A thought concerning stock investment

[Beronir]

When you invest your money to Wall Street, what do you usually do?
It is quite surprising to see many people are still pumping their money into some companies which they have never seen.
Then, they just chuck THEIR company's stock to trash bins when the price goes down.

As an entrepreneur, I believe the FASTLANERS should have a different mindset.
Imagine you own the company.
If there comes a crisis, would you give up your own company?

My thinking is, that we should invest our money as if we are PURCHASING the company.
We could achieve this level by visiting the company sites, investigating financial statement, seeing who is working at the company, and so on.
It requires the same process as buying one of what we call the SYSTEM.
If the price goes down, we can go to the company and insist on an opinion as one of the OWNERS.

 

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[Rawseed]

Investing in the stock market isn't fastlane because you don't have control of the company you are investing in.

Tim Cook could care less what I have to say about Apple.
Jeff Bezos won't answer my calls about Amazon's direction.

Visiting company sites and investigating financial statements is like reading tea leaves. Good luck with that.

There are exception to this.

In Unscripted Chapters 25 and 33, Demarco talks about activist investors like Warren Buffett and Carl Icahn.

To these kinds of investors, buying stocks can be fastlane because they have some form of control.

 

[Quirk]

Visiting company sites and investigating financial statements is like reading tea leaves. Good luck with that.

Couldn't agree more.

My exception is "ground floor" investing, like a dock worker observing oil tankers floating above/below their water lines to gauge real oil supply, a plumber noting copper piping is almost obsolete and sells FCX, a farmer that knows a drought's coming and will cause grains/meats to soar...etc.

 

[Beronir]

To Rawseed
Yes. Being able to control is quite an important factor as a Fastlaner.
However, once you build a SYSTEM, spending time in the company can be a waste of TIME.
If the company does not have any problem, as Warren Buffet said, holding it forever can be a good option.

 

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[Rawseed]

To Rawseed
Yes. Being able to control is quite an important factor as a Fastlaner.
However, once you build a SYSTEM, spending time in the company can be a waste of TIME.
If the company does not have any problem, as Warren Buffet said, holding it forever can be a good option.

I don't really understand the logical progression of the above statements.

Or how the above statements relate to your original post.

 

[Beronir]

To Rawseed

If you successfully established a company, you would not have to visit your company frequently.
Since you have the employees you trust, and they do all the work for you.
The money just rolls into your bank account.
That's a kind of system you built.

It is the same theory.
If you bought a stock which you have complete trust, you would be able to leave them to work instead of you.
To reach this level, you need to know the name of every single employee in the company, and the weekly, annual, and monthly financial plan, and their long-term vision.
Then the company of your stock can be the same as your own company.

In addition to that, stock investing can even be less risky compared to running a business.
If the situation is getting worse, you can easily take your money out.
What do you think?