- Most of the money is earned with the word "no"
- Finance learned from scratch
- The role of privacy in financial decisions
- Have emotions under control
- Confidence helps to identify opportunities
- When investing: Always think in percent
- Don't let others irritate you
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Most of the money is earned with the word "no"
Whether you buy or sell. The temptations are by the wayside. Bombarded by daily news from the financial world, many investors allow themselves to be misled again and again. The sources of the evil lie in two areas. On the one hand, investors are constantly itching to jump on the bandwagon, driven by the fear of missing out on opportunities. On the other hand, the lurking fear of losses tempts investors time and again to sell and to withdraw from commitments unnecessarily. From engagements that would have been worth keeping for the long term. These phenomena can be observed everywhere: a actionism with fatal consequences for the savings. Nothing great can be built that way.
The old stock market adage "To and fro empties your pockets" was justified. Most of it is still based Income in the broker and exchange industry on transaction fees. That means: the more is bought and sold, the more it earns Industry. This is particularly pronounced in the United States of America. There, most employed brokers do not receive a fixed monthly salary. You only get a percentage of the transaction fees that you pay customers generate. It is therefore also completely pointless, with a few exceptions, to ask a securities advisor whether you have a specific Action sell or should buy. It's like going into the hairdresser's and asking if you should have a haircut.
Finance learned from scratch
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I am fortunate to have been business friends with fourth generation bankers for two decades. There are two brothers who grew up in Paris and Switzerland, who are still fully liable with their private bank, including their private assets. Such businessmen are rarely to be found in our time. You have always opted for international quality and independence. After World War II they employed 60 Employees, today there are 62 people in the bank. With care and a lot Engagement conduct their banking business. Not surprising: the Lehmann crisis in 2008, to which numerous banks fell victim and in which other institutions only survived with the help of politicians, passed them by unscathed.
From an early age, at home, at the breakfast table, so to speak, they listened with pricked ears to conversations between their father and uncle. In this way, they saw what was going well and badly in the banking world. One of the principles that was repeatedly suggested to them was: »Boys, never forget, we make more money, saying – no«. This simple sentence has it all and hits the nail on the nail Head. For the investor it is like this: Long-term successful investors and entrepreneurs avoid bad and mediocre ones Shops. You focus on one area. There their expertise grows and their Expertise. And that's where they hold out. Stamina with know-how is ultimately what makes the difference.
The role of privacy in financial decisions
According to my observations over many years, the root of bad money investments often lies in the professional or private environment. Particularly Peoplethat one Job pursuits that are often viewed as repetitive or boring are at high risk. Dentists and notaries, to name just two professions, are tied to their practice or office space. After a few years in the profession, they lack real challenges. The monotony of the daily routine is tiring.
Investing money, speculating, offers itself, so to speak, as an escape to another World at. The thrill of a financial adventure is subconsciously sought after. The following scenario is not uncommon at home either: after many years of family life, the family members show little interest in the day’s work at the dinner table. praise and recognition there is hardly any. How beneficial are the phone calls with the investment advisor or the asset manager. "Yes, he still understands, he still appreciates what I do here every day." And so many a successful person drifts off into the financial world as a permanent amateur. And as a rule, the end result is always the same: In the boom, he buys with full cheeks at high prices. And in the crash, like in 2008 and 2009, he gets very nervous and finally gets out exactly at the bottom of the market. He feels like a beaten dog, treated unfairly and badly.
Have emotions under control
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Anyone who ventures onto the slippery stock exchange floor should own it emotions hand it in to the cloakroom together with your coat beforehand. Boredom, a thirst for adventure, frustration at work, a vacuum in domestic life - none of this should have an impact on investing and investing. Such deficits should be compensated for with other interests: maybe take up a hobby, pursue a sport, learn a musical instrument, get involved in social work in the non-profit sector. From my own experience, I can assure you that my performance on the stock market has improved again since I Age started taking violin lessons at the age of 55. It doesn't matter what you do decide: For God's sake, just leave your capital alone.
It's not just about the many unnecessary expenses. Constantly investing on every exciting-looking opportunity has far worse consequences. Before you know it, you are fully invested over time. The stock portfolio is overflowing with speculations and commitments that have gone wrong. Most of the time you don't really know why you bought one or the other stock at all. The typical picture of such a depot: nothing about strategic consideration, more like a shelf full of bitten apples. A picture of misery. No trace of wealth accumulation or expansion.
