Start Buying Sh*t…
Nov 29th, 2008 by jared
If you are like me and not a big time Wall Street investor, I have a strategy for you, start buying sh*t. I know some pretty savvy investors and not one of them could have ever predicted what is happening right now. They also have no idea what is going to happen. I have witnessed grown men cry and throw up their arms, completely at a loss for what is happening to their portfolios and their precious Wall Street. 
I found this report recently on The Business Sheet called The Biggest Losers and it basically gives you a breakdown of the top 20 global moguls who have gotten creamed in the recent economic collapse. Some of the smartest businessmen in the world are making horrible decisions, but is it their fault? Nobody could have predicted anything this dramatic going down.
So why am I telling you to start buying stocks?
Ever heard of beginners luck? Have you ever played poker and in your first “no limit” game you somehow walk away with 5x more than you sat down with? Poker pros get so upset when beginners win because they know the beginner has no idea when to hold them, or when to fold them. Beginners do not think too hard about a move they are going to make, and they certainly do not follow a specific play book. They just bet and hope for the best. I would say more often than not, novices walk away with a profit their first time out.
Aside from the well publicized fact that a ton of good companies have lost a huge portion of their market cap for no apparent reason, pros have no idea what to do at this point and it seems to me if you have some extra money to invest, now would be the perfect time to “go all in”.
In less than a week, I am up 35% on 4 companies. I got a tip here or there, but mostly went with my gut and invested in companies I like, and would continue to buy stuff from. I have this strange feeling in a few years pros are going to look at me with disgust; just like Hellmuth after taking a bad beat at the World Series.
Make some money and tell me about it.
Jared Reitzin
Small Business Entrepreneurship
The last word in your title could soon apply to tech stocks! Did you buy any Intel, Yahoo!, or Google–or lesser tech brands–in your shopping spree? I know they’re falling, but in these cases, I think it’s for a reason…
Hey Jared,
Funny thing - I also got the itch a couple weeks ago and pulled the trigger on Ford when it dropped to almost $1.00.
Now i feel like a day trader!
-Ryan
Ryan how have you done on it so far? I bought CitiCorp (C) very very low. Hit got hammered today but I think in two years it will be back to $20 per share. They are going to hurt in 2009, but I am hearing in 2010 banks will be getting money at 3% and lending at 8%, and they are going to make a bunch of cash.
Eydie I actually stayed away from tech stocks. I did buy one that is a billion dollar offshoring company with lots of cash and a bright future but that is about it. Google might be a good buy right now, it lost 10% today.
The main idea of it is understandable, but I still think their are some changes that would be required for it to work.
Thanks,
Tommy Vile,
http://www.VariousTopics.com
I have to say, there are a ton of people who saw this coming. They are in the school of Austrian Economics. Check them out at mises.org. I would say, listening to the very people who saw this from a mile away, a large payoff could result from buying gold and other commodities (fundamentally sound ones!) while they are still low. The Federal Reserve’s low interest rate after 9/11 created the large bubble. The fact that the Federal Reserve’s balance sheet expansion coupled with more bailouts and economic stimulus packages will further inflate the dollar (and at record amounts) makes me leery of US equities. We probably haven’t hit the bottom of equities yet.
Great tip. Couldn’t agree with you more, when the market is down, it’s a great time to get in the game.
Thanks Jack. Man I need to start blogging again, its just so time consuming. Was thinking of twittering because it is so easy, this is a good article about it: http://www.forbes.com/2009/03/11/social-networking-executives-leadership-managing-facebook.html
While most people will agree that now is the time to invest, in the back of their minds they still hesitate because of the doom and gloom news they hear everyday.