Join Us Now!

Subscribe and Get Updated on the Latest News
Name: (*)
Invalid Input
Email: (*)
Invalid Input
SECURE & CONFIDENTIAL
Your email address will NEVER be rented, traded or sold. WE GUARANTEE YOUR CONFIDENTIALITY.
We hate spam as much as you do.
Is it safe to invest now or should we go in later?
Written by Andrew Boey   

Hi Fellow Automated Millionaires,

One of my clients asked me this question,"Max, with Lehman Brothers collapsing, AIG on the brink of Collapse and the rest of the companies future unknown, is it safe to invest now or should we go in later?" True, as an average investor, it looks quite bad timing to invest now for most people, as most people have limited resources - money.

So, let us go back to the basic. Robert Kiyosaki said before you earn when you buy not when Warren Buffetyou sell. This statement is reaffirmed by actions of The Richest Man on Earth - Warren Buffett.  In February 1973, US economy was in recession and inflation was rising. Dow was down by 40%. Buffett began buying shares in Washington Post at US$27 a share. As price fell Buffett bought more and by Ocober was the largest outside shareholder. To Buffett, the Washing Post was a US$400 million business that was on sale for just US$80 million. Wall Street saw a collapsing market but Buffett saw an opportunity to buy a sound, attractive business at an 80% discount to its value, hence there is no risk to him.

The question becomes what to buy at the current moment? Warren Buffett has 2 rules about Investing - No.1: Never Lose Money No. 2: Never Forget Rule No. 1. Now, on the contrary to advices of a lot of Investment Gurus, how could we never lose money in investment? Most people have a belief when comes to investment - High Returns = High Risks. But Warren Buffett have this belief - High Returns = Low Risk. So how does Warren Buffett achieve this?

The answer is High Probability Events. Warren Buffett only invest in High Probability Events and nothing else. Since Warren Buffett is focused on the long term, the possible loss from a High Probability Events are very low. Therefore, whatever you invest, remember High Probability Events :)

Happy Investing!

Yours Sincerely,
Max Tay
The Automated Millionaire System™ - "Where Wealth is Automated!"


Andrew Boey Written on Saturday, 20 September 2008 00:00 by Andrew Boey

Viewed 215 times so far.

Rate this article

(0 votes)

Latest articles from Andrew Boey

  • Code of Honour posted on Sunday, 07 June 2009 09:32

    Be willing to stand behind the purpose, values and goals of the team once decided…

  • Mission and Vision posted on Sunday, 07 June 2009 09:29

    Mission "To Empower & Educate Individuals with Financial Intelligence to become Smart Millionaires"

  • Don't be led by emotions posted on Thursday, 30 April 2009 00:00

    Business Times - 22 Apr 2009 Don't be led by emotions All-or-nothing investing rarely pays…

  • Business Times: Will fortune favour the brave in this climate? posted on Saturday, 08 November 2008 00:00

    Hi Fellow Automated Millionaires, To be very honest, I wanted to write this article tonight…

  • Margin of Safety? posted on Saturday, 25 October 2008 00:00

    Hi Fellow Automated Millionaires, Just yesterday Bloomberg.com stated that MSCI Emerging Markets Index lost an…

blog comments powered by Disqus