Build Wealth Thru Comfort Zone Investing
Ted Allrich, founder of The Online Investor and author of Comfort Zone Investing: Build Wealth And Sleep Well At Night, has ample advice to share investors especially those who are in the process of familiarizing the trade.
Relating his early ventures, Allrich said, “First, I got greedy. As they say on the Street, bulls and bears make money, pigs get slaughtered. I over-leveraged my position in HEPH because I got carried away with the science. I thought the stock was a sure winner. With all the indications coming from Washington that the company qualified for a contract, it just seemed impossible to lose. So I put way too much money on one stock, thinking this was a sure thing. But it wasn’t. Without a contract, the company had no other revenues.”
After learning about the fundamentals of investing, Warren Buffett once said, “Prior to that I was investing with my glands instead of my head.” Buffett, the top 2 billionaire around the globe, next to Bill Gates, is one of Allrich’s inspirations when it comes to investments and online stock trading.
Alrich added, “I let my glands get in the way of my brains. Never a good move. Cold and calculating always wins in the stock market over exuberant and stupid. I was betting, not investing. Most of all, I got out of my comfort zone. I overweighed one stock. I created anxiety that wasn’t necessary. If I had bought less HEPH, I would have lost less and been able to stay well within my comfort zone. In the long run, adding stress to your life by betting on one thing isn’t worth it. If you lose, you stagger from the experience. If you win, it’s nice, but it doesn’t compensate for the stress when you lose. Somehow, the losses always seem to hit deeper than the good feelings winning engenders.”
