27-12-2010, 03:06 PM
I am starting to read this book "Margin of Safety" (hopefully can finish the book). Thought that might as well post some thought nuggets for discussion.
I am guilty of this. I'm the kind of person that must get my hands dirty be it buying a new electronic gadget, understanding about car engines, etc. I seldom dive into buying a piece of gadget or machine without doing considerable research on technical specs and reviews.
However, the same cannot be said for investment. Actually, I do not really "invest". I have so far only took up NCPS and IPOs. And total count of perhaps 5 or 6. Except for the very first time I bought into SGS, I read up as much as I could. Then when I progressed into NCPS, I only sought general feedback and never really read the prospectus. Recently I bought into 2 IPOs based purely on gut and general sentiments.
Is this due to me not being a financial person, not caring too much about money not earned through the "traditional way", or there's some "trap" that people get into when it comes to investments?
Quote:We all know people who act who act responsibly and deliberately most of the time but go berserk when investing money. It may take them many months, even years, of hard work and disciplined saving to accumulate the money but only a few minutes to invest it. The same people would read several consumer publications and visit numerous stores before purchasing a stereo or camera yet spend little or no time investigating the stock they just heard about from a friend. Rationality that is applied to the purchase of electronic or photo-graphic equipment is absent when it comes to investing.
I am guilty of this. I'm the kind of person that must get my hands dirty be it buying a new electronic gadget, understanding about car engines, etc. I seldom dive into buying a piece of gadget or machine without doing considerable research on technical specs and reviews.
However, the same cannot be said for investment. Actually, I do not really "invest". I have so far only took up NCPS and IPOs. And total count of perhaps 5 or 6. Except for the very first time I bought into SGS, I read up as much as I could. Then when I progressed into NCPS, I only sought general feedback and never really read the prospectus. Recently I bought into 2 IPOs based purely on gut and general sentiments.
Is this due to me not being a financial person, not caring too much about money not earned through the "traditional way", or there's some "trap" that people get into when it comes to investments?