Warren Buffett still bullish on America

More than five years have passed since Warren Buffett publicly proclaimed that he was buying American stocks for his personal account. The announcement came as investors were fearful of a complete financial meltdown and just a few months before stocks found a bottom. While many people doubt how much farther the bull market will run, Buffett is still bullish on America.

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The real purpose of investing

Why do you invest in stocks, real estate or any other asset class. Some may scoff at the question, but I am quite serious about this.

As famed venture capitalist Kevin O’Leary often says, “It is to make money”. This is a common answer but i do not believe it to be the absolute and total truth.

Upon much reflection, I have subscribed to the Jim Dines explanation as to why we truly invest and that is for lifestyle!

Whether one wishes to acknowledge it or not, the prime symbol of our world is money just as stone was in Egypt thousands of years ago. Because of this attachment to necessities and the luxuries of living, we invest and often continue to invest in whatever asset classes we believe will give us the lifestyle we desire.

Investing is the difference between Honda or Ferrari, a weekend in the mountains or a month long cruise. Remember this the next time you make your next investment decision.

When does the learning stop?

As you begin down your investment path, many words and ideas will come to you. It is very difficult at first because of the investment vocabulary utilized by others and the fact that everyone has to start somewhere which is usually at the bottom. It is very much an emotional battle of getting out of one’s comfort zone.  You must go through a period of uncertainty and haze and know that this time of not knowing what you are doing will eventually lift. If you have purchased 1000 different securities or properties in your lifetime, the next one will have a slight difference to it compared to the previous purchases. This leads to the question as to when you will ever have enough information to be 100% knowledgeable when investing.

The answer is that you will never ever have all of the facts to make a decision. There is always something new to learn.  No matter how small, the intricacies are always there. Ultimately, investing is not about the facts and figures as it is about your instincts telling you to proceed or not.