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Things people think makes you a good investor but not really

1. “My stocks went up, so I know what im doing”
You could have just gotten lucky, short-term price movements aren’t a solid validation of your picks.

2. “A really rich person has the same position I do”
It doesnt mean that your selection was still the right one, appeals to authority don’t make your investment selection process a good one

3. “I read 4 articles and they agree with me”
Lol okay but what are the actual reasons?

4. “I told you i know what im doing, Im not just a simp”
No one thinks theyre a simp but theyre out there
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MarkPaul · 26-30, M
5. "Everyone else is taking a position so I'm in good company."
Warren Buffet cautions about following the crowd as an investment strategy and often recommends doing the opposite of what the crowd is doing.
Zaxel · 26-30, M
@MarkPaul lol yeah, every1 is swearing their investments are about to go through the moon rn , i dont see it
MarkPaul · 26-30, M
@Zaxel I think some individual stocks tied to certain industries in particular are primed to rise, but yeah this idea that "my investments are going to go through the roof" seem far-fetched.
Zaxel · 26-30, M
@MarkPaul which industries? i cant find anything that seems worth it
MarkPaul · 26-30, M
@Zaxel Some examples I've been following: health (care-giving), auto industry (electric cars), and food (groceries, not restaurants).
Zaxel · 26-30, M
@MarkPaul i feel like all of those industries are oversaturated atm lol. healthcare, bc every1 is zoned into vaccine news so lots of money inflow. electric cars, tesla being an example, huge money inflows causing price appreciation. for groceries maybe, but its just an obvious industry to look into, it seems at par/overvalued to me
MarkPaul · 26-30, M
@Zaxel Well, you're looking at it high level and superficially, perhaps. By healthcare, I'm not talking about vaccine delivery... it's too late to jump on that bandwagon. I'm talking about the care-giving segment in particular.

Electric cars... Tesla is the obvious choice, but more companies are jumping in with formidable commitments. It's literally a ground floor opportunity. And, groceries... again superficially and high level, yeah it's a bit obvious. But, if you are inclined to put any effort into hardcore research, there's growing consumer interest beyond what already exists in grocery delivery options. Not a ground floor like electric cars, but plenty of room for significant growth.
Zaxel · 26-30, M
@MarkPaul caregiving, hmm , there could be something. havent looked into it.
i just dont like electric car companys as investments because of the high costs in teh beginning and everyone is still in the R&D phase, no telling where the future of the industry is going, no one is solid yet. the grocery industry comment is intriguing, but also the super heavy competition from places like amazon is pretty worrying, soemthing youd have to keep a very close eye on
MarkPaul · 26-30, M
@Zaxel Well, that's the thing that most people don't get which gets back to your original insight about people claiming they are "good investors" when they don't even understand what investing is all about.

There is an element of risk, but with research you weigh the risks and those who have the fortitude to jump in during the R&D phase have the maximum potential for reward. But, yes, that is risky because even with the best research, the market could go in another direction. Personally, based on my research, I think electric cars is going to take-off in a big way... not today, not (literally tomorrow), but within the next 3 years... that's my investment window. So, for me, now is the time to start building my position in that segment of the industry.

Amazon will be a formidable competitor, but they will also help grow the market which right now is only starting to develop. As consumer demand starts to accelerate, they won't be the only player. They will have competitors. I'm betting on those competitors. They don't need to be beat Amazon to be viable players.
Zaxel · 26-30, M
@MarkPaul yeah i know lol. the stuff youve mentioned are all industries where u need to watch closely , its very intensive. my style, i just like the stuff where you dont have to check in on it super hard, but still get a good return. im pretty lazy on it
electric cars could be technologically ready in 3 years but regulation is the real key concern on whether it can fly. regulation problems could take 5-10 years for all we know.
i see lol, i just prefer to get involved with investments i can hold for hte long term, my time horizon is more like 10-20 years vs like 3-5 year holds.
MarkPaul · 26-30, M
@Zaxel This is about the dumbest thing I have ever heard. "lol"
Zaxel · 26-30, M
@MarkPaul which part? it just seems like our styles are different, ur more focused on 1-5 year holds in growth-heavy segments that require close watches. its a little riskier but the payoff can be good if you get the right picks.