Ponaučenie pre investorov od agenta CIA

Ignorance is Costly .

Humility and lack of understanding reality are all too often missing in the lives of investors. How often are we shocked by the unexpected, such as this past summer’s collapse in the mortgage and credit markets, and its ramifications? Could we not see the real estate boom was too good to be true and had to come to a bad ending? If we had studied Austrian economics, we would know that inflationary booms are unsustainable and require a bust.

What about China? If we study the history of emerging markets, we know that booms inevitably turn into busts. Should we not be surprised that after the Shanghai stock index rose 400%, it would fall by 40%-50%? The smart investor uses trailing stops to protect his profits.

How many of us take the time to study the history of Wall Street and the inevitable cycles of greed and fear? How many of us learn by sad experience that stories that are too good to be true usually are just that. We eventually get burned by investing in "sure fire" penny stocks and tax shelters.

There is also the problem of pride. Investors and money managers who have doubled or tripled their portfolio that become "know-it-alls," thinking that beating the market is easy.

A few years ago, a hedge fund manager I know had several years of superior profits, and become highly conceited. He wrote a book about his exploits, full of colored photographs of his expensive lifestyle. But as the old saying goes, pride proceedeth the fall. A few years later, he made a series of blunders in the marketplace, and his accounts blew up. He was forced to declare bankruptcy.

Don’t let it happen to you. "The used key is always bright," says Ben Franklin. Keep informed and know the signs of the times. Stay educated. Attend conferences and keep up on the financial news. And always remain humble, knowing that you never know what’s around the corner.

Zdroj: commodityonline.com

22.12.2007