Investing Can Be Your Fast Road to Retirement Riches
The following chapter is extracted from my book, Super Investing: 5 Proven Methods for Beating the Market and Retiring Rich. As a Wall Street professional, my job was to research and then create tested profitable investing and trading systems for stocks, bonds, currencies, gold and commodities. Having spent years testing every type of conceivable system, I discovered only a few will make you rich in the long run. This book is all about those proven methods, and the lessons I would teach teenagers and college students to set them on the path to being able to retire rich through investing. I was always fascinated by the goal of creating a means for creating generational wealth, and in this book I lay out all the proven methods you can use to fund that objective.
This is a simple book on how to grow your wealth through several proven, powerful investing methods. Specifically, it contains the simplest but best performing investing methods that I have found in over thirty years of investment research. Most people want to become rich, and while there are many roads to wealth, most people don’t have the means to become wealthy other than through the road of savings and investments. If that’s you, this book contains five very simple, historically proven investing techniques that have often grown stock portfolios at consistent rates of 20% or more per year over many decades, and are easy to put into practice on your own. Despite their fantastic track records, you may not have ever previously encountered these techniques because they go against Wall Street’s often advertised idea that you should simply buy and hold stocks in order to become wealthy, or let Wall Street do the work of managing your money for you. In today’s volatile world where the Wall Street players are often not to be trusted, the idea of being a passive investor is not safe any longer, and so these are more active investment strategies to help you protect and grow your wealth.
Like Wayne Green, founder of several of the best selling magazines of all time, I have always advised people that the very best way to become wealthy and control your own destiny is to start your own business. Again, if you want to become wealthy, the best way is to start your own business.
Unfortunately, most people cannot or don’t want to do this. Even so, the plain truth is that an inordinate number of people have become well off as a result of starting a business that was in tune with what they wanted to contribute to the world, and which materialized some form of what they believed to be their life purpose. Famed investment fund manager Ken Fisher wrote a book, The Ten Roads to Riches: The Ways the Wealthy Got There, where he listed the ten most common ways by which people most often got rich in life, and at the top of his list also appeared this idea of starting your own business:
- Start a successful business of your own (ex. Bill Gates, Donald Trump, Mark Zuckerberg)
- Become the CEO or extremely high paid executive of an existing firm that will reward you extremely well (ex. Jack Welch)
- Hitch yourself to the coattails of a superstar visionary who is going places and ride along his wave of success (ex. work for a startup that succeeds)
- Become a celebrity yourself and turn fame into wealth (ex. George Foreman, Paris Hilton)
- Marry into money
- Use the law to take money from other people (ex. Erin Brockovich)
- Capitalize on or leverage other people’s money to make your money (ex. be a portfolio manager or banker collecting fees on the money they manage)
- Invent an endless future revenue stream such as the perennial royalties from a book, movie, invention, song, etc.
- Make money from real estate using the power of leverage
- Save hard, avoid debt and invest well
The large majority of people cannot make use of any of these proven avenues to riches except for the last. Therefore the many roads for accumulating wealth are out of bounds for most people except for the one avenue of investing. This book is therefore devoted solely to that road of investing, especially for the target of accumulating a retirement nest egg that can become a large family legacy.
Perhaps you need more money now so that you can live better, or so that you can more easily pay for expenses such as your children’s college education. Maybe you want to accumulate more for retirement because your savings aren’t sufficient and you know you shouldn’t depend on government programs and promises for your retirement years. Perhaps you want to have enough money that you can be financially independent and thus free to say “no” to wrongs when you see them. Perhaps you subscribe to the noble ideal of doing great deeds in the world and therefore want to establish a great charitable legacy that requires funding.
Whether you are trying to increase your current income, become financially independent, set the stage for a comfortable retirement, or establish the initial core of what I call “generational wealth” that is large enough to help the world and fund the dreams of several generations, what should you do? What investing strategies should you employ and what steps should you take? If you are just an ordinary individual with an ordinary job, is it really possible that you can accumulate such wealth? Is it possible that someone can use some plan over the course of twenty, thirty, forty or even fifty years of compounding and position themselves to be in the leagues of millionaires, or even the mega-wealthy?
It is indeed possible, but it also requires some money to start with as well as periodic additions to that initial capital. While saving money is difficult, nearly anyone can find a way to accumulate the necessary starting capital required for investing. The first thing you must do, however, is sit down to take a pause and think deeply. You must carefully set some targets and objectives, and then consistently devote yourself to a wealth building course of action to fulfill them. You must stop carelessly spending your savings or throwing it away through speculation. You must put it to work in proven investment techniques that safely compound money at extraordinary rates of return. Of course, it is important to also consistently add more funds to that growing sum wherever and whenever possible.
