Ok, I know you’ve been quite anxious waiting for this blog post so as promised here it is. Hmm… so how should I start telling you his secret. Well, as I mentioned in my previous post he only did three things. Let me explain each in detail.
He used geometric progression and took a massive risk.
He invested at the right time and at the right place.
He was patient enough to wait for his investments to grow immensely.
Before I expound on these things further let me give you some trivia on my friend. First is that he does not have any stock market experience or whatsoever. According to him, he is just the luckiest person alive and I can attest to that. Second, he does not even know and use technical analysis (by the way, technical analysis is the use of charts and patterns in trading markets) to time his trades. He just buy them on speculation and it always works for him. Lastly, he started investing with P3,000,000 and according to him that was his lifetime savings. Great story huh? And one thing I admire from him is that he didn’t change his lifestyle after making a lot of money.
Having said that let’s go over the things he did in order to make millions in the stock market.
First, he used geometric progression. What is geometric progression again, it means that after he doubles his money in a stock, he pulls it all out and then places it in another stock and doubles it again. That is geometric progression, in other words what he did was invested the P3M made it P6M pulled it out, invested it again and until it doubled to P12M then pull it out again and invested it again until it became P24M and eventually to P44M or “$1,ooo,ooo”.
Next, he invested in the right time at the right place. Well its quiet simple, he invested in October 2008 near the bottom of the recession and guess what? He was able to get prices at a bargain. Well, you might be thinking how cheap stocks were at that time. Let’s just say that he was able to invest in JGS when it was a P1.00 a piece and where is JGS today… P25/share. WOW… just imagine if you invested P1M back then. It’ll be valued at P25M today…after two years, not bad for an investment huh?
Lastly, He was patient enough to wait for his investments to grow immensely. Well I know many investors who made money in the global economic recession back in 2008 but the problem is most of them reaped their gains early on. But that was not the case with my friend, he was able to hold on to his investments through the ups and downs of the market and eventually he was able to reap great rewards.
After hearing his story, I realized that there is really some truth behind the investing values of the legendary Warren Buffett and that is…
“Be fearful when others are greedy and be greedy when others are fearful”
It worked for my friend… maybe it will work for me and us too…in the future J
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