Often, when we think of the rich, we picture the affluent living in mansions, driving expensive foreign cars and lavish vacations as portrayed in the media, but our perception of the affluent has been distorted by sleek advertising and Hollywood. Based on years of extensive research, Dr. Thomas J. Stanley and Dr. William D. Danko, discovered that people who live in expensive neighborhoods across the United States have actually very little wealth. Their book, The Millionaire Next Door, surprisingly reveals that those with great wealth, the multi-millionaires, could be one of your neighbors who lives in the same modest house for years and drives an old sedan. How could this be? Well, looks can be deceiving and it’s unfortunate that our society associates wealth and success with appearances, but appearances have very little to do with net worth (assets minus liabilities). Yes, one could look like a hobo and is probably wealthy although this is an extreme example. What the book implies is majority of millionaires do not look the part and act the part.
A lot of people oftentimes would ask me this question – How should I start investing ? I would often tell them that learning to invest takes time and that an investing rule of the thumb is never invest in what you don’t know know or understand. This could be well said about investing itself. Never start investing if you don’t understand what it is all about.
Stock market investing is serious business wealth is made and is dissipated in a matter of minutes or hours in stocks and the never ending cycle of bear and bull up and down is always there. However this does not mean that we can’t inject a little humor into it. We may loss money in the market or gain a lot but the important thing is that we continue to smile and enjoy living life after all its just money and material possessions and the greatest teacher once said “Beware of covetousness for a man’s life consisteth not in the abundance of the thing which a man posesseth”
The UpStart Stock Market Investing Workshop, unlike other lecture-type events (where you go home not remembering a thing), is a more hands-on and dynamic learning experience where the participants will really get to go through the actual process of determining which company/ies is/are winning investment/s!
“Investing is most intelligent when it is most businesslike” These nine important words probably summarizes in a nutshell the value investing theory.
Let me continue answering a question dropped by one of our readers on whether or not investing in an IPO is good or not.
One of our readers asked me the following questions: “How about those companies doing an IPO, are they good to invest at? You will become one of the firsts to buy their stocks, does it mean that the share price is initially cheap?”