While you probably cannot take advantage of any of the other ten roads to wealth from Ken Fisher’s list, you should discuss this list with your children for several very important reasons. It is rare that elders take the time to talk to the younger generations about the various means by which people typically become wealthy. Can you recall a time when anyone ever talked to you about this and gave you teachings and advice? Because we don’t teach them otherwise, today’s youth usually take money for granted after they get a job and don’t think about long term planning. They pile on personal debt, live beyond their means, and primarily learn how to spend money rather than save it or invest it. No one teaches them general rules for investing, and so they must learn it on their own, which typically entails losing lots of money in the process. When it comes time for their retirement, the outcome is that many people are broke because they have saved little and invested nothing at all. This book is meant to help counter that tendency.
There are many personal finance topics, such as covered in the book Rich Dad, Poor Dad, that we should share with our youth today. The task of how to manage one’s money and grow one’s wealth are some of the critical life topics which deserve intelligent discussions. You can use Ken Fisher’s list to open a discussion on these topics, or even give this book as a gift to help the younger generation get started with investing. As regards the topic of investing and wealth compounding, it contains the very information I needed to know in my youth when I didn’t actually know what I needed or wanted. Having this information back then would have changed my life in a profound way, and so I hope you can teach some of these systems to the next generation if you see these methods can help them. If you introduce these concepts to someone at an early enough age and they then start along on the road of wealth compounding using these techniques, I am convinced that their financial situation will absolutely dwarf that of their peers over time. Those with the greatest advantage are those who start earliest with these approaches.
Because the topic of wealth also ties into the topic of life in general, I have also tried to include various human interest lessons within this book that bring up important issues about one’s ultimate life purpose, perspective and fulfillment. I have met countless millionaires and several billionaires in my life time, sharing meals and deep discussions on a variety of topics, and from all these encounters am a firm believer that accumulating wealth that lasts is not divorced from personal character, merit and one’s values.
There certainly is a character aspect to success with investing because you need self-control and discipline to cut losses short and stay with your basic methodology, patience to bear uncomfortable drawdowns, calmness to transcend the emotions of fear and greed, unbiased intellect to look at how things really stand, and so on. I also believe that there is often a moralistic foundation to wealth accumulation that also not only helps you succeed, but which often explains why some people can accumulate great generational wealth while others simply lose all that they have accumulated in the end. Henry Kravis, billionaire co-founder of Kohlberg Kravis Roberts & Company, said, “If you don't have integrity, you have nothing. You can't buy it. You can have all the money in the world, but if you are not a moral and ethical person, you really have nothing.”
Along these lines when it comes to wealth accumulation, what people think are virtues in life are often not virtues at all. I have met a handful of people who lived so frugally that their family members, in surprise, only discovered that they had actually been millionaires after they died! You might consider this outcome as representing some type of success, but no one ever suspected this result because those individuals had lived painfully by denying even the tiniest purchases that might had added little joys to life. Frugality is typically a virtue, but if it extends too far—to the extent of miserliness or stinginess—this virtue has become a fault. An entire family can suffer by pursuing an imagined virtue that is its own opposite. The value of money is not in how much you have but in what it actually does for you and your family when you use it. It ultimately has to be used to have value. We must remember the tale of Ebenezer Scrooge who got absolutely no value from his coffers growing larger. He only became happy when he started using his wealth to bring joy to others and relieve them of pain and suffering.
You must think about how you will use any money you earn through investing, especially if it grows to become an appreciable sum. Ultimately it has to be spent to give meaning to all the work you do to accumulate it. The value of money only appears when it is used, so you must think about your ultimate goals and purposes for wealth and for life in general. I am talking about goals other than just good living. Many people have no reason for wanting to build up a financial fortune other than to see a personal bank account grow ever larger, which makes the entire effort a rather meaningless pursuit once they pass away. They neglect family, friends, health and moral values for business but no one gives a funeral oration upon their death saying “they were a great worker.” As Colonel Sanders of Kentucky Fried Chicken fame once quipped, “What’s the point of being the richest man in the graveyard—you can’t do any business from there!”
