Damned politicians, first they go begging for our votes, drooling on our ears with all sorts of promises and then, before we notice, they rise to our humps to spur us on with the whip of the crisis. It Supposes that they serve the people, but paradoxically they have no obligation to fulfill their contracts, unlike the rest of the world. Specialists in semantic diatribes, constantly betray their electors with total impunity. Then the former businessmen, now well named as “entrepreneurs”, they always have a place in their organizations for profit in order to politicians can retire when their mouths ache them by having lied so much . Never mind which is their political sign, they are the executives, armored officers of a corporation called “Government” , as corporations really serve to their shareholders, not society, shareholders of the government are not the people but businesses and banking, in brief, the stock-in-trade. They are the triumphant class of the XXI century, as in other times they were the military, the clergy or nobility. Immune to financial colic suffered by the Western society, They are getting to move forward the imperatives of capitalism with cockiness and shamelessness, but they can not cure the system disease.
Capitalism would need an army of Keynes, and there is hardly any, to face this fucking madness which is in what the stock market has become , the financial maneuvers are threatening the system itself.
The work is no longer a virtue, devalued by the consecutive labor reforms, personal effort is only rewarded when you have an economic benefit as scientific knowledge is useful when it has military application. The real way to make money today, do not pass by create jobs, invest with aim is enough to get nice profit, although in this way the money never leaves the circle of those who have it, while debt accumulates in the coffers of the public sector, at an alarming rate. Basically this system really is not reliable, since it is dominated by mental constructs, human desires, illusions and aspirations entirely foreign to the real needs of society.
Warren Buffet is a figure of great importance in the world of the stock market, a prominent priest of the official religion, in fact he has one of the largest personal fortunes of the globe. Looks like a smart guy and austere inside the disproportion; he apparently is not too bad person after all. I do not know much more about him, apart from always laudatory references, from the news.
I recently discovered a Buffet’s catalog with the twenty basic principles to keep in mind when investing and are not the incomprehensible musings of a genius of finance but the simple expression of a sound mind, but distils the inherent “zero empathy” characteristic of capitalist philosophy, those rules of the game that anyone seems to have put, but which Buffet dominates perfectly, I think. I’m no economist and I have no money, so I’m not the most suitable for conducting this post in the most eloquent way, but I will dare to reflect my impressions here, perhaps an exercise that everyone should do from the different perspective of each and which would be very interesting to compare ultimately. Let’s begin:
1. – Never invest in a business that can not understand, as complicated technologies.
This argument is crucial to understand why we are poisoning themselves with the fossil fuel industry, while the water car patent and fusion energy, have stayed for decades in a safe-deposit box of some multinational or the filerooms of the laboratories of some universities. This apparent parochialism has been theme of discussion, for obvious reasons, between Buffet and Bill Gates, who now are good friends.
2. – If you can not see fall down to 50% the value of your investment without panic, do not invest in the stock market.
Be patient, however, in the popular imagination is fixed the snapshot of the executive ousted, victim to despair, falling off by the building of offices, down.
3. – Do not attempt to predict the direction of the stock market, economy, interest rates or elections.
It means do not speculate, what a chance, just the opposite of what happens too often, since the operations based on predictions of the evolution of markets, stockoptions and others are in common use, not the exception.
4. – Buy companies with good track record of profits and dominance position in the markets.
The popular proverb illustrate us: “who snuggles up to a good tree, good shade shelters him,” but although to side with the stronger is certainly intelligent, but rarely is more fair and not always convenient.
5. – Be fearful when others are greedy and vice versa.
You have to go countercurrent, this is interesting because it is the practical evidence of capitalism’s political doublespeak and also shows the inherent aggressiveness of it. See that greed is not questioned, in a knife fight would be the equivalent of “expected to pass the blow and then stab them.”
6. – Optimism is the enemy of the rational buyer.
Has recently been demonstrated by a series of tests on a famous American university, that the “rational buyer” does not exist. In these tests the students, future economists, ended up paying twenty eight dollars for one of twenty.
7. – The ability to say “no” is a huge advantage for an investor.
What a novelty…
8. – Much success can be attributed to inactivity. Most investors can not resist the temptation to buy and sell constantly, but the cornerstone must be the lethargy, laziness bordering.
Excellent argument, which reveals how far from the useful work, is the world of the investment and how the speculative precept underlying in this activity.
9. – The wild swings in prices are more related to the behavior of investors than to business results.
Economic bubbles are an unavoidable result of the fact that stock traders are human beings, people with the ability to promote chaos as a stupidly simple rumor can result in a storm
10. – An investor needs to do few things well if you avoid big mistakes. No need to do something extraordinary to get excellent results.
An investor needs to do very few things, point. Is one of the things that makes it so attractive this activity ..
It certainly seems smart, if we consider that it is working with statistical averages, not exactly the same as using real data that must incorporate the social impact, to be exact. Workers are immersed in these equations, prisoners between the integral of the level of trend and the derived of benefits of short-term and we are not seen, the brand hiddens it all and the president of the company is like the facade of a building. Buffet however acknowledged in an interview that the facades are always misleading and says he prefers to personally probe the working environment before performing an operation. What perhaps should be the point twenty-one of this catalog, having contact at least with the real business of the company and the conditions under which it is performed the function. But the market’s God and his prophet Adam Smith, whose name looks more like a pseudonym, characteristic of one who has committed crimes and prefers to keep secret his true identity, they both do not allow the slightest shred of ethics that does not involve a profit.
12. – Focus on return on investment (not in earnings per share), the level of debt and profit margins.
You have to fire people, reduce the activity, so you can afford those expensive executives who look so good in the press.
13. – Always invest long term.
This item is a redundancy point number 8.
14. – It is absurd the advice “never breaks taking a profit”.
Is this perhaps an attempt at philanthropy?, In any case is dark …
15. – Always remember that the stock market is manic-depressive.
Who has money, is afraid of losing it, usually the money is very scary and easily carried away by panic ….
16. – Buy a business, do not rent stocks.
17. – Look for companies with large market, strong brand and loyal customers, such as Gillette and Coca Cola.
God save Nike! Who cares if it has subcontracted companies, with slave child labor in Asia …..
18. – Also interesting are some companies with established brands but are undervalued by temporary difficulties. To find these opportunities should be exploited bear markets.
Buy good and cheap … …..
19. – Look for companies with high cash generation capacity and, once started, do not require major reinvestment.
Invest in companies with high profits and low overhead …. do not tell me…
20. – when more absurd is the market behavior, the better the opportunity for investors methodical.
Troubled waters, profit for fishermen, says the proverb ….