If this week hasn’t gotten you thinking about investing in the stock market, I’m not sure much will.
With the recent market volatility (movement) now may be a good time to start thinking about investing. One of my favorite quotes is:
“Be fearful when others are greedy and greedy when others are fearful” – Warren Buffet.
It reminds me of being a kid. When we are kids we grow up learning what we should and shouldn’t do. We hear things from our parents such as, “don’t make the same dumb decisions I made when I was your age and learn from my mistakes.” Got it. So be a perfect child and don’t make any mistakes right? Although, parents give sound advice, it becomes extremely hard to listen to parents when you are young and think you know better. We think, “well this time is different” or “just this one time.” But what happens? We make the exact same mistakes our parents made, even though they specifically told us why not to do it.
But this doesn’t apply to us when we invest right? Even though we hear what we are supposed to do, we get caught up doing the exact opposite because, like we were when we were children, we think we know best. We think we know better than all the other investors, no matter what MBA they have, amount of years they carry, or certifications they hold. We believe we are better than all those professionals who spend countless hours investing as their job.
The above quote is from Warren Buffet. One of the all time greats of investing. There is a handful of people who will listen to him, but the majority of people will become enchanted with the idea that they know better.
Are you still thinking about Investing?
If you have never invested before you may not know the emotional feeling. Investing can be emotional. It’s hard to see your hard earned money, that you saved and invested, go down. There aren’t too many people who don’t get worked up over losing money. On the flip side by investing, your money can grow without much work. The joy of seeing an account balance increase is a great feeling.
I can’t tell you when or how you should invest, I don’t know your situation. I don’t know your dreams, your goals or your intent for your money. I can tell you though that you should start to consider investing. Even if you don’t take Warren Buffet’s advice you may be able to reach your goals sooner rather than later.
Are you scared to Invest? Why or why not?
Investments are subject to risk, including the loss of principal. Because investment return and principal value fluctuate, shares may be worth more or less than their original value. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Past performance is no guarantee of future results. Talk to your financial advisor before making any investing decisions