This is an investment Blog. You may have heard the term – Keep Your Powder Dry.
This Blog addresses what you should do with the painstakingly accumulated Dry Powder.
I tell my young friends who just starting out on their careers – to start saving their hard-earned incomes.
When the market crashes, go shopping for bargains.
Cash Is King. Always.
May you stay focused on your savings, do not pay attention to sparkling worthless distractions (above image).
Save for a rainy day and/or for a Black Swan.
Make a killing when the Black Swan finally arrives.
Buy when the next Black Swan arrives, taking people by surprise. You, on the other hand, have been patiently waiting for this moment to make some clever investments.
Don’t listen to people who tell you your money is better off at investing in stocks. Chances are that you’ll lose money in the stock markets.
Best to keep money in the bank (the interest rates these days are pretty decent – (3+/-%). Not forever but till the market corrects itself.
Making a measly 3% is much better than losing half or all of your investment due to “hot tips” from friends.
Speaking of hot tips, famed 1920’s investment great Bernard Baruch was famous for selling out a stock position as soon as someone gave him a hot tip on it. Baruch died a very rich man.
Save your money (financial arsenal) till the next Black Swan arrives, then shoot it down with your substantial saving pool.
While you’re putting your money in your savings, you’re hopefully also looking out for good investments. Then when the Black Swan suddenly arrives and plunges the investment prices, go shopping.
But before that, you would have done your research to search out which are the company stocks with great compelling products or services, great management team, great current/future product/service offerings etc. etc.
Gravity sinks the bloated prices.
Make Gravity your Friend!
But be aware, there are fellow-bargain hunters like yourself, who’s also been saving too, on the quiet. Chop Chop! You snooze, you lose!
Do your homework!
Patience is a financial virtue!
