Daily life, investment, and financial technology
I saw an interesting article today. It was written by Oh Yoon-seop, who is well-known as an investment advisor and a real estate consultant. As apartment prices have soared again recently (as of 2020.07) and people’s panic bows have continued, he wrote a warning. The phrase quoted among them caught my eye.
“Mr. Market is bipolar. Sometimes you’re out of your mind, so secure a safety margin and invest.” - Benjamin Graham.
Every word in the expression was so precious that I pondered it over and over again. And like that sentence, I felt there was no word to express investors well.
Mr. Market, of course, refers to the market and refers to the market participants. This is because market participants’ movements form a market.
“Jo-depression patient” is sometimes a metaphor for the state of mania = smiling endlessly and feeling agitated, and sometimes feeling down and crying every day.
And the bipolar patient, Mr. Market, who says that there is a “time when you’re not in the right place” would mean that the market participants are in a state where they can’t make a proper judgment or make a choice.
Securing and investing a safety margin would mean realizing possible returns and not overdoing it within your reach.
There is a cycle in any market. There is no market that only rises or falls endlessly. There are times when it goes back and forth for a very long time, but if you zoom in on the graph too, you’ll see that it’s going up and down again.
Market players seem to make reasonable judgments, but they are not. When others live, they chase after them, and when others sell them, they throw them in anxiety. Investors who are likely to judge rationally and make only a choice in their favor can’t do that at all, not at all.
Only a small portion of the total proportion of investors who can keep the easy proposition of “selling when others buy and buying when others sell.” This is not a problem that can be solved by mental training or by tying up one’s wrist. That’s just the nature of human beings, so we have no choice but to admit it.
That’s why the most important thing in investing is not to seek “timing,” but to focus on “market participation.” Rather than setting goals such as “buy from the knees and sell from the shoulders,” a mindset like “I should steadily expand my weight in this market” is more helpful.
That way, panic cells, panic bows, and greed to earn a lot in a short period of time will decrease.
It is important to learn one by one by one by just silently increasing my share of the market.
But there is an important problem. I don’t have any money trying to increase my share. How can I keep increasing my share when I don’t have the cash available? The share here does not mean only the means of investment that money can buy. Because the indicators of investment vary.
In the real estate market, it may be the number of real estate transactions, but it may be the number of transactions (accidental sales), or the stake. It may be the number of times you receive monthly rent or the number of bids you bid (not a bid).
The same is true of the stock market. How many shares you hold can also be a standard, but it can be the number of times you have studied and participated in several sectors or sold within a certain period of time. The time to analyze the chart could also be an experience of tearing apart the financial statements.
An investor’s life itself is an investment. Therefore, the weight of investment is how much the act of investing in my life takes up.
The same goes for my daily life.
I wake up in the morning and look at the status of U.S. stocks the day before and read major economic articles If you have new articles and videos from the following columnist or YouTuber, check them out, and if you have any questions about the content, you can share your opinions with your investors’ acquaintances. If you participate in stocks (set a certain date a month and are steadily buying small amounts of shares), you will buy additional existing shares, and you will also buy new outstanding shares. Check if there are any changes in the market price of the apartment you are interested in and check the number of auction items in the area you are interested in. Let’s also visit a community that contains information on real estate areas such as land and shopping malls that I don’t know well. See if there are any new things, such as various seminars, academies, and online lectures. In addition, I look through Japanese news headlines and sometimes memorize the names of Tokyo or Osaka centers or look into subway maps.
It seems like you’re doing a lot of things, but in fact, anything you mention is five to thirty minutes long enough. At first, it takes some time to figure out what’s going on, but once they become habit, you can get a rough idea of what’s going on with just one glance.
Like this, you can think of everything you do as an investment. This is because even if you don’t invest yourself, preparing for, setting directions, and eating your mind are all part of the investment.
One more word about the recent panic banging.
As real estate prices in Seoul are showing no signs of being caught, it is said that homeless people in their 30s and 40s are buying apartments as soon as possible. At first, I didn’t get to know much about this story.
I got a call from an acquaintance who had known for a long time that he had bought a house. the man who had no interest in real estate
And soon another acquaintance asks me to go see the house together. He said he should have a house to live in.
It seems certain that ‘newbies’ will appear in the real estate market.