The Zero-Sum Game
As the title reads, "The Zero-Sum Game"
Theoretically, this means, the set amount of money remains the same, the money has simply moved from individual A to individual B (aka distribution).
Here's a simple analogy:
Today, Peter gains 10% while John loses 10%. The amount of money did not disappear or appear out of nowhere. It simply went into the winner's pocket& out of the loser's pocket.
Now, some investors are into growth stocks, some into dividends, some into value-investing. So on & so forth. There's no right or wrong.
The term "investment" can be extremely simple. However, people complicate things (especially mainstream media)
"Financial Gurus" start to pop up like tulips (no punt intended). Tongues wag, flashy houses, flashy cars.
Our job is simple. Steer clear of distractions. Listen but always question.
Distractions such as, "gurus", "get-rich-quick schemes", "emotions".
I understand that it is in human's nature to seek instant gratification. However, if you can't sustain that, then it defeats the purpose doesn't it?
The Lengendary Warren Buffett managed to sustain for decades and counting. Not by instant gratification, not by "gurus" telling him what to do.
He simply sticks to his principles & adapt to surroundings. Also, equipping his arsenal with options. Atthe end of the day, he wins every time.
A lot of times, less is more. When unsure, either letthings simmer down or average in tranches. Let time do its magic.
Cheers!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- PandoraHaggai·2022-05-08You have uncovered some simple but profound truths. Thank you.1Report
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