Its 2009 and we are currently in a Recession…apparently
I don’t know about you but I haven’t felt an impact. In fact I’m taking advantage of the recession. We don’t have stock market crashes every year after all. This is the perfect time to start investing.
Warren Buffet has quoted “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful”
99% of the population are fearful. They are fearful of losing their money while they extract their money from the stock market pushing the share prices lower for the other 1% of us to make money.
Take a look at the performance of shares over the last 20 years below and you will see what I mean.
You will notice that even the most recent stock market crash on October 19th in 1987 (Black Monday) is just a small blip on the chart. You would still have made a huge gain if you had invested on the day and held on to your stock long term.
I was also fortunate enough to invest in a property in Eastern Europe last year prior to the credit crunch taking hold. With the initial investment plus building work I have made a projected profit in terms of bricks and mortar value of 250%. That’s not a bad percentage considering the current market conditions.
So 2008 hasn’t been a bad year after all.
I have a number of New Years resolutions
* I will increase my investments in the stock market taking advantage of low stock prices
* I will increase my investment in gold investments
* I will increase my investment in domain names and utilize domain parking until I can dedicate enough time to fill the website with content or re-sell for profit at a later date
* I will focus on creating good content and sharing investment strategies online
* I will finish construction work on last years eastern european property investment ready for letting
* Keep a log of killer investment ideas in a diary ready for implementation at a later date
* Listen to people more. In 2008 Ive learnt that you can hear about investments simply from listening and observing. One good book that delves further into this area is one up on wall street by peter lynch. Grab a copy here.
* Look out for new companies that are starting to flourish. Companies that are attracting a lot of media attention but aren’t listed on the stock exchange yet. I can see some online companies sliding this year with people moving away from sites like facebook but signing up for new social media tools like twitter and yammer. If twitter is ever listed on the stock exchange please give me a nudge so I can buy some shares.
* Build up multiple income streams so Im not reliant on one source of income.
So when you next hear the media tell us that we are in a Recession dont become demotivated and fearful. Take heed of Warren Buffets quote and use the Recession as a means to increase your wealth.
I now am going to leave you with a few Warren Buffet quotes that I believe fit well with this article.
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
A public-opinion poll is no substitute for thought.
Our favorite holding period is forever.
Why not invest your assets in the companies you really like? As Mae West said, “Too much of a good thing can be wonderful”.