In Discussions, Investing, Money

Investing Series: Is investing partly a crapshoot?

This is a part of the Investing Series.

————————————————-

It kind of is.

If you take into account the following:

  • Calculations can vary from one firm and person to another based on what numbers they use
  • Media plays a big role in investors buying more or less due to fear mongering or greed
  • So-called professional analysts at investment firms post reports on a company but really have no clue whether they’re right or not

…it can all seem like a big scam.

The market is based on what investors feel. Investors are human. Humans are irrational.

Following that line of logic, we have to basically bet in a market of irrational people who can’t see the forest for the trees, and listen to “professional” people who don’t know either.

Look at Apple for instance. It was down in the dumps, and then came roaring back with the iPod.

Plenty of people wrote about the death of Apple and couldn’t figure out how the company could last THIS LONG, screaming that they should just throw in the towel.

Or look at Starbucks.


I’ve been reading Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time (a fab book by the way), and many analysts predicted the death of Starbucks in the 1980s.

No one thought anyone would pay more than $0.50 for a cup of coffee!

They also thought Starbucks couldn’t make it, and predicted they would drop to $8 a share, etc etc.

Today? They’re at $62.00 a share or so.

Goes to show, doesn’t it?

This is why you need to do your own research, listen to your gut, and invest in index funds (or the general stock market) if individual stocks are too bumpy for your stomach.

Share Tweet Pin It +1

Sherry of Save. Spend. Splurge.

Am my own Sugar Daddy. Am a millionaire at 36 after getting out of $60K of student debt in 18 months, a little over a decade earlier, using TheBudgetingTool.com. I have worked 50% of my career (taking 1-2 year breaks), and quadrupled my income within 2 years of graduating, going from $65K to $260K with an average lifetime savings rate of 50%. I have 11 side incomes that are on track in 2020 to make me $50K - $75K. I could retire today if I wanted, but love my work-life balance as a freelancing consultant in STEM (Science, Technology, Engineering, Math). I am all about balance - between time and money, and also enjoying my money. I also post daily on Instagram @saverspender.

You may also like

Who are the Billionaires of the World?

Posted on January 24, 2013

Previous PostAugust 2013: What I bought, watched and read
Next PostFavourite spots in Toronto to eat at, shop and go to for essential services

2 Comments

  1. Jane Savers @ Solving The Money Puzzle

    I listen to my gut and just made a decent profit selling Shopper’s Drug Mart and Maple Leaf Foods. The big profits were almost a fluke and were because the management of the 2 companies made some company changing decisions that will drastically change both companies.

    I do trust my gut and nothing was calling out for me to make a purchase so I went with a Vanguard ETF with the sale proceeds. Boring and predictable but it pays regular dividends.

    Reply
    1. saverspender @ save. spend. splurge.

      And you don’t need to stress out about it. You made a good choice.

      Reply

Leave a Reply

In a nutshell…

Save. Spend. Splurge.
[ wealth. style. minimalism. ]

——

MOST DEBT: cleared $60K in 18 months

MONEY: Hit $1M personal net worth At 36

NEW GOAL: $1M in invested assets

FAVOURITE DAY: payday

HATES: being late & lazy people

SOCIAL: Instagram @saverspender

DRINKS: homemade matcha lattes

SLEEPS: on a 100% cotton U.S.-made futon

WRITES: Books (also available on Amazon).

BEAUTY: swears by Paula’s Choice

——

…but you can read more about me , browse my index of posts, or get in touch with me, talk to me directly on Instagram, and of course, ask me anything here.

$35 The Wealth Building Tool

Like a Boss Library (Sherry’s Books)

Referral Codes

Free Money Surveys
[ Use this link ]



Webhosting
[ saverspender ]



Shopping Cashback
[ Use this link ]



Clothing Resale


[ SHERRYISH ]



Private Lending
[ 7b03f0 ]



No-Fee Banking
[ 32726976S1 ]



Discount Brokerage
[ o0soehds ]



Social media scheduler
[ saverspender ]



Blog Ad Network
[ Use this link ]



Disclosure

Save. Spend. Splurge. uses affiliate links from Shopstyle, and Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com or ShopStyle. In addition to these, any referrals on the page will result in revenue if used such as BlueHost.

In English: If you click on a link, I could get a small commission, typically a few cents. And if you use a referral code, I could get anywhere from $10 – $70 for it. Thank you for your kind support!

Also, I am not a professional investment advisor or money manager by any means.

I am just a woman who loves money, talking about money, and making money.

All opinions expressed on this blog are personal and for entertainment value. Take them with a grain of salt and always consult a professional when in doubt.