Uh oh. The Philippine stock market is gaining momentum again.
My portfolio is looking good. And now I start to regret again that I didn’t buy good stocks when they were still so cheap. Sigh. Now they are getting expensive again.
I’m still not very good at this but I really want to learn.
I’ve learned that some of Warren Buffet’s principles are the following:
1. Be fearful when others are greedy and be greedy when others are fearful. Meaning when it is a bull market and the stocks are over priced, you should think twice … but if it is a bear market and prices of good companies are low, you should buy more because it won’t take long for the prices to go up again.
2. What you don’t know or understand, you don’t touch. He saved himself from losing millions of money by not investing in businesses that he himself don’t understand. For example, even if he’s really close to Bill Gates, he still doesn’t invest in tech companies like Microsoft. At least that is what I heard…
3. One way to earn in the stock market is not to lose money. Haha. Crazy, right? But it’s really all about proper timing. You have to know when you have to buy and when to sell. And keep in mind that fluctuations in the stock market is normal. But good stocks usually have an upward trend over time. They say that in the short term, stock prices are affected by news, media, even gossip and speculations. But in the long term stock prices are really dictated by the company’s profitability and growth. So you really have to keep an eye on the blue chips.
Oh, I still really have a lot to learn from the Truly Rich Club