How I Made 2 Million Dollars In The Stock Market...

Thanks, Dien. Also, I hope I didn't come off as pooh-poohing Buffet or Graham. I think there's a lot of merit in their methods and I'm glad to hear that you've had success with them (I know many people have). I just wanted to throw out another approach which has worked well for me.

Yes, the stock market can be exciting, but overall, I think it is a bit of a slower way to make money. If having your own business is like having a financial "car," then investing is like taking a financial "bus."

Ok, enough rambling today. ;)

Best to you,
--Phil

> I love the stock market - it's a pretty
> exciting place. It can really get addictive
> (though it's good to keep a cool head).
> Sometimes it can be a bit of a
> roller-coaster ride - but that's part of
> it's charm... Most of my personal
> investments go into stocks.

> (By the way, business can be exciting too. I
> still get excited whenever sales are being
> made!)

> Thanks Phil for the recommendation. I looked
> up "The Brainwashing of the American
> Investor" by Steve Selengut on
> Amazon.com and it looks very interesting!
> I'll try to get a copy.

> - Dien Rice

> Yes, the stock market can be exciting, but
> overall, I think it is a bit of a slower way
> to make money. If having your own business
> is like having a financial "car,"
> then investing is like taking a financial
> "bus."

I agree. I'd say running a business and investing in stocks are not really in the same category.

For the most part, running a business is an active pursuit, much like a job, that takes up much of your time. Investing in stocks, on the other hand, is more passive (unless you happen to be a day trader or do it for your job, of course).

So with that in mind I think you'd expect to earn more from running a business.

If you're a "value investor" or use "fundamental analysis" then running a business and investing in stocks are linked, because these people value stocks by trying to value the underlying business, rather than predicting where stock prices will be tomorrow.

And if you develop skills in valuing listed businesses, then these skills transfer well to running your business in terms of assessing the value of new projects and opportunities you can take on or leave.

Ok, I too will stop rambling now. :)

- Thomas.