Shares 2
Investing in shares, timing is also extremly important. Actually, I think there is a same method used in property investment. Try to buy when the mood is gloomy and prices are lower. Don't invest your money when there is a universal mood of investor optimism. Psycology thing!!!
As a university student, we are likely to believe popular market sentiment, because we don't have much experiences and we always lose control when we want to earn more money. It is easy to say that be a rational investor than to actually do.
Sunday, January 10, 2010
Monday, January 4, 2010
Week 6
Shares 1
In Paul’s book, Warren Buffett is surely mentioned in chapter: Investing in shares. This old man is so good at share investment, so smart, his style and skills are so impressive and useful. In this journal i want to focus on his selecting shares.
As we all know, he holds many mainstream companies’ shares, such as Coca-Cola, American Express. However, in 2008, he bought 230 million US dollars share of a Chinese company called BYD which is a fast developing electric car company. Why Buffett invested in this company? That’s all about his method of selecting a share, he only chooses good-quality, favourable long-term prospects, undervalued shares. I think it is the key to invest in shares, you have to take a long-term consideration. Somehow, forecast the prospect of a industry, a company .The maximum return you can get is buying shares of a company which can grow quickly at the bottom of its price and sell them in the future. BYD company has advanced electric car technic and can be forecast to get more support by the government as the environment is getting worse, and resourses are declining.
In Paul’s book, Warren Buffett is surely mentioned in chapter: Investing in shares. This old man is so good at share investment, so smart, his style and skills are so impressive and useful. In this journal i want to focus on his selecting shares.
As we all know, he holds many mainstream companies’ shares, such as Coca-Cola, American Express. However, in 2008, he bought 230 million US dollars share of a Chinese company called BYD which is a fast developing electric car company. Why Buffett invested in this company? That’s all about his method of selecting a share, he only chooses good-quality, favourable long-term prospects, undervalued shares. I think it is the key to invest in shares, you have to take a long-term consideration. Somehow, forecast the prospect of a industry, a company .The maximum return you can get is buying shares of a company which can grow quickly at the bottom of its price and sell them in the future. BYD company has advanced electric car technic and can be forecast to get more support by the government as the environment is getting worse, and resourses are declining.
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