Money, investments and wealth
Money, investments and wealth

The first rule is not to lose. The second rule is not to forget the first rule.
Warren Buffett

Emotional makeup is more important than technical skill.
Warren Buffett

Markets are designed to allow individuals to look after their private needs and to pursue profit. It’s really a great invention and I wouldn’t under-estimate the value of that, but they’re not designed to take care of social needs.
George Soros

The people currently in charge have forgotten the first principle of an open society, namely that we may be wrong and that there has to be free discussion. That it’s possible to be opposed to the policies without being unpatriotic.
George Soros

To improve your life you must necessarily know something (a lot) about finance and trading.
Carl William Brown

The best thing is to learn from other guys’ mistakes.
Warren Buffett

The most common cause of low prices is pessimism.
Warren Buffett

The stock market, like the Lord, helps those who help themselves.
Warren Buffett

Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.
George Soros

Once we realize that imperfect understanding is the human condition there is no shame in being wrong, only in failing to correct our mistakes.
George Soros

Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in the form of interest, income, or appreciation of the value of the instrument. Investment is related to saving or deferring consumption. An investment involves the choice by an individual or an organization such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time. When an asset is bought or a given amount of money is invested in the bank, there is anticipation that some return will be received from the investment in the future. The most common kind of investments are Stocks, Business, Real Estate, mutual funds or assets with capital risk and Precious Objects.

Stocks are literally certificates that say you own a portion of a company. More broadly speaking, all traded securities, from futures to currency swaps, are ownership investments, even though all you may own is a contract. When you buy one of these investments, you have a right to a portion of a company’s value or a right to carry out a certain action (as in a futures contract).
Your expectation of profit is realized (or not) by how the market values the asset you own the rights to. If you own shares in Sony and Sony posts a record profit, other investors are going to want Sony shares too. Their demand for shares drives up the price, increasing your profit if you choose to sell the shares.

The money put into starting and running a business is an investment. Entrepreneurship is one of the hardest investments to make because it requires more than just money. Consequently, it is also an ownership investment with extremely large potential returns. By creating a product or service and selling it to people who want it, entrepreneurs can make huge personal fortunes. Bill Gates, founder of Microsoft and one of the world’s richest men, is a prime example.

Houses, apartments or other dwellings that you buy to rent out or repair and resell are investments. The house you live in, however, is a different matter because it is filling a basic need. The house you live in fills your need for shelter and, although it may appreciate over time, it shouldn’t be purchased with an expectation of profit. The mortgage meltdown of 2008 and the underwater mortgages it produced are a good illustration of the dangers in considering your primary residence an investment.

Gold, famous art paintings or sculptures can all be considered an ownership investment – provided that these are objects that are bought with the intention of reselling them for a profit. Precious metals and collectibles are not necessarily a good investment for a number of reasons, but they can be classified as an investment nonetheless. Like a house, they have a risk of physical depreciation (damage) and require upkeep and storage costs that cut into eventual profits.

Losing some money is an inevitable part of investing and there is nothing you can do to prevent it.
Warren Buffett

I’m only rich because I know when I’m wrong.
George Soros

To learn how to be a good trader you must first learn how to become a real cynic!
Carl William Brown

After a certain point, money is meaningless. It ceases to be the goal. The game is what counts.
Aristotle Onassis

To make money you must know a lot about money and its religion!
Carl William Brown

You can’t make a good deal with a bad person.
Warren Buffett

No matter how great the talent or efforts, some things just take time. You can’t product a baby in one month by getting nine women pregnant.
Warren Buffett

It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
Warren Buffett

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