Okay, so after our conversation here about penny stocks, I wanted to dig further because an interest was growing (again, not for serious investing, just for playing around) but I changed my mind after reading the forum. So I get to researching and read this article in Investopedia from three years ago that didn't feel right but yet, there it was. It was talking about how Warren Buffett admitted he made his wealth from risky penny stocks and day trading. *Then* I saw the April Fool's retraction. Okay now, I'm smiling knowing all you stock investors are rolling off your swivel chairs in laughter, but I'm a real estate and gold girl... and I'm sure glad I didn't rush out and buy a ton of penny stocks to hope for the same luck Buffett had. Moral of THIS story... be sure to read the small print.
I think you may need to expand the moral of that story. Seriously, if you were going to decide to trade penny stocks because that's how Warren Buffet got rich (glad you realized that's not true, but still, let's say it was true) that's an issue you need to address before putting any real money in the market. Be thorough. Be cautious. Be certain of your objectives. Never trust just one source. Verify, watch, spend time learning. No rash decisions. Etc. Or give your money to an adviser. There is no end to the people lining up to take your money in myriad sophisticated or unsophisticated ways. Trust no one (or very few) when it comes to investing.
Well... thanks. I made sure to word this (or so I thought! hehe) in a way that no one would think I was serious and would be so foolish to rush out and buy penny stocks totally willy-nilly without research. Fear not, All_is_not_lost... if I'd be THAT stupid, I'd deserve to lose it all, don'tcha think?
Agreed. If it sounds too good to be true, it is. If it's being pumped by dubious sources but not being reported by reputable sources, it's probably false.
I get your point here. I also tend to think there is little room for the concept of luck in real trading. There is a thin line between between a gambler and a trader. The difference is in the strategy, analysis, and discipline. Luck is for the crap tables. Penny stocks are surely not a proof-positive way to stock wealth by any means. The handful of success stories we hear about these rags to riches penny stocks causes people to mine for these stocks hoping to strike it rich.
Perhaps Buffett made his money on the penny stocks and maybe not. if he did he probably had it well researched and hit it at the right time.
Buffett's investment history is no secret. He's always gone after what he thinks are good companies with good management, competitive advantages, etc. And he's usually very, very correct.
No... like I said, it was an April Fool's joke and they stated that. Speaking of Buffett, I've been wanting to buy a book or two of his for my Kindle... anyone here have a recommendation on which is better to start?
That's a great post with a lot of good advice I'll be sure to remember. Are all advisors bad to trust though? It seems like there are so many out there that there would at least be a few to trust your money with enough to turn a small profit. Maybe even a small-town local advisor who is a nose to the grind stone worker instead of one of the flashy TV commercial ones?
