What are the missing ingredients??
Wall Street fabled sayings come to mind..
"Buy low and sell high"
"Nothing ventured, nothing gained"
"Don't put all your eggs in one basket"
"The bulls get something and the bears get something but the pigs get nothing"
In the essence of investment, why being smart not a sufficient condition for being rich?
2006-09-01 04:24:45 · 12 answers · asked by katrina_ponti 6 in Business & Finance ➔ Investing
Investing is a process of making decisions today to achieve results that will not be known until tomorrow.. there's that element of uncertainty in every investment decision. Nobody knows what tomorrow will bring because nobody can control everything that is going to happen tomorrow. The overarching reality, the launching pad from which investment theory takes off, is that being wrong on occasion is inescapable, even for people who are SMART.
2006-09-07 13:34:36 · update #1
What "interesting" answers to your good question!
I'm guessing most people don't take the time to educate themselves on what it takes to be both.
There are several criteria to becoming "rich." Smart is not necessarily one of them, but it certainly can help. There are plenty of very, very smart people who are barely making it paycheck to paycheck, so I’d have to say being smart is not a prerequisite.
That said, here's my list of the ingredients needed.
o You need a plan. Willingness and ability are nothing without a plan. True, dumbluck can get you there, but I wouldn't bet on it. After all, I wouldn’t bet my retirement on a lottery ticket.
Now the plan can't just be a few random words, but it has to be something that's a proven method/plan for success. So, if you had a plan to pick a random stock each week and throw money at it, that isn't quite the same as picking an uptrending stock in an uptrending industry that has recently tested support and set a new high.
o You need money management. As part of the plan, you need to have a money management strategy so you're not risking everything on one result. Too many people don’t know when to cut bait. Live to fight another day comes to mind. So that’s why money management’s so important.
o You need discipline. You can have the best plan in the world and if you don't follow it, the plan's useless. Whether you start a business or invest, you need to have enough discipline to follow your plan.
o You need time. Nothing happens right away. Some plans come to fruition earlier than others, but what they all have in common is some time for the results to develop.
o You need discipline! It's sooo important to have discipline to follow your plan, I listed it twice!
That's about it.
Let me know if you have any other questions/thoughts. Hope that helps!
2006-09-05 12:11:17 · answer #1 · answered by Yada Yada Yada 7 · 3⤊ 1⤋
Read The Millionaire Next Door and The Millionaire Mind by Thomas Stanley. The main common factor they found amongst self-made millionaires was perseverance. It takes time to get wealthy and most people spend their lives trying to get rich quick - when in the real world, taking 10 or 15 years of hard work to get rich IS quick!
2006-09-01 04:30:21 · answer #2 · answered by David Steadson 3 · 1⤊ 2⤋
Luck plays a huge role in the market. What about the sorry guy who invested the day before Black Tuesday?
2006-09-01 04:27:44 · answer #3 · answered by Dre 2 · 3⤊ 2⤋
Smart how? Book smart? Street smart? Money smart? There is no general "smart". Einstein probably would have done lousy in the market, but a guy who went to a community college might break the bank. You have to define 'smart"
2006-09-01 04:28:13 · answer #4 · answered by bodinibold 7 · 3⤊ 3⤋
Because everything is relative. Including being rich being smart and being happy.
2006-09-03 10:52:44 · answer #5 · answered by Cali Girl 5 · 2⤊ 1⤋
I'm smart enough to know that money can't buy happiness...
2006-09-01 04:30:48 · answer #6 · answered by svmainus 7 · 2⤊ 3⤋
you dont need intelligence to be rich. For example, many rappers, basketball players, reality-show celebrities, britney spears, etc...
2006-09-01 04:28:22 · answer #7 · answered by Melia 4 · 2⤊ 4⤋
I am both smart and rich ;-)
Why do you have no respect for yourself...that you have to advertise yourself as a porno-chick?
2006-09-01 06:53:12 · answer #8 · answered by jazzzame 4 · 1⤊ 4⤋
I am rich, and smart.
2006-09-01 04:46:46 · answer #9 · answered by Anonymous · 0⤊ 4⤋
No one can predict the future.
2006-09-01 06:02:33 · answer #10 · answered by olympus3030 1 · 0⤊ 5⤋