Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
One of Buffett’s favourite topics of late has been investors’ fascination with gold and with cash (in the form of bonds). As usual, Buffett explains a complex issue in simple terms.
Buffett characterises gold as one of the assets “that will never produce anything, but that are purchased in the buyer's hope that someone else – who also knows that the assets will be forever unproductive – will pay more for them in the future”.
I can already hear the gold fans shouting at this point. The last few years have seen the price of gold skyrocket.
With the risk of government default and the inflationary effects of '‘quantitative easing'’ (a gentleman’s expression for cranking up the printing presses to deflate the currency and stimulate demand), many see gold as something real, solid and measurable – an asset whose quantity can’t simply be increased at the whim of a nervous central banker.