Very newbie question..

[jimbob1904]

Hi there,

Ive spent the last 2 years going watching a friend of mine make small (for future long term) gains. During this time ive been trying to pick his brain but I dont think hes very knowledgeable as he cant answer certain question for example. We all look for these companies to make gains and hes got money across 4 in different fields and is gaining around 25% a year on his investment.

Google made 35% over the past 12 months why doesn't everyone just invest in more obvious companies like this? Is there something totally obvious i am missing?

 

[timsk]

Google made 35% over the past 12 months why doesn't everyone just invest in more obvious companies like this? Is there something totally obvious i am missing?

Hi jimbob,
Welcome to T2W.

The thing about this game is that it looks so easy, obvious even, until you try it for yourself that is. There's even an industry cliché that neatly sums this up: 'trading is simple, but it ain't easy'. In a nutshell, I don't think you're missing anything necessarily, but I suspect you're confusing simple with easy.

Tim.

 

[malaguti]

Hi there,

Ive spent the last 2 years going watching a friend of mine make small (for future long term) gains. During this time ive been trying to pick his brain but I dont think hes very knowledgeable as he cant answer certain question for example. We all look for these companies to make gains and hes got money across 4 in different fields and is gaining around 25% a year on his investment.

Google made 35% over the past 12 months why doesn't everyone just invest in more obvious companies like this? Is there something totally obvious i am missing?

will google make another 35% next year..and the next..and the next after that

 

[CityMasterTrader]

Hi there,

Ive spent the last 2 years going watching a friend of mine make small (for future long term) gains. During this time ive been trying to pick his brain but I dont think hes very knowledgeable as he cant answer certain question for example. We all look for these companies to make gains and hes got money across 4 in different fields and is gaining around 25% a year on his investment.

Google made 35% over the past 12 months why doesn't everyone just invest in more obvious companies like this? Is there something totally obvious i am missing?

It’s all about timing. Getting in on the way up and before a stock gains too much attraction and people start becoming sceptical of further gains. As Warren Buffet says, buy when others are fearful and sell when they are greedy. It’s easy to look back at GOOG, but why didn’t you put your money into it? You’re right that obvious companies tend to have a bigger following, which can make them easier to get in and out of, but they can also be volatile with newsflow being so voluminous and the effects of the economy being quickly factored in. In fact look at GOOG during the recent tech sell-off. It has already given up all its 2014 gains, and some more. I would suggest not getting to caught up in what your fried is doing. He has his system, and you should have yours too. There is no short-cut for good research and reasoning/conviction behind a trade

 

[NVP]

Hi there,

Ive spent the last 2 years going watching a friend of mine make small (for future long term) gains. During this time ive been trying to pick his brain but I dont think hes very knowledgeable as he cant answer certain question for example. We all look for these companies to make gains and hes got money across 4 in different fields and is gaining around 25% a year on his investment.

Google made 35% over the past 12 months why doesn't everyone just invest in more obvious companies like this? Is there something totally obvious i am missing?

everything is certain with hindsight .............step up and play the game a little................its not as easy as it looks

and dont pay anyone any money to teach you ....please

N

 

[MobiusGrey]

 

[gerryg]

Hi there,

Ive spent the last 2 years going watching a friend of mine make small (for future long term) gains. During this time ive been trying to pick his brain but I dont think hes very knowledgeable as he cant answer certain question for example. We all look for these companies to make gains and hes got money across 4 in different fields and is gaining around 25% a year on his investment.

Google made 35% over the past 12 months why doesn't everyone just invest in more obvious companies like this? Is there something totally obvious i am missing?

You don't missing anything. If you have $ 100 K, buy google stocks and wait for dividends (of course, if google works in profit. If not you are one of those million sods who made "charitable investment" ) Other part of shareholders are stock speculators who prefer to play on stocks price volatility and ignore dividends. It's up to you what profit you expect from N amount of investments. Waiting for dividends is low-risk, but at the same time low-profitable strategy. If you want more profit - move runner in " more risk - more profit" direction - start to trade stocks. That's it.

 

[Player13]

Hi jimbob,
Welcome to T2W.

The thing about this game is that it looks so easy, obvious even, until you try it for yourself that is. There's even an industry cliché that neatly sums this up: 'trading is simple, but it ain't easy'. In a nutshell, I don't think you're missing anything necessarily, but I suspect you're confusing simple with easy.

Tim.

so true!