Schizophrenic Partner

“Every day he tells you what he thinks your interest worth and futhermore offers either to buy you out or to sell you an additional intreset on that basis. Sometimes his idea of value appears plausible and justified by business developmens and prospects as you know them. Often, on the other hand, Mr.Market lets his enthusiasm or his fears run away with him, and the value he proposes seems to you a little short of silly”

“The intelligent Investor”
by Benjamin Graham and David Dodd

Ladies and Gentelman, let me intruduce to you Mr.Market.
Your partner in investing that suffers from Schizophernia

The reason i’m writing these words it’s because of my willingless to illuminate and shed some light about the cryptocurrencies that are skyrocking to all time highs in the first half of the year due to nothing but high hopes for the future of these Currencies and let’s wish those hopes are not a fairy dust, because people are going to lose their money if they are.

Wall Street is all about TIMING, by examining the numbers you can spot a good business, and if you have the right tools you could also know if the shares are selling at a good price.

But let’s be rational, NO ONE CAN time the market.

“Number one rule of Wall Street. Nobody… and I don’t care if you’re Warren Buffett or if you’re Jimmy Buffett. Nobody knows if a stock is gonna go up, down, sideways or in f*** circles. Least of all, stockbrokers, right?”

My favorite qoute of Mark Hanna (Matthew Mcconaughey) Wolf of Wall Street.

You can only know what is going to happen in the long run for a good business, and in the long run if you bought the stock in the right price it’s going to go up, as Warren Buffett says: “If a business does well, the stock eventually follow”

If you take a look at the cryptocurrencies for example (Bitcoin or Ether), they are reaching all times highs and they are getting crushed in a mid-day trade perhaps everyday. they are SO volatile. i usualy don’t jump into those trades because you can’t realy know what’s going to happen, i can’t point to the next five or ten years and say : “Okay we are going to have this Cryptocurrency used by all of the goverments or by the banks (In this case it will reach new highs and grow in its value, people who bought that Cryptocurrency would be LUCKY), or it might be the other way around and then this Cryptocurrency will get crushed and have no value.  In my point of view it’s only a speculation and i will write about that in my next article to explain what are the differences between speculation and investment.

But for me it’s more easy to look at a company let’s say McDonald’s, KRAFT HEINZ, Coca Cola, if you ask me they all have some “MOAT” around them, It’s easier to point out for the next five or ten years and and try to figure out what they are going to be worth, because it doesn’t matter how much we are going to advance as a human race, everyone would like to have a Ketchup or some sauce (Kraft Heinz) with some of their meals or drink a bottle of Coca Cola with it, or go and have a McDonald’s every once in a while. i’m sure that trends will effect those stocks, no stock is invulnerable but it’s easier for me to “predict” what the futrure holds for those company because those thing i can realy understand.

Don’t be greedy, and don’t get cought in the Euphoria that everything is going to go up, it’s your money and you worked hard for it, if you have some extra money and you see or know something that i don’t, it’s okay to speculate according to it but only with your extra money, but don’t get it out of proportion, especially not because someone is having a higher yields than you are. stick to your own investing dogma and don’t get caught in the trends that your Schizophrenic Partner Mr. Market is offering you.

Disclaimer:

Don’t treat any opinion expressed by me as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of my opinion.

 

 

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