Friday, December 26, 2014

What Is an Acceptable Investment Return?

There are many type of investors. Some of them are not investors, but speculators. Stock market is an interesting place, which serves the needs of many types of people.

I have seen many market participants, who does not even look at the company business before, purchasing and selling the shares of a certain company. They consider it as an abstract, and consider the stock market being a place, where they can trade the shares of companies, And that is it.

On the other hand, I have seen market participants, who only purchase shares after having studied nuts and bolts of the companies, they are becoming shareholder in. These type of investors, in some cases, do not even pay attention to the intricacies of the market.

The truth is that people should choose the best way to participate in the markets, and try to become a professional in the field they have chose to be involved in. The history shows, that what counts is not the methods market participants apply, rather how well they define the areas of expertise and make good out of it.

Therefore, the rates of return for different type of investors will be different. For me personally, I believe that it is important not to lose, and only then think about making money.

No comments:

Why Companues Go Public: Rationality Comes First

This is a post that was written as a response to the post on FB. Here is the link: