Shopping For Investments When you do weekly shopping in a supermarket, if you continue to watch an offer to fill your kitchen? If the canned spaghetti is half price this week, will buy a few extra cans? Purchases of investment is equal to the purchase of spaghetti. We continue to invest to create wealth which can be spent in the future we remain in our kitchen, to eat spaghetti later. |
TWhen is the right time to buy an investment? Which one is cheaper. So, when a low stock price, it makes sense to buy more - right? Well, the logical, but humans are strange creatures. When it comes to buying an investment that seems to apply a strange logic. Instead of celebrating the fact that there are bargains to be had, we complain that the value of the "spaghetti" that we have in the pantry "has fallen. This is, of course, a problem if he intended to sell spaghetti this week, but it is reasonable to assume that this does not happen. What is evident throughout the history of sharemarkets is that investors buy more that prices go up, then panic and sell when prices fall. But logic tells us to do otherwise secret of wealth creation through investment in shares.'ll be able to withstand the emotional impact of price changes, to make a good investment for the right price and have a long term vision. |