Showing posts with label 7 Levels of Investors. Show all posts
Showing posts with label 7 Levels of Investors. Show all posts

Friday 19 June 2020

'Don't confuse day traders with serious investors'

'Don't confuse day traders with serious investors': Warren Buffett and Howard Marks will win over time, Princeton economist says


"I don't confuse day traders with serious investors," he said. "Don't be misled with false claims of easy profits from day trading."


The economist and author added that almost all individual traders suffer losses over time, highlighting three studies to support his claim:
  • Active traders on Charles Schwab significantly underperformed a low-cost index fund over a six-year period.
  • Less than 1% of Taiwanese traders consistently beat a low-cost ETF over a 15-year period, and 80% lost money.
  • 97% of Brazilian day traders lost money, and just 1% earned more than the national minimum wage.
Malkiel also emphasized that savvy investors diversify and rebalance their holdings, manage their tax burdens, avoid trying to time the market, stick to their convictions, and use investment structures such as low-fee ETFs.


https://markets.businessinsider.com/news/stocks/warren-buffett-howard-marks-will-ultimately-beat-day-traders-malkiel-2020-6-1029321160


Saturday 16 May 2009

7 Levels of Investors

7 Levels of Investors according to Kiyosaki

Level 0: Those with nothing to Invest
50% of adult population

Level 1: Borrowers
Pay up to 24% interest
Anything owned of value is financed with debt

Level 2: Savers
Earn 3-5% on savings
Save to consume rather than to invest

Level 3: "Smart" Investors
"Head in Sand"
"Cynics" (fear + ignorance = arrogance)
"Gamblers" (faking it)

Level 4: Long-Term Investors
Earn 8-12% Compounded
Periodic, tax-advantaged, diversified

Level 5: Sophisticated Investors
Earn 25% and up
Focused, not diversified

Level 6: Capitalists
Earn 100% and up
Create investments to sell to the market

From Level 5 to Level 6, the investor assumes more responsibility.

http://www.theinvestorsparadigm.com/invest/Cash-Flow-Investment-Strategies.php?refid=325745514fd2a1b68a99288f9e8d37cc