The key to a good return is to buy at a bargain price, the time value of money. Also, as an entrepreneur, you must diversify your sources of income and not get trapped in a single business. This is also true for investors.
The market is so competitive that there is no point in holding onto a stock that you are losing money on. Also, the market is only as good as the information that you supply to it.
This is also true for investors. The idea that you can do better by buying a stock that is currently discounted is a fallacy. It’s a short-term approach that will only bring you to the table one time. Instead invest in a diversified portfolio of stocks that are likely to bring the same type of return you are hoping to receive.
If I had to pick just one of the top ten stocks in the market today, the stock would be the one that’s most likely to bring the greatest returns in the next few years.
The investment market is a complex environment. It’s a time-locked economy with a lot of investors in it, lots of risk, and the risk a market will bring to the table is not worth investing in.
Stock prices are based on the number of shares sold, so there must be a lot of shares that do not sell, either. If your stock trades at $1.00 per share, it’s a pretty good portfolio. If your stock trades at $1.25 per share, it’s not a great portfolio, either.
For the most part, capital markets are very smart and can be very profitable. But they do have a very narrow window of opportunity, and they can lose a lot of money if they don’t. That’s why most investors avoid them at all costs. The problem is that the investments that you make in the market will not outperform the market itself.
Capital markets can be very profitable when they are correct. For example, in a stock market, you will see that the value of the company will take a beating as people sell, but its also going to take a beating as the company gets acquired. But if the company is performing well then you can get a lot of value from buying it. But if the company is going to go out of business, then you will lose a lot of money.
You can get the same sort of profit by investing in a company that has a bad run. For example, if the company is making the wrong decisions, and it is starting to lose money, then you can be making money. But this isn’t very efficient. Instead of paying out $50,000 for a bad stock, I would rather make $5,000 to invest in a good company.
The basic rule of the capital market is that you can’t just make a lot of money and then stop. In this case, if you invest in a bad company, you will lose all of your money. There are a bunch of reasons that companies go out of business, and you can only make money from investing in companies that are still going strong. But that doesn’t mean you have to.
