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Circle of competence
By Rainbow Coin  •  May 29, 2020
"I began to understand how multiple factors drive profits at that company. Price movements showed me that the value of Exxon Mobile didn't have a simple relationship to the price of oil. It also responded to interest rates, the value of the US dollar, and especially economic expectations. I also learned more about the supply, demand, and cartel dynamics affecting the price of oil. I realized my knowledge of the oil business and the oil markets was way too shallow to make a call about oil company stock. I'd underestimated the long-term impact of factors driving oil prices down." Above is an excerpt from a book I have read some time ago (can't recall, but I think is this). When one decides to invest a substantial portion of his money into an asset or company, it should not be...
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By Rainbow Coin
I began exploring the financial world in year 2010, hoping to get out of the rat race and be financially independent. 2010 was the aftermath period of the Lehman crisis when a pretty shaken up market was struggling to recover. On hindsight, that was the perfect time to catch multi-bagger stocks should I be a veteran or at least had some basic knowledge of picking up 'gems'. My learning curve was steep then, as I have absolutely no friends or relative who could shed some light on what's investing about.
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