Dumb with Money

Now this is one place where even extremely savvy individuals get taken for a rid.  We get get dumb when buying stocks because we get taken by either the people pushing a stock, the brand image, or personal experience.  This is your money, make informed decisions or don’t get into the market.

Never, Never, Never put any money into that market that you can’t afford to lose.  You need a solid investment strategy before you put any money in the market.  Many people think in terms of companies, not it terms of strategy.  This is where we get taken.  My strategy is simple:

1. I only invest in companies that have a ton of cash on hand.  That way if the next big thing comes out that can cripple their business, they can buy it.  And even make me a profit because of it.
2. I only invest in companies that are not going anywhere.  It doesn’t matter if we’re fueling our cars with water, gas, or rocks…  Babies are going to still need diapers and tooth paste. Hello Johnson and Johnson. 

Strategy #1- I feel this is a key to any strategy, seeing as there has been a huge wave of corruption and break throughs in techonology.  In today’s world, you don’t know if your company will be here next year.  This gives you a little piece of mind that they can handle most situations.  Money talks.

Strategy #2- This is more of a personally preference. I feel if you want to gamble, call Vegas.