When writing this book, I was therefore constantly hoping it would eventually come into the hands of those who want to do something greater and more meaningful with whatever they subsequently accumulate in life, and because I believe these methods can definitely help someone accumulate large sums of money when given enough time, I was hoping some individuals would give some thought as to how they might use their monies to have a more positive impact on society other than just donating it to a college or charity organization. We are entering an era where the greatest good for people and society will probably be done by wealthy philanthropic individuals while they are alive, rather than by governments (who are finally tightening their budgets because they have spent too much over the decades), so I think these issues are rather important.
In The Richest Man in Town, the billionaire Jonathan Nelson mentioned that at the beginning of his career he met a CEO who had accumulated an amount of money so vast that he could never spend it or give it away in the his remaining lifetime. However, this CEO told Nelson that whenever he was sick he would cross the state line and stay in a hotel across the border. “I can only spend 180 days a year in my home state for tax reasons. I don’t want to waste a single working day when I feel good.” Reflecting upon this comment, Nelson realized something was amiss in this type of behavior, but could not quite put his finger on it. Nevertheless, he knew that this was no way to live. This wealthy man was a huge success by virtually every commonly held measure, had money he could not even count, and yet was leaving his own home when he felt ill to cross state lines just to save a few tax dollars.
Similarly, one of my own millionaire friends once told me that he could not buy a magazine or cup of coffee on a street corner because in doing so it actually pained his heart knowing that he was wasting money. On the other hand, he said that he could easily buy an ugly $150,000 tapestry and hang it on his wall despite its ugliness because he knew it was an investment. When I heard this, I realized this wasn’t a virtue but was actually a mental problem, and told him so. His “virtue” had become its opposite. It is counterproductive to life to set upon the course of accumulating riches if you become shackled like this or like Hetty Green, the Witch of Wall Street, who valued her bank statement more than her own health or the health of her children. A millionairess, when her son broke his leg she tried to have him admitted to a free clinic for the poor rather than pay for a good doctor, and she refused to have an operation for her own hernia because it cost $150. Her frugality had helped her become rich, but it had developed into a miserliness that negatively warped normal human relationships. If your personality becomes negatively warped by financial prosperity such that you lose sight of human values, what have you gained?
This is definitely a book on a variety of fundamentally sound, proven investing methods that, given enough time and the right circumstances, can indeed accumulate gargantuan wealth for some disciplined people. However, you must also ponder all these issues concerning what you should do with any money attained through these techniques if you are that successful. Life is in the doing, not in the locking away; money only has value when it circulates.
As Gerald Loeb (a founding partner of E.F. Hutton) was fond of saying in order to prod good people, “Why do you go to all the trouble of making this money? What’s it there for? To look at?” These are good questions to ask because you must remember that you cannot take money with you into heaven. As George Mallory (the famous mountaineer who climbed Mount Everest) said, “And joy is, after all, the end of life. We do not live to eat and make money. We eat and make money to be able to live. That is what life means and what life is for.”
Andrew Carnegie, who was once the richest man in the world, said, “The man who dies rich dies disgraced.” He was simply saying that if you accumulate wealth in life without using it to good purpose, then in his eyes you have been a failure in life. Your money has been accumulated to no purpose. Without touching the lives of people in a positive way, you have accomplished nothing at all in terms of higher purpose. You must therefore think deeply on why you are accumulating money and how you might use it other than just willing it to heirs who might squander it through destructive tendencies.
In any case, this is a book on superior investing methods for increasing your wealth and that’s where the emphasis will lie. While investing is the most reliable of the ten most common roads to riches, and while I believe you have before you some of the top tier investing techniques that will continue to work over your lifetime, no one can guarantee that any of these methods represent a fool proof plan for getting richer. Even when investments are successful, unexpected things can happen. This is one of the overlooked rules of investing in that fate is often unpredictable.
Life is fragile, stock markets are fragile, banking systems are fragile, and countries are fragile. An accident or plague can kill hundreds in an instant, a dictator can confiscate everything you have accumulated in life (I have known more than a dozen families from different countries to whom this has happened), and a war can destroy all the wealth your family has built up over many generations. In a world of constant transformations, the twists of fate can utterly destroy the best of assets and investment schemes. Fame and fortune cannot be depended upon to last. This is why I say that in times of adversity it is only your family, friends, and accumulated merit that can possibly save you. Thus once again, you must think of the value of great human relationships instead of just wealth, and think about how money can be used to help others both prosper and be happy in life.
