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Rules of investing.

December 9, 2013

I made a naive mistake joining a few on-line investing groups. I immediately had an argument with a few investors who believed that investing is inherently a speculation. I responded, “Most of you are lazy. You don’t make enough money investing because you change the process from a carefully selective behavior (Kahneman System 2) to a speculator gamble (Kahneman System 1) which is inherently heuristic. Investing using Kahneman System 2 is a calculating process where you reduce risk  by knowing how to discover and apply the right information that goes into your decision-making about companies and timing.”

For those of you who are listening: You can increase the probability of being able to identify a winning company better than the pros do because you are not constrained by the “system.” You can analyse a winning time to buy the shares using my  BLASH system.  Get smart, “ride” with  CEOs like Besos, Page, Musk and Jobs, analyse quarterly earnings, e.g., be ready to buy TWTR during the next 8 quarters! Time it! Become an expert in analysing P/E, PEG, Md/Me, 100-MA, support/Resistance levels and so on. If you do your homework right there is no reason why you can’t earn 25% CG per year for 10 years like I do! The key is love of money and commitment to mastery of Kahneman System 2. You do it right and it’s like riding on Daniel’s Nobel price train in economics. Hey, I hope you don’t have the common problem of relaying too much on your own beliefs about investing. 99% of them are speculation.

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