On 23rd February 2011 for the first time we had shared a value research report with fellow Happionaires, after 2009, on a particular company that has immense future potential and the prices are down temporarily due to certain problems in Libya. (Invest In Oranges When Pests Attack) Now this company might have gone up 10% since then - but does that mean we should stop investing in it?
When it comes to investing there is a small story which I will share. It will help us learn a lot about situations like above.
Once there was a man who lived in a small village, he wanted to buy a small piece of farmland to grow some vegetables and fruits on. He first started looking and a wise village elder, showed him a small piece of land that the seller wanted to sell for 100 gold coins.
This man, liked the land, but like all of us wanted a better deal, so he started negotiating - he wanted it for 90 gold coins. Finally after a lot of negotiations, seeing he was a genuine buyer, the owner agreed to sell the land for 90 gold coins. Now instead of buying the land for 90, this man decided to negotiate even more and started saying that he now wants to buy the land for 80 gold coins because he feels the soil is not all that good. In the end the seller and buyer couldn't reach and agreement and he was unable to buy the land.
The owner for a fact knew that in the long run this land would have given him very good yield and appreciation - yet he was being stingy. After a year, he still didn't have any land and after a year the price was 120 gold coins. Now once again - should he buy or not? If he wants farmland and that is pretty much the market rate - and he knows he can make good returns, should he lose out on time?
How many time the same thing has happened with so many people around us - irrespective of whether it is investing in stocks, real estate or commodities? People think that they will get it cheaper - by 5 or 10% only, without thinking about the long term. We all have a tendency to be this way, but as a Happionaire investor I have learnt that it never helps to be a stingy investory. We might think we are saving 5 or 10% but in the long run, we miss out on the growth. If we know an investment has the potential to reward us 100 -200% - what difference does 10-15% make here and there?
I would be interested in knowing experiences of fellow Happionaires too - when it comes to being stingy investors. We have all been this way at some point of our lives, but thankfully we learn. Don't look only at the monetary cost, but also the opportunity cost in terms of time. As they say today is the first day of the rest of your wonderful life - so do what you have always desired to do, rather than worrying about what might or might not happen.
Have been busy with a lot of interesting stuff. Can't share it all yet - but will share soon. The world of investing keeps getting more and more exciting.
Keep your eyes on silver and gold prices, and if you still haven't invested - it still isn't late. Lots of internal battles going on between international funds, banks and people holding physical gold and silver.