Monday, January 22, 2007
Finally, Some Sound Investing
I’ve never been a big proponent of investing. Or rather, I’ve never been a big proponent of beating the market. In my actuarial studies, I read numerous research reports about investing. Basically, it’s a crapshoot. If you look at all the money managers in the world, half of them beat the market, about what you would expect. And just because you beat the market one year, it doesn’t mean you will the next. Basically, you just have to get lucky. And last week, I finally did.
I’m a cautious investor. Generally, I like to put all my money in index funds and let the market do what it may. But I had a certain hunger in me. So I decided to be a little risky. And wouldn’t you know it? Last week, my investment almost TRIPLED! Because of the cold weather in California, the cost of oranges has gone through the roof. And I’m the proud owner of a whole bag of them!
I had to laugh when I heard that the price of oranges would be going up 2 to 3 times. Literally days earlier, I bought a bag of 10 oranges. It was an impulse buy, I have to admit it. I thought, “These oranges look tasty. And I think California’s due for some abnormally cold weather. I should buy a bag.” Now they’re sitting in my fridge, just getting more and more expensive with each passing moment. I’m sitting on a gold mine, I tell ya! Or an orange mine, as the case may be. This totally makes up for buying Nortel at $70 in 2000.
I’m a cautious investor. Generally, I like to put all my money in index funds and let the market do what it may. But I had a certain hunger in me. So I decided to be a little risky. And wouldn’t you know it? Last week, my investment almost TRIPLED! Because of the cold weather in California, the cost of oranges has gone through the roof. And I’m the proud owner of a whole bag of them!
I had to laugh when I heard that the price of oranges would be going up 2 to 3 times. Literally days earlier, I bought a bag of 10 oranges. It was an impulse buy, I have to admit it. I thought, “These oranges look tasty. And I think California’s due for some abnormally cold weather. I should buy a bag.” Now they’re sitting in my fridge, just getting more and more expensive with each passing moment. I’m sitting on a gold mine, I tell ya! Or an orange mine, as the case may be. This totally makes up for buying Nortel at $70 in 2000.
