I Just heard this investing tip on the radio.
Insider2
Posts: 14,452 ✭✭✭✭✭
Coin collecting and "investment" generally don't go together but I thought this was interesting.
Q: What is the first rule of investing?
A: Don't lose money!
Q: What is the second rule of investing?
A: Don't forget the first rule!
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Great investors lose money all the time. They just win bigger and more often than they lose. Coin collecting can be an excellent investment if you know what and when to buy (and sell). Similar to the stock market, thinking long term is generally a good plan.
Well, the way I see it is if that person on the radio, giving the seminar, or yapping on a tv commercial truly was making so much money investing, flipping houses, or whatever he is spouting on about he would be doing it. He has, however, found he can make more money giving others his advice , so who says what he says is right? Just him.
Do "Coin collecting" and "hobby" still keep company?
Lately with some non-coin collecting interests I have been looking for small lots of the things to buy, and then I sell off the extras individually or in smaller lots. I find that the per-item price is cheaper and if things go well I end up making my money back on the ones I sell and the ones I keep are free.
Nevertheless, the way I see it, you cannot argue with those two rules!
Those "two" rules are really a single rule, and I can argue with it. It is unavoidable that sometimes investments go down in value after they are purchased. If you follow that rule religiously, you would never sell in such a case. Sometimes it's best to admit a mistake and cut one's losses. The decision should be based on the outlook going forward, not one's entry price.
IMO, the way the rule is written - it assumes a savvy investor never loses money in spite of the ups and downs of the market. So in order to never lose money investments MUST BE bought and sold at the "right" time. A big enough investor can probably manipulate a market in a way he/she very rarely loses money by driving a price up, dumping, and buying back very low.
With coins I’m in the buy high sell low camp.
I'm not sure if you're trolling, or really believe what you just wrote, but it's full of nonsense.
2a. Buying an asset at a market low is no guarantee that it will appreciate as the overall market rises.
2b. Over the last 20 years, the "right time" to buy Apple or Amazon was pretty much anytime.
In any case, not sure this has all that much to do with coins, practically speaking. I'm out.
Thanks for adding your post to this thread! It is very educational for those of us who don't invest in anything.
Unfortunately, my post has to do with what I considered an interesting and VERY SIMPLE CONCEPT that has nothing to do with the real world of investment.
Perhaps your other question would have been unnecessary if you read the opening... "Coin collecting and "investment" generally don't go together but I thought this was interesting. Guess I'll need to write Off Topic the next time.
Unfortunately, my post has to do with what I considered an interesting and VERY SIMPLE CONCEPT that has nothing to do with the real world of investment."
So @Socrates, you're intentionally distracting us with bullsh!t, pouring chocolate syrup on it, and serving it up again?
Please reverse yourself several times and tell us how sad your mama will be.
Sorry, you are so close, so close.... Here's another 1000 words explaining how totally off-base you are, except, now, thinking about it, you may be partially right.. but still wrong, except that......
Please consider explaining how the Flat Earth theory, if it were true, would not affect world trade if someone can now dig a shallower hole that still goes all the way to China.
Well now.... I collect coins... I do not sell coins...Therefore, I am not investing with a view to profit...merely acquiring for enjoyment....which is an ethereal profit
Now on to my other major interest ... Cheers, RickO
Guns.... or Grolsch ?
@ColonelJessup....That would be guns... I do like Grolsch...however, my libation of choice is Cabernet Sauvignon....Not, however, when dealing with firearms...
Cheers, RickO
It IS possible to never lose money at investing...that assumes you hold an asset until the day when you can sell it for a profit and you don't consider the opportunity cost of that money...you may not lose money on it but your heirs will!!!
In terms of coins...as a small collector I feel it is almost impossible for me to make a "true profit" on a purchase unless I can somehow make an improvement to the coin (add a sticker or cross/re-grade higher)...a "true profit" incorporates all expenses: the value of your time, grading fees, shipping, taxes, storage, and also factors for inflation...
I used to get a lot of questions from "speculators" about buying bullion. sometimes guys would say they were "into it at $___ and they didn't want to lose money." the only thing I told them I knew for certain was that if the price goes down they could only lose if they sold. Coinjunkie is right on this and Insider is wrong, everyone "loses" money at some point, the smart investors just make it back somewhere else.
I liken the OP's argument to gamblers and people who play the lottery: they only talk when they win!!!
I recommend automatics after you've been drinking.
Better chance of hitting something.
My Saint Set
It's nice that you post Colonel. But I just don't get it. A couple of nights ago, a poster used such vile language directed towards me it was horrible. That poster has been deleted. I don't get it. Why the dirty words directed at Insider2? It is possible to convey a point without gutter language. Let's keep it clean around here. I know that you are very well known in the coin world but that doesn't give you the right to belittle people with foul words and esoteric enigmas. Clean it up!
Welcome back! I don't understand your post completely but it must contain a lot of your wisdom. BTW, I liked your former icon from "A Few Good Men" much better than this new one. While I still have difficulty understanding much of what you write, your posts were easier to find.
Show me an investor who's never taken a loss, and I'll show you a mediocre (at best) "investor"
Liberty: Parent of Science & Industry
I only did it less than twenty times. Most were done when prices were going up every week and coins made more profit than a bank account. What was needed the other times was knowledge of grading and which coins were condition rarities. Quick turnover coupled with that knowledge seems to be the key to profit. The Colonel can probably fascinate us with some good examples.
Actually, you could. One of the critical principles of investing is knowing WHEN TO TAKE A LOSS.
