them and try to manage them. "As I have discovered again and again, things are never as bad (or as good) as they seem at the time." This is something we all see every day, in the news. It's one of the reasons our emotions gyrate from highs to lows. The media, as we know, often blows things out of proportion. When listening to the media covering the markets, they are all stretching for good stories, covering companies' recent earnings, quoting prices continuously. My approach is to stop listening to limit your reading to a few good sources and to maintain an open mind to anything you're reading. Like Chris says, things are never as bad (or good) as they seem at the time. "As we work through huge checklists...I go through my checklist" Checklists are something investors often use, whether … [Read more...] about An Investor’s Guide to Life on Earth: Part 1