![Chapter 33 [Ability to invest in individual stocks]](/_next/image?url=%2Fimages%2Fblog%2Fjames-history-and-today%2Fen%2Fjames-history-and-today-0039-cover.png&w=3840&q=75 "Chapter 33 [Ability to invest in individual stocks]")
Chapter 33 [Ability to invest in individual stocks]
Any position in a company that is more than a CEO, an individual is specialized in one or two jobs, but the CEO of a company is different. A CEO is not only familiar with the company's products, but also has a vision of the market, long-term dreams, financial knowledge, and strong management and communication skills. Only this person with such a comprehensive ability can be competent for the CEO's job. A successful individual stock investor needs to have the same skills as a CEO
Source document: 2023.05.12第三十三章【具備投資個股的能力】.docx
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[James Origins and Today] Chapter 33 - Ability to invest in individual stocks (05/11/2023)
than the CEO.
In any position in the company, an individual is specialized in one or two jobs, but the CEO of a company is different. A CEO should not only be familiar with the company's products, but also have a market vision, but also have long-term ideals and dreams, as well as financial knowledge, and have super strong management skills and communication skills. Only this person with such a comprehensive ability can be competent for the CEO's job.
A successful individual stock investor needs to have the same vision as the CEO, the same financial capabilities as the CEO, and the business model and future development vision of the product. Therefore, a successful investor, investing in individual stocks, must understand the company's products better than the CEO of the company, have a longer-term vision than the CEO of the company, can see the future of the company, and also need to have very strong financial capabilities to see whether the company's finances are sound.
So a stock investor is more CEO than the CEO of the company, which means that not everyone is suitable for investing in individual stocks. Buffett said that he is successful in investing because he is an investor and an entrepreneur, which is why
Also).
Would you be willing to own the entire company?
If you invest a small amount of money in a stock, you may not study the company very well, and if you do not care about investing this small amount of money, you will not seriously study the past, present and future of the company.
If you think about the total market capitalization of a company with your full own funds, you will think differently when you invest in a company to get shares. Because this amount is so large, this company belongs to you. You are responsible for the success of this company. The industry turnover and profit of this company are closely related to you. Your investment mentality will definitely be different. You will look at your investment with a very cautious attitude. This is why it is necessary to buy all the stocks of this company to succeed.
The challenge is to go down in the market.
When you invest in a company, when the stock price rises, you will definitely think how right your investment is, you will think that your IQ is higher than others, you will think how unique your vision is, and you will think that you are like an investment genius.
But the real test comes. When you invest in a stock that has fallen sharply, dropped by half, or even dropped by 90%, you still think that you are an investment genius, insist that your investment choices are correct, you still have great confidence in the company you invest in, and even you can bravely increase your weight after the stock price has fallen by 90%. This is the real test of investment.
![Chapter 33 [Ability to invest in individual stocks] Picture 1](/images/blog/james-history-and-today/media/james-history-and-today-0039/image-01.jpg)
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I remember when I was designing products at the Multimedia Laboratory in the United States, I knew very well that American innovation was number one in the world. When we were thinking about a product in the United States, we were definitely not thinking about how to copy other people's products, but starting from scratch based on human needs, starting from thinking about consumer needs, then entering into the design structure, and finally completing the product. Therefore, in the United States, most of the original technology was started from scratch, and the same innovative technology was transferred back to Taiwan. Taiwan's new technology products are a little bit different.
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