Another issue you must deeply consider is that while American stocks have gone up over the long run, and while there is the good and reasonable expectation they will continue to do so into the near future, there is absolutely no guarantee that their growth rates will continue to place them at the helm of the world economy especially when we look at the potential of the East. Everyone always assumes that America will reign supreme for many future decades, but as people are discovering through the problems of the member states within the European Union, there is no real guarantee for any country that its stocks, bonds, or currency will maintain their values if destructive forces eat away at a country’s economic foundations.
Even though the U.S. dollar is presently the world’s reserve currency, in the past that title was held by other nations until they eventually lost their supremacy status in turn. One after another this always happens for as the Chinese say, “Empires wax and wane, states coalesce and cleave asunder.” No one remains the leader forever. History shows that the role of the leader always turns to someone else over time. Most fiat currencies have never lasted for more than forty years either, and excessive debt levels like we are presently seeing in the world have usually played a predominant role in almost every depression, crash, deflation and hyperinflation in history. In short, unanticipated macro scale economic changes are sure to hit whatever country you live in, and can certainly happen to the world’s present hegemon. We must remember that few predicted that the Berlin Wall would come down, China would start adopting capitalistic ways, the U.S. would offshore its manufacturing base, and emerging markets would become the new engines of world growth. All these things and more have happened in less than twenty years time. If you could not predict such giant trend changes, then with what surety can you forecast that your nation will always have a healthy future? You must remember this warning of risk when considering various long term investing strategies.
Now there are many approaches (a multitude of ways) by which people have made fortunes in the financial markets through the route of investing. However, it’s a known fact that the effectiveness of many popular investing techniques often fluctuates over time. This is why I have always sought long run investment techniques that capture something fundamental as their basis and which have worked over many decades. And even when you find such investment methodologies, once again there is still no guarantee those techniques will continue to crank out positive returns into the future. Even if a basic investing methodology continues to remain sound, the exact parameters it uses for decision making might also have to be adjusted over time. For instance, today we might be using a P/E (price to earnings) ratio of 10 as our criteria for selecting stocks, but we might be using a P/E of 14 just a few years later because lower P/Es cannot be found.
Since there is no holy grail or single solution to investing, since the investing methods that work must show a certain degree of flexibility, and since people have different personalities that attract them to different investment styles, I have tried to select a variety of techniques that appeal to different personalities and which—in twenty or thirty years time—can be easily adapted for a new investing environment and still continue working. Many of these methods can be adapted to work for various foreign (non-U.S.) markets, too. The investing techniques I’m introducing are the ones that have shown stable high rates of return over many decades, are based on fundamental underpinnings, are easy to duplicate, and are likely to continue working in some form or another into the future.
Since no single investing technique is guaranteed to work forever, in the best of worlds you would combine several techniques together to use in growing an investment portfolio. Some markets or asset classes do very well for long periods of time, and then do quite poorly for an equally long period of time. A perfect example is gold whose price in the early 1970’s grew from $41 to $800 by the end of that decade, and then fell for nearly 20 years. Since nothing goes up forever, it therefore makes sense that you should use a diversified investment approach to managing your money that rotates you into different asset classes and markets over time, and which borrows the “fund of funds” idea to combine several diversified investment management techniques together. Sometimes it’s your asset allocation and sometimes it is your disciplined methodology that allows you to avoid catastrophic risk (and preserve your wealth) during the periodic market meltdowns known to destroy wealth. By using different investment methodologies that focus on different markets and asset classes, you can help reduce some of these risks.
The need for diversification of investment methods and asset classes reminds me of a personal story one of my college classmates once told me. He came from Nicaragua, and he told me about his grandfather who had worked hard to build up an immense fortune that was completely lost in the stock market crash of 1929. His son, my classmate’s father, decided that he would not repeat his father’s mistake of having all his eggs in just one basket, so he decided to diversify the family’s holdings so that they weren’t just in the stock market. Over time he painstakingly built up diversified investments in many sectors of the Nicaraguan economy, and his family became one of the richest in the nation. It owned chemical factories, commercial real estate, plantations, import-export companies, an American car dealership, and of course stock market investments. Even though he had undertaken this successful strategy of diversification, his father had neglected one important thing—country risk. The family lost all its wealth once again when the Sandinistas came to power and confiscated many of their holdings! Short moral: in today’s world, there is need for international diversification.
If your country is ruined by war, such as has recently happened in Iraq and Libya, the value of your domestic savings and investments may also turn with the fate of the nation. Japan is uniquely facing the danger of the Fukushima nuclear plant continuing to radiate the country and its fishing grounds along with demographic and other depressive economic conditions. The typical Greek is facing the possibility that his net worth will be destroyed through a currency devaluation. Spain is facing a sovereign debt default. Who knows when these countries will return to a level of stable prosperity?
