Since the existence of the financial market, there are many people who became famous in the first battle, and there are also many people who have made profits for several years in a row, and there are also many people who have experienced many ups and downs, but there are people who can make a lot of money and get out of it all at the same time. But there are very few, and even many investment masters fell into the quagmire after being brilliant, and even passed away in desperation, such as the master Livermore. However, we can still see some investment masters in the market, even unknown ones, who were able to win tens of millions of dollars in the market and retreat unscathed.
The investment guru that Mex Group will introduce today is a very legendary investor. He is both an investment market aficionado and a political super-player who has been dubbed a "presidential adviser," a lone wolf, a speculator, a "park bench politician," and "the man who dumped before the stock market crashed." Waiting for a good name, he is Bernard Baruch.
01 The word "Baruch" means "blessing" in Hebrew. Bernard Baruch was born in Camden Town, South Carolina, USA in 1870. His father was an excellent doctor, and his mother taught piano and vocal music. He was the second of four brothers. In 1889, he entered a Wall Street stock brokerage firm as an apprentice and began to study venture capital with a weekly salary of US$3. After continuous hard work, he was quickly promoted to a partner of the company. He spent all he had to buy a seat on the New York Stock Exchange. Became a millionaire by the age of 30. In the next few years, Baruch was on the verge of bankruptcy several times but made a comeback, but by 1910, he had become one of the few tycoons on Wall Street together with Morgan and others.
02 Create the first miracle in life
In 1897, the young Baruch created the first miracle in his life. In the spring of that year, on Wall Street, the shares of the American Sugar Refining Company began to plummet, and people in a pessimistic mood began to sell frantically. That was largely because a proposal to lower taxes on foreign sugar imports was being debated in the Senate at the time, while a similar legislative process was underway in the House of Representatives. Every move of the Senate always affects the ups and downs of the stock market. But Baruch firmly believed that the Senate could not pass the proposal. He believed that sugar beet growers in the West, like Wall Street, hoped to obtain greater profits through tariff protection. So he invested heavily, using 10 times leverage to buy "American Sugar" with 300 US dollars of his assets at the time, and continued to increase his position. In the end, the sugar tariff rate passed by Congress turned out to be much smaller than expected. Baruch made a profit of US$60,000 from this sugar investment, which is about 20 times the profit in a few months. A dollar back then was equivalent to about $300 today.
03 Become a millionaire at the age of 30
In 1898, Baruch's investment talent once again shocked Wall Street. On July 3, 1898, Baruch, who was spending the weekend with his wife and family in Long Branch, New Jersey, learned from his boss Hausmann that the Spanish fleet had been annihilated by the U.S. Navy in San Diego, and the U.S. military had won the Spanish-American War. decisive victory. Baruch immediately realized that this victory meant that the war was coming to an end, and the financial market in the United States would rebound quickly, and there might even be a strong momentum. The next day is July 4th, National Day. The New York Stock Exchange will be closed for one day as usual, but the London Stock Exchange should be open as usual. At this time, if you buy stocks at a low price in London and sell them at a high price in New York, the profit in the middle will be considerable. Baruch sent a telex to London to buy a large number of stocks. The next day, because he believed that peace would bring good luck, the stocks on the stock exchange began to rise one after another, and Baruch made a lot of money for his boss and himself. At that time, almost every investor competing on Wall Street was a master in a certain field, or a brokerage expert, or a venture capitalist, or a floor trader, or an investment banker, but Baruch was able to In a short period of time, all these roles have been integrated into one, becoming a "all-rounder" for investment. In about three years from 1897 to 1900, Baruch's personal assets rose to $1 million, from a penniless poor boy to an enviable millionaire. In 1916, Baruch's net income had reached 2 million US dollars.
04 Baruch's investment philosophy
As an investor, Baruch's investment experience mainly relies on accurate judgment according to market conditions, strong will and good lobbying skills. Baruch belonged to the kind of person with great talent and boldness, but after he entered the political arena later, he was cautious everywhere. Regarding his position, he adheres to principles, actively participates in activities, and obeys unconditionally when he disagrees with everyone. In his memoirs, he even compared himself to a timid "turtle". U.S. presidents who have worked with Baruch include President Wilson, President Coolidge, President Roosevelt and President Truman. Among them, President Truman's evaluation of Baruch is: "This man thinks that he should manage the entire earth, and even the moon and Saturn."
Baruch's investment philosophy
1. Investors should pay attention to three aspects of the investment object: first, it must have real assets; second, it is best to have a franchise advantage in operation, which can reduce competition and ensure the future of its products or services; Third, and most importantly, is the management ability of the investment object.
2. Investors must think independently. Avoid being emotional, and remove all environmental factors that may lead to irrational behavior. Don't miss a single detail - think for a moment. Never allow what you wish to happen to cloud your judgment.
3. Baruch advocates resolute stop loss. He believes that if investors have the awareness of stop loss, even if they only get it right three or four times out of ten, they will become rich. He urged investors to be prepared to turn around and leave the market at any time. Baruch also pointed out that it is impossible for anyone to fully grasp the investment essentials of all industries. Therefore, the best way to invest is to find the industry that you know and know the most, and then put all your energy into it, and be cautious about "inside information".
4. Don't speculate unless you can make it a full-time job.
5. Learn how to stop losses quickly and cleanly. Don't expect to always get it right. If you make a mistake, stop the loss as soon as possible.
6. Regularly re-examine all investments to see if their developments have changed the investment prospects of these assets.
7. Keep some cash on hand. Never invest all your money.
Add
