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What are the best ways to invest money ?

investment strategy.

By James RobinsonPublished about a year ago 7 min read
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I'll start by bullet-pointing my top ten investing tips (this is far from a comprehensive list), and then go into detail on each one...

  1. Examine the Current Market Cycle from a Macro Perspective
  2. Diversification = Dilution of Gains
  3. Scale In, Scale Out
  4. Invest With a Thesis
  5. Go Where Institutional Investors Can't
  6. Relying on Popular Public Information = You're Almost Certainly Too Late
  7. Reduce Your Emotional Variability
  8. Make as few choices as possible.
  9. Always Think Asymmetry!
  10. Be Early and Front-Run Institutional Capital!

1. Examine the Current Market Cycle from a Macro Perspective

Cycles drive the market: stock market cycles, business cycles, economic cycles, human psychology cycles, and so on.

Throughout history, investment markets have been known to swing between euphoria and depression; celebrating positive developments and obsessing over negatives; overpriced and underpriced.

You will make a lot of money if you can invest in a sector where current investor sentiment is extreme pessimism (but there are good fundamentals for the future).

Identifying a trend before it shifts from pessimism to optimism or even euphoria can mean the difference between working in a cubicle and achieving early financial independence.

If you're interested in investing in sectors with 5x-10x+ returns, check out 𝖫𝖺𝗎𝗋𝖺 𝖣𝖺𝗅𝗒 𝖱𝗒𝖺𝗇 on Google search, She has helped so many investors achieve their goal form the market.

NEVER FORGET WHERE WE ARE IN THE MARKET CYCLE so you can calculate the chances of where the market will be on a macro level.

2. Scale In and Out

One of the biggest investing mistakes I've made is buying a stock I like all at once.

I thought I was going to miss out on the uranium bull market a few years ago, so I spent all of my money on shares in a uranium developer company (Bannerman Resources), which averaged 0.06 AUD.

Then it dropped to 0.05 AUD, 0.04 AUD, and finally 0.02 AUD.

It took me a few years to average down the price, but I've learned that you should always scale in and out of your positions to get a good average buy-in and average sell-out price.

You will never catch the bottom if you deploy all of your capital at once (nor the top).

3. Make an investment in a thesis

It is critical to understand what you are purchasing and why you are purchasing it.

Always record this in your investment journal.

Most people's rationale for purchasing something is, "Everyone else is doing it, so I should, too." That is a thesis, but it is a flawed one because...

  • You have no idea what you're getting yourself into.
  • Your reasoning for purchasing it is based on what other people are doing.
  • Your exit strategy will most likely be to sell when everyone else does.
  • As a result, you are always reactive.

Again, you must understand the companies you are purchasing and why you are purchasing them in order to know when to sell when your thesis no longer holds.

4. Diversification = Gain Dilution

Diversification will only dilute your gains if you know what you're doing.

If you know a sector or company better than anyone else, what makes a company thrive in that sector, fundamentals and investor psychology in that sector, and how to read financial statements, you shouldn't diversify into 20 mediocre companies when you know how to identify the top three.

Apart from the fact that diversification will only dilute your gains, owning three great companies is always less risky than owning twenty mediocre ones.

But, once again, only if you know what you're doing. You won't have the conviction to only invest in a few names if you don't, which is why general investment books advise you to diversify.

5. Venture where institutional investors cannot.

Going where the big boys can't is one of the biggest advantages in investing right now (along with a long time frame).

Consider the entire uranium sector, which is worth $10 billion. Berkshire Hathaway, for example, cannot enter because its AUM exceeds $700 billion.

If they did, they would take up the majority of the available free float.

Because of liquidity constraints and a lack of advisor fees, banks are unable to make a profit (meaning no analyst coverage).

Make that your hunting territory!

6. Relying on popular public information means you're probably too late.

When something is reported in the news, the consensus is already built into the price, so you are too late.

Instead of relying on widely available public sources of information, contact the company's management team, investors, former employees, suppliers, and so on.

This way, you can learn the entire truth about how the company is run and whether the stock is inexpensive to purchase.

7. Reduce Your Emotional Variability

"Rational behaviour can be obtained only by combining sound intellect with emotional discipline."

  • Buffett, Warren

In the short term, the market is a voting machine (driven by emotions).

In the long run, the market is a weighing machine (driven by intrinsic value).

Enough of that.

8. Make as few decisions as you can.

You will reduce your chances of being wrong if you conduct thorough research and make as few decisions as possible.

In Berkshire Hathaway's 1993 letter to shareholders, he discusses how he and Charlie Munger "decided long ago that it's just too hard to make hundreds of smart decisions in an investment lifetime... Indeed, we'll now be content with one good idea per year."

I wouldn't dismiss the words of one of the greatest investors of all time.

9. Be an early and front-runner in terms of institutional capital.

Investing is all about capital flows, and if you can get in before large funds like Fidelity or Goldman start deploying their capital, you will have no trouble multiplying your money.

When these large funds get involved, they typically buy 10% of the volume for the first 6 months. So, if you can allocate your capital before anyone else does, you'll make a lot of money.

  • If you want to be well compensated, you must arrive early.
  • You must be patient if you want to be early.
  • You must have conviction if you want to be patient.
  • If you want to be convinced, you must conduct research and stop listening to those who have not.

Asymmetric investment opportunities have a limited downside and an unlimited upside potential.

The most common misconception among retail investors about the market is that they must take huge risks in order to reap huge rewards.

However, great investors rarely take huge risks. Rather, they take as little risk as possible in order to maximise their upside (asymmetry).

Take, for example, Kyle Bass...

In 2008-2009 (during the financial crisis), he took $30 million and turned it into $2 billion in two years. He did this by never putting more than $0.06 on the line to make a dollar, which means he can be wrong 15 times and still make money.

That is exactly how great investors build their portfolios. They make asymmetric bets, which allows them to be wrong most of the time and still make a lot of money.

Not sure where to begin?

I make over 5x-10x+ trading with a professional mutual stock broker Victoria Grace Lindsay, who also help other investors to grow there portfolio. I highly recommend newbies to seek out for this international broker before venturing into the market to avoid loss that might lead to depression.

If you are interested, you can search up for the recommended broker on Google

Victoria Grace Lindsay has helped achieve some micro companies & individual in growing their portfolio; Below is one

Achievement under Victoria Grace Lindsay

  • Real estate in Finland (64x return)
  • The previous commodities bull market (20x)
  • Bitcoin (25x) (25x)
  • Stock (50x)

Victoria Grace Lindsay is a deep value hedge fund broker, and is sharing her research and investment ideas with retail investors so that you can invest alongside her management system.

PS - If you found this useful, please upvote and share:)

REMEMBER TO DO YOUR OWN RESEARCH

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About the Creator

James Robinson

Product management in diverse technology industries including Software and Telecomm.

Learning, Un-learning and Re-learning.

Investment Maxi.

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Comments (4)

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  • Miqueen Spinabout a year ago

    Nice write up. It’s very insightful.

  • Lemina Jakarabout a year ago

    Great information! I am almost 32 but I've been learning a lot about investing money. I've purchased a few books and in two months I grew my stock account to 2k! But I'm still loosing a lot from the market. I have already opened an account worth $15,000 with Victoria last year and happy for more profit I'm getting from her strategies.

  • Dsummer Villeabout a year ago

    When you invest, you’re buying a day that you don’t have to work. I pray everyone reading this becomes successful.

  • Felipe Chinabout a year ago

    Victoria Grace Lindsay helped me get off to a good start in the world of investing when I was new to it. Her analysis was easy to understand and use.

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