While Germany wisely prevented the outsourcing of its manufacturing sector over the last two decades, America has foolishly offshored most of its manufacturing base in search of lower costs (and thus its middle class job opportunities). Thus the country is now lacking a robust internal capital base and suffering the inevitable degenerating consequences of globalization, namely trade imbalances, unemployment and high national debt. Perhaps it will even see the end of the dollar used as a reserve currency. Basically, its prosperity has plunged because of deficits that are more than financial. The one economics book I always advise people to read to understand these matters is the unrecognized classic, How Rich Countries Got Rich and Why Poor Countries Stay Poor, by Erik Reinert, which examines the past six hundred years of economic history across many nations. It clearly shows that every country which loses its industrial manufacturing base always eventually becomes poor through that loss. Furthermore, you cannot replace that loss through an economy based on finance or speculation, or by printing money “out of thin air.” If manufacturing goes, the wealth goes as well.
You must produce and then sell something to see strong wealth grow within a nation, and you must store that wealth in the middle class if you want to see true national prosperity. This is why, as Jeremy Grantham has pointed out (and as paradoxical as it sounds), the history books clearly show that economic growth and stock markets have done better when Democrats were in power rather than Republicans. One of the reasons is that Democrats tend to look after workers, which as Henry Ford discovered ages ago turns out to be good for demand, and thus the markets. On the other hand, whenever you push the middle class into poverty by removing their jobs and saddling them with debt, or whenever you push an entire economy into speculation, it always leads to financial turmoil and economic decline. This is what the U.S. recently tried to do with its housing market by producing a mortgage bubble. We are sure to see a similar problem with student loans that are difficult to discharge even through personal bankruptcy. The prosperity of a consumption-based economy dependent on the economic well being of its consumers cannot last long if that base is imperiled, and that production base has been destroyed. If a consumption-based economy depends primarily on consumer debt as its fuel, that prosperity just cannot last over the long run because consumer debt levels can eventually go to extremes, and then we see a collapse.
As the economist Joseph Schumpeter noted, many types of financial wars and economic struggles are going on all the time. To grow your wealth and keep it you have to be attuned to these forces of “creative destruction” so that you can preserve your funds and move them into the greenest pastures when necessary. Determining where the new green pastures lie and moving into them is one of the roads to riches, and I laugh when people point out how Michael Corleone, in the Godfather epic, demonstrated this principle by moving his family into the attractive casino gambling business. The point is, if we want to grow wealthy through long term investing, we need adaptive investing techniques that can help us find new pastures to move into, or which help us survive when negative weather affects the one pasture we own until its grass can become green once again.
International diversification and asset class diversification, while only stressed in one of these five techniques, become ultra important when the prosperity of our host nation comes into question, and long term decline is a real possibility if governments institute wrong policies. The idea of growing your wealth through some static buy and hold strategy in the midst of deteriorating forces is ludicrous, so you must always remember to be flexible and open minded to active investment management techniques. I feel so strongly about this that I wanted to name this book, “Forget Buy and Hold” because going forward, I believe it is a mistake for investors to firmly anchor themselves to the typical 60-40% buy and hold domestic stock and bond strategy usually touted by Wall Street.
On the other hand, if you can identify a large unstoppable trend that represents incredible demand such as commodity price inflation, the growing shortage of some necessary substance, or an increasing preference for real goods over paper assets, … you might accumulate a small fortune by riding that trend using a “buy and hold” strategy throughout that multi-year trending period. Unfortunately, in this book we cannot go into this most fascinating form of investing that involves a combination of demographics, economic patterns, macro supply and demand trends, long wave cycles and the fate of nations for long term buy and hold investing. We must restrict ourselves to more active investment techniques you can easily execute on your own, one or more of which will appeal to your personality and investment style, that involve more frequent buy and sell decisions.
These techniques have been selected because they offer both safety and wealth accumulation throughout all types of economic environments, including the difficult ones. However, you should understand that the truly mega-wealthy always aspire towards a genuine understanding of macro trends and cycles in world affairs so that they can position their massive assets for dependable growth over long term horizons. Mega-wealth accumulation often involves buying and holding certain types of assets over extremely long periods of time, especially with a contrarian mindset, but even then we cannot say that you should do this forever. The prudence of risk control and diversification must play a role in the accumulation of wealth and these principles are often at odds with the strategy of buy and hold.
