Monday, December 24, 2007

Investment wisdom

It is better to lose an opportunity than to lose money.
Wow, this is far from intuitive for me.

I was raised on "Opportunity knocks but once" and phrases of that ilk. Lately I have been studying new approaches to investment management, based mostly on being honest about the results I have achieved with the results I manage myself.

I have bought thousands of dollars worth of stock based on a couple of comments and some cheerleading by people I do not know, and then I have not had the sense to sell when the price drained painfully downwards.

There is much I do not know about investment management, but I am dedicated to learning. The first thing I have learned is that there are always, always more opportunities. The fact that I have heard about some gold stock or tech development is just a fluke; for every opportunity that I hear about, there are thousands of others, whether in the stock market or real estate or eBay or wherever, that I have not heard about.

Performance problems usually have their roots in one of two areas: Willingness or Ability.

The challenge for me is to learn to evaluate the opportunities, not just bite like a hungry fish at some bait that happens to float past. And beneath the ability to learn, is the foundation of willingness to wait.

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