Chapter 35 [Best Strategies for Investing]

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[James Origins and Today] Chapter 35 - Best Strategies for Investing (05/18/2023)

There is no perfect investment strategy in the world, the focus is on knowing yourself and understanding the investment product.

Investing is best for meeting your financial goals and maximizing long-term safety returns. When setting a goal to maximize the safe return of an investment commodity is to buy and hold, never sell.

Buffett has said that buying passive index investments that cover the market is the best investment. The whole investment process and learning is to move towards this goal. All past experiences also reinforce this goal.

We invest only in QQQ and the same ETF, so we are unique, the only thing that will not change unless we stop investing.

Investment is composed of shocks and growth, and there are no investment commodities that have risen in a straight line without shocks.

Cash has fluctuated with inflation, and the fluctuations are not small, and it will continue to decline without growth at all.

Bonds also oscillated with interest rates, and the oscillations were no smaller than those of equity index funds. So there is no investment commodity in the world that only rises and does not fall. Only time deposits in the world may be a commodity without shocks, but there is no guarantee of tangible returns.

Our investment index fund QQQ is a long-term investment based on believing in humans, believing in the United States, believing in technology. It is also based on the premise that this is the best long-term safe return investment commodity (although the shock is not small.). "Shock is not my concern," Buffett said. as long as there is a high return over the long term).

Any investment commodity that is not consistently up and not volatile, and we expect high returns in the long term, is bound to face relatively large volatility in the short term. And it must be found that when QQQ is volatile, some commodities are less volatile or even have small earnings, such as time deposits or other commodities. However, the average investor will not know when to switch to which commodity, let alone a stock to speculate in. Even professional managers can't do it, let alone ordinary investors (you can't make much money in the long run by saying that you can't do it with a cannon or short-term speculators).

So when the market is falling, the information is full of buying oil to buy gold to buy raw materials to buy defensive goods to buy, then we have to ask, did you buy QQQ when the market was low? Did you buy QQQ at the 2009 lows? Have you been holding on to QQQ till now? Is there a 20% return on capital (ROE) over the last thirteen years (2009-2022)? (ROI of just a little bit of money, even high is not a real return) In the past 13 years, QQQ has gained ten times the annualized return of 20%. Why do you need to speculate about bonds, gold, oil, raw materials and individual stocks? If there are investment experts or well-meaning people who would recommend this hype, they are speculators who have not made a lot of money in the past.

Investing is easy and never ends (it's hard to get started). You can't go back and forth between 20 or 30 investment products and expect to get a very high return!