3 ms·

indeed. i invest my own money, have had success even through this down market, and i only follow one simple rule: i invest only in what i personally understan

by noodle 18y ago

indeed. i invest my own money, have had success even through this down market, and i only follow one simple rule: i invest only in what i personally understand. i learn about a company, see that they're a good investment, understand what my money is buying, and then decide on whether to invest or not. if i can't figure out where my money is going or what its doing, i don't invest. simple. i refuse to put it into a black box or have any black magics performed on it.

maximilian 18y ago
This is very closely along the lines of what I have been thinking a lot about lately regarding investing. You are basically betting that a company will not go bankrupt (when the stock is worthless..). The rest of the price fluctuations are just people's opinions. If I buy stock in companies I know nothing about, how can I possibly predict how well they are doing against the competition and why they are not going to go bankrupt. I think there is a place in an investment bank for quantitative analysis, but not for the regular investor. Most of the formulas they give are pretty shoddy anyway. When I have money to invest I will probably buy a big ol' index fund, which is like betting on the US economy, which will (hopefully) always be doing well. I might also then invest in a few companies that I know, understand, and really like.