Why is investing so confusing for most people?
The world of investing is very confusing for people, because the very word “invest” evokes countless different meanings for people. For some people, “investing” means buying mutual funds. To some people, the word means buying common stocks, preferred stocks, blue-chip stocks, technology stocks, small-cap stocks, bonds, or currencies. For others, investing means buying commercial real estate. For others, investing means buying residential real estate. Without beating the dead horse here, the point is that there are many avenues you can take as an “investor”. However, I think we should listen to Warren Buffet’s words again on this subject. Warren once said, “Don’t diversify. Put all your eggs in one basket and watch that basket closely.”
My friends, there is not one person on the planet who is truly a guru of all sources of investing. There are many different investment products, strategies and procedures, but you only have one life. Choose the path that is best for you.
Additional confusion caused by too much Moron media talk
Today we live in a time where we have over 200 TV stations to choose from and each station is determined to have 24 hour programming, even if it means having POMEGRANITE-FISH-OIL-INFO-MERCIAL all the time. In this busy world, Fox News, MSNBC, CNN and other news stations feel it necessary to warn you and me of all the potential threats that we may face at any time. I spent my childhood without wearing a helmet, and you?
As the media digs for news, they just go out and get these so-called experts saying unbelievable statements like, “The market is very overextended right now. I anticipate 8 months of contraction followed by a double dip recession. However, with With oil prices at record lows, this could offset the market slide enough for foreign investors to get back in the game, which will prop up our currency against the EURO. This changes.”
What the hell is the media talking about? Is Warren Buffet saying these things? Is Bill Gates talking this nonsense? Q. Diddy or Lebron James are saying these things? The answer is no.” No, they’re not saying this because they’re too busy seizing opportunities and making money to take time out of their schedule to listen to the pinhead/investment expert/retired professor at the University of I-have-en I’ve-never-actually-left-campus-or-run-a-business-in-my-life-yet.
I always hear people at social gatherings say things like, “Hey, you know what the next hot action is going to be?” Dude, by the time you and I find out about the hot stock, it won’t be hot anymore. Create your own hot broth. Make your own initial public offering, don’t go after the crumbs from inside investors.
Most people use the word “invest” to refer to the justification of irrational purposes.
Have you ever seen someone try to justify buying a new vehicle in order to save 4 miles per gallon of gas? Have you ever seen someone trying to convince you that his house, which he will pay for twice after all his interest is paid, is a good investment? What about this one? Have you ever heard a middle-aged woman justify a complete remodel of her entire house to “improve resale value”? Have you ever done the math in your head in any of these scenarios? My friends, these “investments” are not investments. These expenses are irrational expenses. If they bring you pleasure, that’s fine. But don’t call them a good investment because they are not.