| Be it in the stock market or real estate, anyone will | | | | against the herd. Knowledge without conviction is |
| make money only with proper investment education. | | | | pretty useless while conviction without knowledge |
| With long-term thinking. Not with the mentality of | | | | can be dangerous. This is where Warren Buffet's |
| buying one day and regretting the next. But most | | | | model is good to fall back upon. You might not be |
| people find it difficult to think different from the herd. | | | | aware that Warren Buffet was just 6 years old |
| They rejoice when prices rise and get deflated when | | | | when he was making money selling soda bottles. In |
| they fall. Eventually they succumb to fear and greed. | | | | the market he advises to buy investments with safe |
| But the crux of investment education lies in | | | | margins. Buy anything at a discount. Make money |
| separating emotion and money. | | | | because of the buying price rather than the selling |
| Any person would generally, unknowingly, buy when | | | | price. |
| it climbs and sell when it drops. That's not right. Here's | | | | Secondly he advocates using Mr Market effectively. |
| what Peter Lynch reveals from his 20 year record of | | | | Since the prices fluctuate everyday Mr Buffet |
| serving 28% annual returns at his mutual fund. He | | | | advises to look but not act. It's a little like Ted |
| says most people who invested into his fund did not | | | | Williams the great baseball player who would swing |
| make much money. Why? They were putting their | | | | only at the balls that came within full striking angle. |
| money in looking at strong performance and selling | | | | Ted explains that he set out 77 baseball sized cells |
| out when it was weak. By chasing performance | | | | around the bat and would swing only if the ball fitted |
| rather than results they did not capitalize on the | | | | into one of those cells. Likewise Warren Buffet says |
| potential of the fund therefore. | | | | wait for the fat pitch and right time on the perfect |
| Two things that investment education essentially | | | | investment before you strike. |
| covers are knowledge and conviction, which help go | | | | |