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Friday, November 1, 2019

Investment strategies Assignment Example | Topics and Well Written Essays - 250 words

Investment strategies - Assignment Example His comments were confirmed by the company’s board of director who proposed the split of stock of the soft drink manufacturer that was worth forty dollars almost a century ago would now be worth 9.8 million of dollars. I learned about the power of patient when it comes to saving (Hagstrom, 24). The author states that forty dollars in 1919 is quite different from forty dollars in the current world. he states that despite the rise in inflation, rise in the price of sugar, the world war   and the great depression that targeted the financial market investigating in the coca cola company was still the best idea as the outcome was more than the money invested at the time. I believe that a knowledgeable investor should have patience while investing.  Ã‚   Even though it may take a long time to achieve the best outcome, it is still the right thing to do. Buffett’s advice on the dangers of timing and long time investment is also quite important. He asserts that it is dangero us to time the market so that investments are done when the market is on the rise and sell when the market is declining. He states that the move is only better than a random chance and that it is dangerous to invest with attention based on time of the market (Hagstrom, 30). He stresses that it is not essential to understand whether the stocks are being bought at the right time since it is often considered an arbitrary imagination. It is only significant to understand the relative price that is being paid for the business.

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