What preparation do you need to start investing?
“The most important quality for an investor is temperament and not intellect.” Warren Buffet
Pay yourself first
- Keep expenses low
- Build the Asset column first
- Don’t get into consumer debt in the first place
- Personal Self-discipline
- Develop Management Skills
- Cashflow
- People
- Personal Time
- When you come up short, let the pressure build
- Avoid dipping into savings/Investments
Master a formula (Derivative trading, How to buy Real-Estate foreclosures..), then learn fast a new one.
Investing
- Money is made on information
- Choose knowledgeable Friends Carefully – the power of association
- Purchase when it is not popular
- Surfer mindset – Patiently waiting in position for the next wave
- Profits are made in the buying
- First question
- How fast do you get your money back?
- Indian Giver – Power of getting something for nothing
- Move money IN for a short period ( week/Month) while the stock moves up
- Pull the initial amount OUT
- Stop worrying about fluctuations
- Move the rest of the money to another asset
- Look at the assets you get for free once you get your money back
- Limit, Low risk
- Upside – “Something for free”
- Stock shares, Mini-storage, Houses, Office Buildings, Pieces of free land
Compound interest is the eighth wonder of the world; he who understands earns it. he who doesn’t pays it – Albert Einstein
Pay your professionals well
- The services should make you money
- Manage and reward people who are smarter than you in some technical area
- Broker
- Salesperson
- Eyes and ears in the market
- Saves Time
- Find a broker who has your best interest at heart
- Provides valuable information
- Accountant – Interview:
- Do they mind their own business?
- What percent of taxes do they pay?
- Find how much property or stocks they personally have
An investment in knowledge pays the best interest – Benjamin Franklin
Inspired by RichDadPoorDad