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
you 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!"

