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Thursday, July 7, 2011

Did you know? Warren Buffett invest like a girl

Have you ever heard of something more stupid than that? Well, wait until you read LouAnn Lofto book title: Warren Buffett Invests Like A Girl, And Why You Should Too. Really? Come on! This so call writer is simply looking to make big money on Buffett head, and the wrong way. I think LouAnn Lofto came with this book title just to sell. She came with an incredibly stupid book title just to impress and LouAnn Lofto is running after the cash, I am telling you! Obviously, I am a girl, I am the Dividend Girl right, and I had been investing since 2005. I can tell you that LouAnn Lofto perspective of investment is totally wrong.

This would be like saying that all girls are good at saving money. What a lie! It’s wrong to believe that a woman has a different and better way to invest than man. This is totally stupid and wrong. Investment style has no gender, but style and perspective. Don’t you ever fall into LouAnn Lofto trap! Once again, investment is not a question of gender; it’s more one of a spirit, of knowing what you want, of wanted more for your money, of always wanted more.

I began my investment life slowly in 2005 by investing in GiCs. My very first investment was a 300$ GIC. Back in the time, I was in my young twenties. I never had any problem to save money and this being despite a very modest condition. 2005-2007 was my mutual funds period and from 2008 to present, my stock market period. Things got very great for me following the 2008 stock market. Last year, I got the good idea to fix myself the 100 000$ portfolio goal for my thirty birthday by using, of course the leverage that is expose in My debt section. Borrowing to invest had been so far one of the best decision of my life. Starting to invest in stock shortly before the stock market 2008 crash WAS the best decision ever.

Investment has nothing to do about a “girl way” that is looking to define LouAnn Lofto. It’s about personal motivation; it’s about wanted MORE and thinking BIG.

From my perspective, LouAnn Lofto is just looking to get media attention with her stupid book title. There’s a lot of stupid people out there, and LouAnn Lofto seem to be one of those kind of individuals.


Liquid Independence said...

"If women are such great investors then why use Warren Buffet as an example?" ~Anon

Francis said...

I see her ads very often, but I'm quite sure she's another one to preach as too much did before her the value style investing: buying good companies when they are cheap and keeping them for the long term. We all know about that....she must be new to investing.

That's true. It works. The only thing is you cannot always find bargains.

But also: even a Buffet kind of stock may looses its shine with time: like The Washington Post and at certain points, Coca-Cola. He does not sell them because he still sits on an important (even if falling) unrealized capital gain and receives millions in dividends...but as he himself confessed: some of his holdings are not rational anymore.

A company is like a human being: it grows, becomes bigger and bigger, becomes more stable and mature...then, it declines slowly and finally, it dies, some may continue to exist, but owning their stocks may not be the best place to poor money.

My point is: be a good value, growth, and dividend investor. Because if you stick to just one style, you may miss home runs.AT THE END, CAPITAL GAIN WINS. Even dividend investing follow that logic: even if that company give away a 8% dividend, but that share price is flat and even drops, you are going nowhere. And also, don't fall in love with your stocks...if a stock did well but doesn't do the job now, maybe it's time to take profits and looking around for growth or to park some cash on an international blue chip shareholder friendly with growing fat dividend suistainable with large shares buyback.


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