“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction”. – Warren Buffett
Influenced by negative news of people losing their fortunes due to the stock market, I have always frowned upon the idea of putting my savings into this area of investment.
Before graduation from University in 2011, my brother stumbled upon a free stock investment preview workshop, and we decided to check it out. Of course, I was still cagey and skeptical towards the course and its intentions. Are the speakers intending to hard-sell some scheme to me?
At the preview workshop, many questions came up, and most revolved around these two:
1) “Isn’t it very risky? The market is so unpredictable…”
The trainer replied:
“Yes it is risky to invest, no doubt. But do you know how risky it is NOT to invest? The average inflation rate in this country is probably 5-7% on an annual rate. Thus, if you choose not to invest, your savings in the deposits account, which probably earn a meagre 0.1% at maximum, will be eroded by inflation, year after year”.
Sometimes, taking any action is a risk. At other times, he said, taking NO action is also a risk.
The other question posed was:
2) “I have known people who have burnt their fingers in the stock market…lost huge amounts of money”.
The trainer calmly replied:
“So you have known people who have lost money in the stock market, and so do I. However, I also know of many people who have become millionaires from investing in the stock market…and I have been learning from these guys who have got it right.”
“Whatever business/job ventures that one undertakes in future, there’s a good chance that others have already attempted them. Some people have failed, while some have succeeded. Stick close to those that have got it all figured out, and one will probably attain the same success”.
One thing led to another and eventually, after some time, the skeptical ME was logically convinced. I began studying the methods of value investing and fundamental analysis, and have been a practitioner of it since then..
I never looked back 🙂
Invest safe, Invest smart!