Stock Picking and Portfolio Management....
Alright this one is a topic where everyone wants to know the next Dell or Bitcoin. The easy answer is you can't really know. The only way you can know is if the industry is in its very early stages and there is a chance for it to capture a large amount of market share very quickly where no competitor can challenge their operations for a long time (measured in years). This is almost impossible to find in the age of quickly changing technology. Most of the companies on the SP 500 will not be there in ten to fifteen years. Mark my words. Unless they acquire companies that are cutting edge in the new techno boom or they do what Bezos has done and branch into AI. So what I am telling you is cherry picking is out in this new age.
Now should you be buying up shares of Amazon, Apple and Google. Well you can because they are the biggest players in their field. However that is precisely the problem. This does nothing to create competition and simply serves to make the rich richer. Just another form of it is all.
You have to ask yourself if these large companies are really a deal and if there is still tremendous value. You could make an argument that there is still tremendous value but you could have said that about Walmart 20 years ago too. Did it really do anything at all to help the people of the world or did it simply provide the lowest cost of goods while paying its employees next to nothing and making the Waltons rich beyond belief.
When you really look at the entire picture it is a flawed business model in a sense that it does nothing. Sure it was a good investment and sure it provided the best prices around. However that is one of the reasons why wages stagnated. I warned many people about this many years ago. I quite clearly stated that it was a deflationary business model and would harm the economy a lot more than it ever helped it. The company did just that.
What I am saying here is to reward companies that help distribute the wealth effect and produce products that clearly will help all of us rise as a human species. We are at a pinnacle where most of the other business models of the past make little to no sense. Where wealth is built as a collective whole versus making a few oligarchs rich beyond belief so they can buy up all their competition and make a corporate behemoth at the cost to everyone else. This is not healthy for any economy at this particular time.
When you are choosing a company or a stock look very carefully and envision what the business model will look like down the road say five to ten years from now. If you see that it is something that will continue to raise standards for humanity and add quality of life to everyone then you want to invest. If profits are the only criteria then you are doomed to keep tripping and stumbling along and maybe helping future generations lose out to income inequality.
Your portfolio matters not just to you at the moment but to everyone. It is imperative that you understand that intelligent investing involves everyone now and not just a few. You must look at the future with very clear eyes. See the potential that is there and follow the companies on the cutting edge of it.
In essence what I am telling you is not to do what most do now. "Don't sell out". Now is not the time to do that for a variety of reasons that all make sense. Stagnation and income inequality can easily be defeated with the right forms of investment. Jeff Bezos is no smarter than most of the other young entrepreneurs out there. He simply has the resources to make change. Keep that in mind next time to want to create another billionaire or behemoth corporation. Cheers!
Now should you be buying up shares of Amazon, Apple and Google. Well you can because they are the biggest players in their field. However that is precisely the problem. This does nothing to create competition and simply serves to make the rich richer. Just another form of it is all.
You have to ask yourself if these large companies are really a deal and if there is still tremendous value. You could make an argument that there is still tremendous value but you could have said that about Walmart 20 years ago too. Did it really do anything at all to help the people of the world or did it simply provide the lowest cost of goods while paying its employees next to nothing and making the Waltons rich beyond belief.
When you really look at the entire picture it is a flawed business model in a sense that it does nothing. Sure it was a good investment and sure it provided the best prices around. However that is one of the reasons why wages stagnated. I warned many people about this many years ago. I quite clearly stated that it was a deflationary business model and would harm the economy a lot more than it ever helped it. The company did just that.
What I am saying here is to reward companies that help distribute the wealth effect and produce products that clearly will help all of us rise as a human species. We are at a pinnacle where most of the other business models of the past make little to no sense. Where wealth is built as a collective whole versus making a few oligarchs rich beyond belief so they can buy up all their competition and make a corporate behemoth at the cost to everyone else. This is not healthy for any economy at this particular time.
When you are choosing a company or a stock look very carefully and envision what the business model will look like down the road say five to ten years from now. If you see that it is something that will continue to raise standards for humanity and add quality of life to everyone then you want to invest. If profits are the only criteria then you are doomed to keep tripping and stumbling along and maybe helping future generations lose out to income inequality.
Your portfolio matters not just to you at the moment but to everyone. It is imperative that you understand that intelligent investing involves everyone now and not just a few. You must look at the future with very clear eyes. See the potential that is there and follow the companies on the cutting edge of it.
In essence what I am telling you is not to do what most do now. "Don't sell out". Now is not the time to do that for a variety of reasons that all make sense. Stagnation and income inequality can easily be defeated with the right forms of investment. Jeff Bezos is no smarter than most of the other young entrepreneurs out there. He simply has the resources to make change. Keep that in mind next time to want to create another billionaire or behemoth corporation. Cheers!
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