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Here are the best long-term investments in December:
Some of the most profound, insightful thoughts in business aren’t that complicated. Heck, a lot of them are clear as day. You might be surprised at how much you can take away from ibvestment as simple as a one-line quote. Let’s take a look at the first five quotes in this two-part series. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
The Best Investments of All Time
One of the best ways to secure your financial future is to invest, and one of the best ways to invest is over the long term. By thinking and investing long term, you can meet your financial goals and increase your financial security. You can opt for very safe options such as a certificate of deposit CD or dial up the risk — and the potential return! Or you can do a little of everything, diversifying so that you have a portfolio that tends to do well in almost any investment environment. In investing, to get a higher return, you generally have to take on more risk.
1. Apple Inc (AAPL) at IPO
Some of the most profound, insightful thoughts in business aren’t that complicated. Heck, a lot of them are clear as day. You might be surprised at how much you can take away from something as simple as a one-line quote. Let’s take a look at the first five quotes in this two-part series. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful. We all know how warm and fuzzy it feels to watch our stocks go up; that’s why we’re investing in the first place Alas, the human ego is a powerful thing, and it’s when we’re doing well in the market that we feel the most invincible, and when the market tanks that we feel like pulling all our money out, curling up in the fetal position, and screaming.
Don’t get me wrong. Trying to time the market probably won’t get you very far, but that’s not the point. If you take a long-term approach to investing, purchasing stocks that have been beaten down and appear cheap based on fundamentals — while having no expectations as to when they should start heading up — it will likely leave you sitting pretty down the road. Everything else is noise.
We’re constantly bombarded with endless amounts of trivial pieces of data for our investments. Untold amounts of wealth have been lost in the name of panic caused by complete overreaction to events that, in the grand scheme of things, don’t matter a hoot.
Back invalue investor Mohnish Pabrai began purchasing shares after the company had taken a beating when other investors were in panic mode, trying to get their heads around an array of factors, such as where the future price of oil was heading and when oil tanker rates would rebound.
Pabrai took a more simplified view and focused on something much clearer: the liquidation price of the company. By focusing his attention on the big, important factors while ignoring the noise around him, Pabrai was able to score a multibagger in just two years.
Keepin’ it simple has its benefits. Have the purchase price be so attractive that even a mediocre sale gives good results. Heck, nobody’s perfect. From time to time, even the best investors in the world make mistakes. It’s important you don’t set yourself up for a complete catastrophe when you.
The best situation you can put yourself in is when your investments offer such a large margin of safety that even if you don’t end up being rightyou’ll still turn out OK. It’s like playing Russian roulette with which was greatest stock investment of all time squirt gun. Every excessive boom in the stock market, whether it’s the entire market or an individual stock, seems to share this common characteristic.
People know prices are getting out of hand. They know every time this has happened in the past, people got burned. Yet investors can get caught up with the thought that this time, the excessiveness is justified and will be here for good.
We’ll never learn that we never learn. There you have it. Some of the shortest, simplest, and most reflective quotes by some of the greatest investors of all time. Morgan Housel cmfhousel. Updated: Apr 5, at PM. Published: Nov 26, at AM. Author Bio Morgan Housel is an economics and finance columnist for Fool.
Analyst, Motley Fool One. More Articles. Stock Advisor launched in February of Join Stock Advisor. Related Articles. DL Next Article.
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