Blue Chip Investments
A blue chip is still a gambling chip.
Blue chips are just not
cheap gambling chips.
A salesman, your broker,
likes blue chip investments.
They sound secure.
They give him a transaction
He probably gets residual
And because "everyone"
says they are good blue chip investments, it is real
hard to sue him for bad advice - when you lose most
of your money.
Here is a powerful rule
* Wealth is made
through concentration, preserved through diversification.
Salesmen do it backwards.
They want to lock up those
lovely dollars of the rich, so they recommend one or
two "blue chip" investments; they have also
locked up their residuals. For the poor they just churn
them for commissions, recommending one thing, then recommending
selling it and buying another; rinse and repeat, each
transaction makes them richer and you poorer.
They may not do it directly
- TV analysts are always suggesting something new. The
analysts they interview on TV work for the brokerage
companies - how convenient.
A powerful rule of speculation:
* Never buy what
someone is trying to sell you.
If someone calls you with a great investment advice,
hang up. They go to the trouble of calling because there
is a reward for them; your money.
Seek out and understand
where you want to put your money and time. Then seek
out and discover who will give you the best service
at the best price.
You want to be in control.
Speculation involves managing risk through knowledge
and investigation. You are the only one that will
do it right for you - play your own blue chips.
No one cares more about your money
and time than you
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