I’ve been called the “best investor in the world”, in Twitter, by James Altucher. That qualifies me. Big time.
But, let me caution you before I give you advise on how to make money:
- you should not follow my advice, and
- If you are a man, you should probably stop reading right now, because my approach is very feminine and not of the usual type. If you are a man you should analyze charts, dissect, read SEC papers, etc.
My ideas on the other hand, are, well, the genius kind that is ridiculed at first, then laughed about, then criticized, and finally accepted as obvious. Or so I would like to think.
Let me clarify ONE thing:
I am talking about investing for people like me, who don’t have a lot of money and also have too many things to do to watch CNBC.
This is for someone who has some money and wants to buy stocks so that their money will grow together with solid companies instead of earning a pathetic 0.5 percent (or less) in a savings account.
This is my case because when I was fired from the dream of corporate America (thank God!) I was given back control of my 401K, which by then, and after 10 years under the management of the Merrills and the Sterns and the HUGE firms that came to talk to us with Power Points, had returned negative numbers. Year after year.
Now my portfolio is under my own, non-MBA, management, and it’s up 100% in the past few years.
Now that we are clear, let me tell you what I do:
- I never look at charts, they are useless.
- I never watch CNBC, they never get it right, and they never apologize.
- I never listen to Warren Buffet because I KNOW he does not have my interest at heart. He is NOT my grandpa, nor do I want him to be.
- I never read news. They are all trying to scare me into things that never happen and frankly they bore me.
- If my intuition changes about a company I relocate the money at once, that is why I remind you above, meaning: make your own decisions. This is entertainment.
- I don’t listen to James. He did lose $15 million at one point after all. But I still love him.
If I was a ‘silicon valley’ investor, meaning one of those super-smart guys with money who are buying portions of companies, you know? The type of person that is getting into ‘rounds’ and stuff, rather than buying a few stocks, then hell YES! I would look at “valuations” and “earnings” and “P/Es” and talk to them about their “platforms” and their “clouds”, and ask questions like: is it a series A, or B or C?
I would also look at what institutions, and Venture Capitalists are courting them and wanting in. I would do all that.
But I am not a Silicon Valley smart guy with big bucks, I am a little gal, looking to invest in good companies, so my money can grow as the companies grow. OK?
This is my philosophy:
- I invest in things I use, companies with whom I interact daily, and whom I think are providing a very good service.
- I buy small positions, I figure Google (on which I got in at 500 dollars (bought 10 shares) and is now at over 1000 will eventually get to 100,000 per share) call me crazy or call me genius, up to you. Let’s talk in a few years.
- If a company will be here five years from now, and if in five years they will be thinking about how to still be here five years from then, then they are something I consider.
Why? Duh. It’s Google. No need to look at charts, no need to listen to any CNBC head talking.
This is what you need to know about Google, they are wiring the world (starting with Kansas), they are making the driver-less car, they are bringing us google glasses, they are in my phone (which I prefer now over the I-phone), they are re-defining what innovative means, and they have the best brains in the world.
AND…. You used it today more times than you would like to admit. Confess!
Why? Amazon is the supermarket of the world. Well, not yet, but it will be, it‘s headed there.
I visit their page at least 5 times a day, and order a lot of things from them instead of driving around to lots of different stores, for example, I get: Sun-tan protection, aluminum foil, toilette paper, sugar, coffee in bulk, all delivered to my door, by Amazon. I love them.
They also have a LOT of other companies, like Zappos, where I get all my fabulous clothing / shoe shopping done and can return at no cost if it does not fit. Again Duh! With the stock at about 250 to 350 dollars right now, in this little gal’s opinion, they are cheap.
Not only that, but Amazon is also at the frontier of figuring out the reinvention of the self-publishing industry, no other company can do it like them, they are into video, books, music, any goods you may need, and they help small businesses by letting them put their shops online.
Why? Facebook is the only thing that my 14 year old is glued to like her life depends on it (together with Instagram, which FB owns), and she is the generation that is growing up now. Facebook is integrated into her DNA already.
AND Facebook (company) is the most wonderful stalking site on the world bar none. Another duh. They also do amazing things with advertising. Never mind the charts, they are good.
They bought (cheap) the George Lucas rights to Star Wars. Disney will make like 3 more Star Wars movies. Need I say more? They are so cheap right now it is scary.
Why? For one, they are the only company that reply to my Tweets. No biscotti in the Grand Central store? I tweet them, they pay attention. If they stop doing this I will get out of the company, but so far they have been responsive and they care. Besides, they fuel american brains with their coffees, and lattes, and spiced pumpkin works of art. I love my Starbucks caffeine fix.
Why? Twitter is the nervous system of information of the world, and they are not going anywhere. If you want real news, in real time, if you want to know what is happening on the ground, anywhere, Twitter (company) is where you go.