Here we present some investing wisdom of El Presidente
In the previous sections, we covered financial markets investors such as Warren Buffet, Peter Lynch, George Soros, and Carl Icahn. This time, to add to diversity of investing opinions, we add the famous real estate mogul, and now the President of the United States, Donald Trump. Many will argue he’s not a good investor at all. Whatever the opinion is, Trump is a very successful person.
Trump has made his great fortune in real estate. He has become famous for his money, women, a television show, and pompous quotes. Since it is a good idea to learn from highly successful people, below we analyze some of Trump’s comments.
“I try to learn from the past, but I plan for the future by focusing exclusively on the present.”
Although experience is necessary, it’s important to understand that what had worked in the past, may not work in the future. The world is changing and so are the markets. Always stay attuned to new developments. What was great last year may not be so now. Successful investing largely depends on telling when the tide has turned.
“It doesn't hurt to get more education.”
Once you learn about investing, don’t stop. Continue to educate yourself and keep up with present trends. Yet, remember that there is some timeless advice from great investors that doesn’t go out of fashion.
“Part of being a winner is knowing when enough is enough. Sometimes you have to give up the fight and walk away, and move on to something that’s more productive.”
When you find yourself in a losing investment that doesn’t seem to be recoverable, it is often better to take your loss and use the money for something more promising. There is a concept of a sunk cost- something money was already spent on. When making future decisions, sunk costs shouldn’t be taken into consideration, instead the future profit potential is what counts.
“Real estate is at the core of almost every business, and it's certainly at the core of most people's wealth. In order to build your wealth and improve your business smarts, you need to know about real estate.”
“Well, real estate is always good, as far as I'm concerned.”
A well-diversified portfolio is composed of multiple asset classes. Not only stocks, bonds, and gold, but also real estate.
”You're generally better off sticking with what you know.”
When investing, know what you’re getting into. Understand the investment, market, risks, trends. If you understand a particular industry well, you may consider investing in stocks of companies within that industry. For industries you don’t understand, you may consider buying ETFs or mutual funds. When it comes to real estate, your area of expertise could be your hometown and surrounding area.
”Sometimes your best investments are the ones you don't make.”
There’s an old saying that not all which shines is gold. When looking into an investment, dig deeper. If something doesn’t look right, most often it is better to walk away and look elsewhere. Don’t let greed take control.
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