by Brian Hunt, Casey Research:
In today’s essay, you’ll learn three strategies for growing and protecting your money no matter what governments and financial markets throw at you.
This essay is part of the “field guide” we send to every new reader of our flagship research service, The Casey Report.
Principle #1: Our money has a passport and no allegiance to a single country or asset class. We’ll go anywhere and buy anything that presents a great opportunity.
If you owned a retail clothing business, would you sell only blue dresses? Probably not. If your goal was profit, you’d probably offer a much broader product line.
If you owned a magazine business, would you publish only magazines about dogs? If your goal was profit, you’d probably offer a much broader product line.
These are obvious questions, to the point of being silly. Yet, many investors make the same mistake as the retail storeowner who sells only blue dresses. They will invest only in their home country. And they will buy only conventional stocks and bonds. It’s a huge mistake that places huge limits on their ability to make great investments.
It’s a big world out there. There are dozens of countries you can invest in. There are investment classes beyond conventional stocks and bonds.
We’ll consider an investment in all of them…as long as the potential reward far outweighs the potential risk.
Principle #2: Develop an obsession with the price you pay for any investment.
Lots of folks will spend hours researching a consumer item like a car or television. They’ll carefully consider the pros and cons of their potential choices. They’ll comparison shop and make an effort to get a great bargain.
These same folks will spend less than 10 minutes making important investment decisions…and give no consideration to buying assets at bargain prices.
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