QUOTE OF THE DAY: AN INVESTOR SHOULD NEVER SPECULATE..

Quote of the day is credited to Benjamin Graham. He was a British born American economist and professional investor and was Warren Buffett's mentor (bet he learned most of his investing skills from this guy). He is widely considered as the father of value investing that is, investing in a thing or company that has or provides value irrespective of fluctuations in the price of shares or stock in the stock market.

QUOTE:

"An individual investor should act consistently as an investor and not as a speculator."

MORAL:

The likes of Warren Buffett and other great investors have learned a basic truth by not giving in to the ups and downs of the stock market, they have learned to invest in value chain companies instead of investing mainly in the value and price of shares. As Warren Buffett will gladly say that 'acquiring a business with solid management is like looking for a spouse', this goes to show the emphasis placed on investing in a business with solid management and one that has no pit holes in their balance sheet and cash flow flow statements. 

For you to be successful in the game of investing, it is expedient that you learn from these great investors by investing in businesses or industries that have solid management system and focuses more on providing values and not the one that focus mainly on providing for their pulses without adding value to either the end consumers of their products and services or the share holders and stake holders of the company. 

In conclusion, an investor should consistently remain an investor by investing in value chain companies and should never speculate because no matter how hard you try, no one can predict the market. I will leave with you sayings from one of my favourite Best Selling Author, Robert Kiyosaki about the five major types of investors;

1. The accredited investor earns a lot of money and has a high net worth.
2. The qualified investor knows about the fundamental and technical aspect of investing.
3. The sophisticated investor understands investing and the law that guides investing.
4. The inside investor creates investments for others to invest in.
5. The Ultimate investor which is the category of most of the world's richest individuals becomes the selling Shareholder and not the buying Shareholder.

The question now goes this way, which among the five investors are you?     

Reference: http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/July-2014/which-of-these-5-types-of-investors-are-you.aspx