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What Are the Best Investments in 2020?

Discussion in 'Investing' started by Bridget Mallory, Oct 5, 2020.

  1. Bridget Mallory

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    Is it wise to invest at this time? If yes, what are the best investments to make this 2020?
     
  2. TomB16

    TomB16 Well-Known Member

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    Hi Bridget.

    You make an interesting post. Please keep in mind, everyone has a prediction for what will happen with the market and with individual companies but these predictions are barely better than a magic 8 ball could make.

    We have considerable wealth in the market and we are comfortable with that. I believe we will see significant values before the end of the year but that prediction is also little better than a magic 8 ball could make. Because of this belief, we have held back cash that would otherwise be re-invested. The cash is piling up but we did commit a portion of it into an IPO. That commitment happened back in June and the shares have yet to be issued.

    My philosophy dictates it's always good to engage in good business. I believe there is a strong chance this IPO will be a good business, based on the people involved, but the result remains to be seen.

    Even at that, we have significant cash idling, waiting for another market dip.

    Another factor for us is that we are older people. We can't afford to put cash into an investment that goes down for five years, as we need cash to live on. This makes us more driven to either find a bargain or just keep the money in a high interest savings account. Perhaps you are in a different situation.

    Your other question, determining the best investment, is going to take a bit of time. I plan to put considerable effort into solving that riddle, once I finish determining the one true, correct, religion. I'll get back to you but, in the mean time, you will find this entire web site and contents are dedicated to determining the best investment. Happy reading and best wishes.

    :)
     
    WXYZ likes this.
  3. renegadelook

    renegadelook New Member

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    If you have extra money, then why not.
     
  4. Bridget Mallory

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    I'll just observe
    Really great advice, thanks a lot!
     
  5. TomB16

    TomB16 Well-Known Member

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    Now that I've answered your questions as best I can, please allow me to give you some unsolicited advice in point form.

    - Everyone makes money in the markets. Everyone. It's like Las Vegas where every gambler and every casino makes money. Think about it. A lot of people are lying. The point is: you're on your own. We all are. Do not fall for the "I make a lot of money so listen to me" line. Everyone makes a lot of money when they tell it. Reading market statistics reveals it is nearly impossible to make money trading but very easy to make money with long term index investments.

    - In the 37 years I've been investing, the people who have done the best are those who have not tried to time the market. Instead, these people simply buy solid, long term, investments and hold them for a lifetime. People attempting to time the market all claim to make big money but every one of them are still working. My Mom who doesn't try to time the market and isn't even the most savvy investor has lived off investment income for 15 years and her net worth is higher today than it was 15 years ago. If I called her right now and asked her the price of her stocks, she would not know. She looks at her investments one to three times per year and makes changes a lot less seldom than that.

    - There are more investments than the stock market. If you have a spare 15, 20, 25 thousand dollars, consider alternatives such as starting a business, converting part of your house into a suite for rental or AirBnB, and so on. It just comes down to finding a way that you understand and are comfortable with to make money. Market investments are just one choice.

    - Stay away from managed investments.

    - Stay away from anuities.

    - Accept that you are not going to get rich quickly. Nobody does, especially those claiming to have done it. Investing is about getting rich slowly.

    - Believe in yourself. You are the best money manager for your wealth on this planet.

    - Understand, for every 100 things that are said, 99 are lies. This holds for corporate reports, other investor's self assessments, children's description of what happened at school today, everything. The truth is out there. Honest people are out there. Great patience is required to find the truth so be patient and never buy anything because you're worried about missing out on something. There are many thousands of companies out there so even if 99% of companies are not honest, there are many dozens that are both honest and competent. Hint: look for people who work hard and avoid the people who are always telling you how great they are

    - It's OK to be scared but understand you are going to make mistakes so there is no need to be paralized with fear. Everyone makes mistakes. The people who claim to not make mistakes make them too, they are either too stupid to realize it or they are lying.

    - Investing is turning time into money. Find a well run company that is available at a mostly reasonable price and hold it for a long time. It's a recipe for investing that has always worked. "The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett

    - The fact that you have saved some money and are trying to learn how to invest shows that you are making an effort to have a better future. You can do this.
     
    #5 TomB16, Oct 9, 2020
    Last edited: Oct 9, 2020
    WXYZ and rg7803 like this.

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