Confidence helps to identify opportunities
In business and on the stock market, everyone can achieve infinitely great success. It requires only one thing: the knowledge and confidencethat excellent opportunities are offered in life. But only a few! I see it like this: The Art lies in the calmness of waiting patiently, looking out to sea and keeping an eye out for the really big tanker. And then one day he shows up. Very close to the Eyes he slowly drives past you. Many investors miss this beautiful moment. Or they just don't see the big tanker. They think a cloud obscures the picture. And in the second step you have to grab by the forelock and strike. With capital in your pockets, it's time to get on board.
These are irretrievable moments for which the investor must be prepared. But who not systematically Discipline and constantly invests in mediocrity, as an investor you cannot "strike" at the decisive moment. It's always the same. At the decisive moment - when the best assets, land, shares and company investments are given away in a mega-crisis - hardly any investor has the liquidity to buy. It's an age-old observation on the stock market: At times of the most extreme swings, both in the HyperBoom, when prices boil over and in the deepest sell-off crash, the irrationality of the mass hysteria lasts much, much longer than one would think possible. Those are the moments when big assets be made.
It's the investors who keep saying "no" for a long time - for years - that make it big. So please again: Do not do any occupational therapy with your Money, but only seize exceptional opportunities! For those who are reassured, Warren Buffett also believes in this approach. He doesn't use my image of the "big tanker." He is the Opinionsthat every person is given a »Twelve Card« for the journey through life at birth. If you're on the ball, you can get twelve correct points in your life. Buffett and I are optimists by nature and experience. But as a friend of mine said long ago, "The houses on the best lots on Park Avenue in New York are all built by optimists." He's right.
When investing: Always think in percent
Young people in the Vocational Training and at the beginning of my career are particularly important to me. It is not easy for them to find their way to investing and investing. They are not taught it in school. But there is a very simple one product: Don't think in euros, but in percentages.
I keep hearing the argument: »I don't have enough money. It's not worth it for me. For the few euros that come around… ”Well, I know what I'm talking about. I myself was in the same situation as a young person. But I tried it and learned that it is worth investing money on the stock exchange. Here is an example: On 8. December 1971 I bought my first share. I was 15 years old and my savings amounted to 200 Deutsche Mark (DM). It was a time when there were neither smartphones nor Internet gave. I wanted to do more with my money. So I studied the stock prices in the newspaper and did as much research as I could.
I opted for a mechanical engineering share, the Gute-Hoffnungshütte-Aktie (named: GHH, later part of the MAN Group), which seemed promising to me. I had to place the purchase order from the pay phone during the school break. The share was quoted at DM 143,50. Because of the high minimum fee cost me the whole thing Fun DM 150,36. Actually, I had expected only 1,5 percent expenses for buying and selling. I hadn't thought of the minimum basic fee of DM 7. What began with hope turned out to be a low blow. Because the GHH share had to rise by at least DM 14 for me to reach the plus-minus zero line. I was pretty depressed then. I had prepared myself so well and yet miscalculated. But I was lucky. Within just four months, on April 11, 1972, I was able to buy the GHH share at a price of DM 179, sell. After deducting expenses, I was left with DM 172,05. I had made a profit of DM 21,69. A very small amount (11,06 euros) which most would have shrugged off. "So, was it worth it...?"
Don't let others irritate you
But I looked at it completely differently, because I had a remarkable Success succeded. A gain of 14,42 percent in just four months! The small amount of money didn't bother me at all. It came down to the interest rate. I had learned first-hand that if I could have returned 14,42 percent on one stock, I could have done it on 1.000 shares with the same amount of research and work. And that's the beauty of the stock market. Ultimately, it doesn't matter how much money is invested. The mechanism is always the same. Anything you learn or "practice" in real life with small amounts will be of great use later when larger amounts are available. Percent is percent. So I was fortunate enough to gain two insights early in my life:
- First, it is worthwhile to be successful in your job so that you can save regularly and build up reserves.
- Second, savings become capital. And capital can become a second pillar of income if you invest it properly.
It was a wonderful prospect for me and it motivated me a lot. Not only my job, but also my capital would "work for me" in the course of my life. And that's how it happened.
So don't let other people's talk that it's not worth it stop you. Try to save capital and then let it work for you. And just calculate in percent at the beginning. Who knows, it can turn into huge sums later. Only patience!
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