[openbeos] Re: Couple of non-sequiters
- From: "Scott MacMaster" <zqxh@xxxxxxx>
- To: <openbeos@xxxxxxxxxxxxx>
- Date: Thu, 22 Aug 2002 23:24:47 -0400
> > While sticking money into an interest accumulating account will
> > generate
> > money (at best 5%) we can do a lot better if we have someone or a
> > group of
> > people actively invest the money. My whole family is into investing.
> > My
> > father only spends an hour a day investing and studying the market
> > and
> > easily makes 9% a year (except this past year of course). If we
> > spend three
> > to four hours a day investing and studying the market I'm sure we can
> > get
> > close to 15% a year.
> >
> > To whoever ends up investing this money it's very important to
> > diversify
> > your investments. People who diversified the investments did not
> > loss money
> > during the past year (if you don't follow the market, the past year
> > was
> > very, very bad year for the market). Diversifying means investing in
> > these
> > following areas, high cap business, low cap business, bonds, tech
> > stocks,
> > mid cap business, foreign stocks, and 2 other that I can't remember
> > off the
> > top of my head.
> >
> > Morgan Stanley has money managers. They do very well if you get at
> > least
> > three. You can usually get 10% to 15% with them. They would be a
> > good
> > option if OpenBeOS doesn't want to bother with actively investing.
> > Morgan
> > Stanley only charges 1% to manage these money managers. However,
> > money
> > managers cost $100,000 each so this may not be an option for OpenBeOS
> > for a
> > while.
>
> 1) AFAIK the theory that in average people analyzing the market don't
> outperform monkeys picking stocks by random has not been proven wrong
> until now.
>
> 2) The simple truth is, that you buy greater potential for profit with
> a higher risk. You can as well gain 100% in a week via high leverage
> instruments like options or futures, but you can easily lose your
> complete investment and for the latter even more than that. Don't throw
> numbers around when you can't even estimate the risks involved.
I'm not throwing numbers around. These numbers are directly from a
representative from Morgan Stanley. I'm also well aware of risk. I didn't
mention risk because I was not discussing what to invest in. I was
discussing options to what we can do with donated money (investing money vs.
putting money into an interest accumulating account). If you must know, the
risk involved in the options I'm described aren't that risky. In fact, the
risk involved isn't losing money it's more like making 3% instead of 15%.
Scott MacMaster
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