My Investing Philosophy

by T. S.
(Franfurt, Germany)

My Investing Philosophy 1. Invest in companies that make a real, tangible product (i.e. something you can actually touch and see) 2. Try to avoid companies that only make stuff that people stop buying when there is no economic boom 3. Diversify To summarize most of this in one sentence: What does almost everybody use almost everyday? On the basis of this, I have invested in cars (almost everybody drives). I invested in water utilities en electric utilities, because everybody needs water and electricity. I invested in energy, since most people need energy to keep themselves warm. (I try to avoid oil and gas and “go green”, but that’s of course your own choice). I invested in wood, in paper, in news media. I invested in transportation (water, air, and rail). I have money in telephone and cell phone, computer chips (logical and also memory), bananas, wine, farm machinery, animated movies, photography, tires, hotels, tableware, computer storage (hard drives and flash drives), courier services. I am not recommending any particular share, but this way of investing is working very well for me. I have hardly any money in finance, because I am of the opinion that’s mostly a big scam operation which doesn’t make a real product. Since this way of investing is working for me I publish it here and hope someone else can have success too.

Barry's Reply:

I was trading very actively during the late 90's tech & internet stocks boom. Those were crazy times. If investors had taken your advice then, most would've been far better off after the dust settled a few years later.

For those reading that are too young to remember, many, many tech & internet stocks became worthless or discounted by 90%- 95 % after the 2000 bear market, after having experienced huge increases. Some stocks like Amazon and Ebay survived, because they actually had a real business model that could produce real profits, but so many other internet stocks were just smoke and mirrors, and came crashing down destroying people's 401(k)'s and retirement plans. That's partly the reason why so many people years later got sucked into the real estate boom, because so many got burned very badly in the stock market and they were looking for another investment.

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