Even so, the wealthy are sure to study mega-trends for their investment potential. Knowing the long term trends, smart individuals with the required resources often position themselves so that they can slowly but gradually gain monopolistic control over very large markets and forces just as the Rothschilds aimed to do. The poor public rarely studies matters deeply like the mega-wealthy, and is therefore easily influenced by clueless talking heads on television who have no sense of history or long term market forces, but commonly mislead them into wrong investment decisions again and again. The mega-wealthy I have known, on the other hand, try to think independently rather than just accept what they hear on the news or read in the papers. They diligently study fundamental forces to understand the long term supply and demand situations for markets. That detailed study and subsequent understanding always helps guide their long term investment decision making. Many become rich through that type of understanding, but as stated, it deserves an entirely different type of book to explain it.
For instance, in America we’re now facing the retirement of 80 million baby boomers who are seeking to downsize their homes. They are leaving an average home size of 2,500 sq. ft. for 1,000 sq. ft. condos, but will eventually turn to even smaller dwellings in assisted living facilities as they get older. They will need to sell their present homes to the 65 million Generation Xers who earn less than their parents and grandparents, who have trouble getting mortgages, who have large college loans that are already a large cash flow burden, and whose employment security is at an all time low. Knowing such facts and that foreclosures are currently high due to other circumstances, we can easily forecast that the supply and demand situation is not good for American home prices into the near future. In the 2010 census, we found that America had 19 million vacant homes, and that inventory is not going to clear quickly.
Despite what you may hear on the news, such are the facts, and from these facts and the knowledge of demographic trends, employment trends and how markets work, we can foretell that property is a terrible investment at this time because it lacks a large potential for gain. Property prices will also certainly fall if we encounter another recession (which inevitably happens every few years), if property taxes go up, if home purchase tax credits or interest deductions disappear, or future mortgage loans all become adjustable rate mortgages (forcing homebuyers to assume the interest rate risk). A variety of possible but likely scenarios only make the future prospects of real estate worse than the present, and so many are stand aside because they feel that current decline in property prices is likely to continue. Whether the conclusion is true or false, this is an example of how the mega-wealthy train themselves to analyze and evaluate various investment situations.
The good news for the young, however, is that 85 million Echo Boomers will start buying homes from the 65 million Generation Xers in about 10-12 years time, which will start the clock again and initiate another property boom at the bottom of a 25-year bear market. At that time real estate prices will probably be a lot cheaper than they are now and buying property, rather than renting, will look like one of the worst investments possible on planet Earth. Unforeseen circumstances may change that forecast dramatically, which one will have to review at that time, but if all goes as stated, that future period may indeed represent a contrarian’s giant opportunity for getting rich through real estate once again. By understanding the long term demographics and the supply and demand situations they will generate, a wise investor can anticipate that he has about a decade to save up money before he can buy homes in the best neighborhoods at low prices. This is the type of understanding that comes from a macro analysis of demographic spending patterns and long term market forces, a style of analysis popularized by Harry Dent (The Great Boom Ahead, The Great Crash Ahead) and others.
Unfortunately, we will not go into this type of fundamental analysis because this book restricts itself to simple formula-type investing techniques with more frequent buy and sell decisions. Real estate investing, which has been a common road to riches for many, is therefore not a topic covered. Real estate, art, businesses, and commodities are all ways to diversify your investments and grow your wealth, but we will be restricting ourselves to systematic investment techniques that tell you when to buy and sell stocks and other liquid financial assets in the world markets.
Companies rise and fall, industries rise and fall, asset classes rise and fall, countries rise and fall, everyone is born and then eventually passes away. No one can guarantee that any particular investing method will increase your wealth by the end of your own unique investment horizon. There are always real risks that are out of reach of our knowledge and you should understand that from the start. In particular, there is the risk of ignorantly committing to ineffective investment methodologies that cannot work through an unforeseen crisis and preserve your wealth.
Nonetheless, after many years of research in the investment arena, spending time in New York and Asia, I’ve assembled a set of extremely impressive techniques for stock market investing that have brought continuous 15-20% year returns over decades of good and bad times and throughout all sorts of negative economic environments and adverse situations. What are some of the most impressive investing techniques that you can actually duplicate on your own so that you become a super investor? You are about to find out.
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For the rest of the interview, pick up a copy of Super Investing: 5 Proven Methods for Beating the Market and Retirng Rich on amazon.com.