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Investment thinking – buy little or big

Investment thinking for small or large investments

Although you can be a little bit invested you should not be casual about where or how you invest. Investment thinking means carefully considering even a small investment. Consider it as seriously as you would if buying the entire company. You don’t want even a small bit or single share unless it would be worth your while owning it all.

Warren Buffett teaches us, “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”  That point of view starts you thinking like a capitalist. Your first obligation as a capitalist; always keep your money safe.

Don’t be afraid to invest; deploy capital when you find opportunity that favors you. Just don’t be in a hurry. Invest after you know the prospects are good. You need to see or change things so that risks align in your favor. As well, have both timing and returns in your favor.

Research to assess your prospective investment

Over time these White Top View conversations will cover specifics of the required homework. The good news it that you can comfortably do it where you are and on your own time.

You do have to make the effort. Becoming a knowledgeable investor is well worth your time; it can very significantly grow your wealth.

Shares and units of listed or so-called publicly traded companies and funds are called equities. Investing in equities provides an excellent way to build wealth. Doing so can significantly increase your financial security and open many options for your future.

When investing in equities we can limit our involvement or completely get out of a poorly performing or concerning investment. Selling equities is possible without much fuss or inconvenience.

That means you can invest knowing you have the ability to bail out and limit any downside risk. Selling is also important when it is time to reap the profitable results of your investment work.

There are risks

Investing is not without risk but risk can be mitigated. Do so by learning to understand the markets and how to think as an investor. Learn how to assess opportunities. Learn how to control costs. Then you can confidently take intelligent, calculated and limited risks.

Beyond equities there are limitless other investing opportunities. In the White Top View posts we will begin with and focus on equities. I suggest learning them first because they can so effectively and dependably deliver results. Most alternatives to equities require special situation knowledge or contacts which we can discuss in the future.

Over time we will cover many details of investment thinking and how to take the calculated limited risks to grow wealth.

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Your comments and questions are welcome here. The bite sized White Top Investor lessons help demystify investing and give you a better understanding of markets. By becoming more knowledgeable you can become a confident investor, one small step at a time. The White Top Views email list will never be shared or sold.

Have a prosperous day!

Bryan

White Top Investor
whitetop@WhiteTopInvestor.com
www.WhiteTopInvestor.com
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These discussions and information intend to help you better understand markets and investing. I am not a financial or investment advisor; opinions are for informational and educational purposes only and are not intended as investment advice. For syndication of the site or blog, please contact info@WhiteTopInvestor.com.

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2 Responses to Investment thinking – buy little or big

  1. Fast Weekly January 8, 2014 at 11:33 am #

    I couldn’t have said it better myself Bryan. That’s why I’ve been letting the cash build up over the past year. I just don’t see many undervalued securities out there. I just found your blog thanks to a friend’s tweet. Have a great day
    -Bryan

    • Bryan January 8, 2014 at 12:35 pm #

      Thanks Bryan, I have been fully invested and although there are few cheap industrials there are some interesting emerging companies. I think we have a good year in front of us. So far the big picture continues to be positive. Until that changes I will stay on the ride.

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