Last week I attended a meeting sponsored by one of our investment advisers, Jerry Ask. The speaker was from American Funds Des Moines office. He gave the most interesting presentation I’ve heard at these meetings. As a result, I took a small page of notes, which I’ll share with you here in the hope that you find them interesting, too.
Investment Gain vs. Loss
Progress (gain) happens gradually over a period of time. Losses happen suddenly and are therefore quite noticeable and newsworthy.
We need to look at our investments over a relatively long period to observe the gain. To see the loss, we need do nothing other than tune in the evening news!
Investing in Companies
Some might say, “The economy is terrible!” That might discourage some from investing.
However, we generally don’t invest in “the economy.” We invest in individual companies, each of which may react very differently from the general economy.
Oil
If Texas were a country, its oil production would rank the 8th highest of all countries!
Good News vs. Bad News
Rarely does the world come to an end. Next time you’re having problems, perhaps even thinking things are hopeless, remember this truism!!
Advice: Don’t predict rain. Build a good ark! It’s very difficult to accurately predict rain —or gains or losses in the market. Most advisers suggest that we not even try. Instead, create a good portfolio of assets which will provide the desired results regardless of the market, one which will ride the waves.
Be a student of the good news. We should seek out the good news. We know it won’t be on the evening newscast! Bad news will always find us, so we need to concentrate on the good news.
Looking for a Stock?
For investment ideas, Google “innovative companies.” That’ll give thousands from which you can pick ones you feel will be wise investments.