If you buy a stock and it goes down, using your rules above, you need to hold it waiting for it to come back. It might never come back.
Thanks but I felt no offense. You see, I'm not an investor. Everything being posted about investing by the members seems "sound." I wrote about something "cute" on the radio. ONLY a fool would believe an investor never loses money. The members who are posting must believe I'm a fool; but I'm glad they took the time to educate me.
Especially the posts I could understand.
The Flat Earth Theory would not affect world trade as China and the U.S. would both be on the same side of the globe. You would not dig a hole through, because there is nothing down there except, possibly, for Hell. There is no need to go to Hell as we have the PCGS Coin Forum and, if we are bad, PCGS Purgatory.
In a Flat Earth Model, your sailing would be across a flat surface instead of around a curved globe. This may even be easier than is currently the case depending on how thick the Flat Earth is. Gravity is toward the center of mass. If the Flat Earth is thinner than it is wide, then gravity would become less as one moved towards the edges. This would make longer trips easier than currently. On a curved globe, gravity at sea level is constant.
Therefore, we can conclude beyond any reasonable doubt that the Flat Earth would make shipping costs between the US and China significantly lower which cannot help but increase trade in both directions.
Based on this, we can safely conclude that the best way to maintain @Insider2's investing rules would be to buy stock in:
1. The John Birch Society
2. AliExpress
3. Trans-Pacific shipping companies
4. Collector's Universe
What part of "THEY ARE NOT MY RULES" don't folks understand?
Well, if they are not your rules, you are guilty of plagiarism as you have not cited another source.
Insider2, you have a sense of humor and you know what you are talking about........ . Dangerous combination. Confusing for the masses. You will never be popular!!!!!!
I know a little bit about investing .
I give away money. I collect money.
I don’t love money . I do love the Lord God.
Actually @Hydrant, the naughtiest word I used In that post was "bullsh!t".
I missed it, but I feel your pain.
Snowflake.
My favorite tip comes from Warren Buffett:
“Be fearful when others are greedy and greedy when others are fearful.”
It is my personal opinion that people are fearful, right now....
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
Colonel, after all I've been through in life, I will take it as a compliment that you refer to me as a snowflake. I've been called worse. Much worse. By some tough hombres with a much more colorful vocabulary than yours. By the way....the maximum penalty for impersonating a military officer is 3 years in prison and a $250,000 fine. I was never an officer. Nor have I ever felt the need to take on the title of one. Of course if you're from Kentucky and a chicken salesman that's a different story.
Semper Fidelis
What is the need for calling people names? STOP IT! I remember the 3 rd. grade "Sticks and stones can break my bones but words will never hurt me." Good saying. HELP! WE'RE NOT 8 YEAR OLDS. STOP THE NAME CALLING! PLEASE! It's undignified.
U've got to earn it first ....... then try to grow it
Will Rogers,
Nevermind 'return ON investment'.
I want 'return of MY investment'.
.... and folks ..... loosen up ..... I'd be so happy to be called
As cliché as it is ..... we are just a grain of sand in this life time
working hard or hardly working for a mere living so let us all be joyous and accept the opposite view with love 
Me too .... with a pointed spear with my Chard
MERRY CHRISTMAS and a HAPPY NEW YEAR! Wishing you all the best!
So arrest Jack Nicholson and Tom DeLorey, you sanctimonious yuck-a-puck.
Try out-ranking my father, 1st Lieutenant Joseph Finkel, USAR (KIA Monte Cassino, 4/11/44).
Have you ever read one of my Memorial Day posts?
You want decorum? Run for President
For people here, I'm likely their definition of a "snowflake". You might consider the irony that likely 90% of its Forum usage comes from your hero @fauxSophocles.
Are you trying to get yourself banned again?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Well, I hope no one comes here for actual investing tips!
I also hope no one comes here to learn how to communicate and treat people!
Colonel was right .....it was a bullshit post
I give away money. I collect money.
I don’t love money . I do love the Lord God.
Do you know why I was banned? I don't, and since it wasn't explained, I don't care.
What word or words, what phrase, do you find indecorous?
Whenever I used the "disagree" button, I gave a specific counter-argument.
The best you can do is "I hope @HeatherBoyd spanks you"?
(I think, in this particular instance, I will apologize in advance if it appeared I took the name of @SheWhoMustBeObeyed in vain).
I'm shocked. I always thought you were my biggest fan
)
(I only said that to hurt @jmlanzaf's feelings. S/He sleeps better that way
Are there any other reading comprehension challenged folks who agree with this post?
Thank you, I prefer to be unpopular rather than fawned over!
Have you ever heard the joke about investing that I posted?> @Hydrant said:
Here's one I heard on TV" "Can't we all just get along?" LOL.
I HATE ALL OF YOU!
RE NOT MY RULES" don't folks understand?
There is no cited source other than a nebulous reference to "radio" in the Title - NOT in the post itself. That is not a proper citation and would result in myself and any other conscientious instructor getting out their red pen.
I'm very disappointed that you, of all people, would engage in such sloppy writing. You are always insisting on clarity.
And here you are engaging in 3rd grade citations.
Rodney King. Boy, you just hate to cite properly, don't you?
That's attributed to a home boy named Warren, methinks.
And you can't make money unless you spend it. As to the side bar.... I'm easily amused and often abused.
When you check back see my post on the darkside regards the 2 1738 pillars.
I’d like your opinion on the difference in grades given by PCGS ..... thanks. 😊
I give away money. I collect money.
I don’t love money . I do love the Lord God.
Snowflake