@CainPrice I would rather teach you and others how to fish than to give you a fish.
@CainPrice I would rather teach you and others how to fish than to give you a fish.
@enfier Also thanks for calling out the concept of price and value, this concept is the underlying principle for all of value investing and it's what we call "Margin of Saftey". Basically what the value investor does is to try and find bargains in the market hoping to find and buy companies that are undervalued - where price is lower than the calculated intrinsic value of a company. This is ensures that the investor buys with a margin of saftey to reduce his/her risk of being wrong.
Speaking of risk, in value investing, we do not believe that risk = volatility as wall street and many in finance like to believe. We are too long term oriented where volatility does not matter in our decision making criteria. It only matters when it can give us bargains in the markets.
@enfier This is assuming you're going to invest in America where equities and assets are all too overvalued at the moment. If you go and invest in Asia-Indonesia, Singapore, Vietnam, Hong Kong, China, you will find that they still have tremendous amounts of bargains. However I will admit even in Asia, the bargains are getting exponentially less and less as most stocks in Asia like America are becoming too over valued. This is why I mentioned I am holding about 85% of my portfolio in cash waiting for more bargains(a crash/recession to take place).
Also don't invest in the index in the mean time, it's an absolute bubble. I would daresay that index investing is one of the largest contributors to the the huge market inefficiencies( discrepency of value and price ) today. This is why you get so many famous value investors such as Michael Burry (he shorted the 2008 housing market, most of you should know him from Big Short), Seth Klarman, Bill Ackman are all criticising the index. Index investing are boosting up prices of a lot of these blue chips to where they're so over valued that their prices just do not make sense. Better save your money by holding cash right now waiting for more bargains to appear from a crash/recession.
Read More@flyingpandaz Just in case I blink and miss the recession, make a big-ass post that says "Hey everybody! Invest now! And I highly recommend the following little-known Asian stocks. Here's a step-by-step of how to buy them."
Girl advice is fine and dandy, but if somebody told me something that actually made me any significant amount of money, I'd probably buy that guy a bottle of good bitcoin scotch.
@CainPrice I will give an in depth explanation of my value investing process and decision making framework on my "Investing" tribe the next few days, this way you can follow the same process to get up to a portfolio of a million dollars. Be sure to join the tribe.
trp.red/tribe/investing/
@CainPrice Wonderful question. I assume you're from the US as you mentioned 401k and I can't help you with that as I am from a different country. My suggestions will always remain the same to anyone seeking to be a millionaire:
@flyingpandaz So let's say you're a normal average employed guy in 2019. You work a W-2 job for a decent salary, get insurance through your job, put enough into your 401k to get maximum employer matching, then take the rest of your paycheck home. Most of that paycheck goes to your monthly expenses, but you still bank a little bit if no unexpected expenses come up.
What should the average guy be doing to make a million dollars in 5 years like you did?