The Holy Grail of the investor is the so-called “safe investment.” This is the hidden gem that keeps the emotions of an investor consistently positive while maintaining a consistent rate of return. Oh yes – this investment must also require absolutely no research into its underlying company.
Even the best investors in the world are still looking for this kind of investment. The only people who seem to get close are professionals like Warren Buffett and Peter Lynch, and they spend all day researching the companies they choose. As a matter of fact, they have other full-time employees researching those companies as well.
Any investor who is looking for a safe investment should simply hold money in a savings account. There is a downside to this kind of investment – it does not outpace inflation. Anything with a potential for profit also brings with it some amount of risk. Here are just a few of the “safe investments” of today and how they really weren’t all that safe before they became famous and overwhelmingly profitable.
• Amazon, which recently earned the title of “world’s biggest retailer,” spent 10 years losing profits. Around 2010, story after story listed it as an eventual failure and wondered why people kept pouring money into it. Today, Amazon is considered one of the safest investments you can make.
• Facebook was considered a no-brainer when it had its IPO a few years ago. People who thought they could only benefit from it bought heavy during the first day of public trading. In the first week after that day, Facebook lost almost 50% of its value. Although it has more than made up for that now, the people who thought that it was safe to get in quickly suffered a huge loss.
• Walmart was considered one of the safest investments of the past century – a giant that could never be taken down. Many people based their entire retirement portfolios on Walmart stock. However, the advent of digital retailing has caused Walmart to look a bit shaky. People who invested too much in the company are now losing money.
When you look at the performance of the world’s biggest and most successful companies, you cannot always classify it as safe. Ergo, bitcoin will probably never be a completely safe investment, either. The real question that you should be asking is if bitcoin is a good investment. Good investments have a totally different feature set from safe investments, and many of those features depend on your active participation in the market.
When Ted Bauman was growing up, he had a different experience from other children. He grew up in Washington D.C. but later relocated to South Africa. He moved there because he preferred studying and living in this nation. While in South Africa, Ted joined University of Cape Town and pursued Economics and History. He continued living in this country for the next twenty five years. He worked for organizations that were non-profit as a fund manager.
As Ted worked during these years, he developed interest in people living in slums. Ted helped not only those in South Africa but also others in various countries. He chose housing because it got his attention. Additionally, Ted Bauman researched about issues of urban planning.
Eventually in 2008, Jason went back home to USA. The first place Ted got employed was International Housing Programs. His work entailed humanity targeting the international level. After a while, he determined his path and decided to concentrate on research and writing. This meant that he was going to give up on all executive jobs.
Today, Bauman works for Banyan Hill Publishing. All his work is about helping people and educating them. Some basic information in finance and economics is important to everyone but people do not know. Ted has played a role in ensuring people stay informed.
Recently, Ted took time to discuss about the bitcoin. Cryptocurrencies were introduced in the digital world with not much education about them. People are more interested in talking about their benefits. As a result people have become euphoric about the bitcoin. Without really understanding all the details, people want to invest and reap the big harvest. Read more on talkmarkets.com for more info.
While it may have good trading days and big returns, investors need to know the downside. Ted mentions one of the problems being very slow transactions. A bitcoin will take long before one transaction is done. Comparing it to a visa card, the technology behind the bitcoin needs to improve. In particular, one second has only 6.5 transactions of the bitcoin while 24,000 transactions of the Visa card can happen in the same second.
The bitcoin may have a lot of relevance now but if the technology does not improve, the currency will lack importance in the future. If one transaction takes too long, people will eventually realize debits and credit cards are more convenient. The instability issue of the currency also needs to be addressed. It will affect the future if no one attends to it. Know more:http://sovereignsociety.com/meet-the-experts/ted-bauman/
Its supporters are loath to hear the word, but an increasing number of economic analysts are tracking what is known as the Bitcoin Bubble. The idea went viral last month when Convoy Investments formulated a chart tracking the relative worth of various economic bubbles in human history, stretching back hundreds of years, and marked out the largest and, frequently, most destructive. One month later and Bitcoin’s value has continued to increase, and Convoy has released an updated chart depicting the relative positions again.
Bitcoin is now worth 64 times what it was three years ago, officially passing “Tulip Mania” of the 17th century. Howard Wang and Robert Wu, who are the principals of Convoy, highlighted that Bitcoin has near doubled since the chart made last month. Strikingly, it has grown at five times the rate of the infamous South Seas bubble of the 18th century, a crash so enormous the government of the United Kingdom still pays debt on the catastrophe.
There are other words of warning, things like Bitcoin Futures and Derivatives have popped up recently, warning signs for most long-term investors.
There is some wiggleroom. Mike Novogratz, an expert pioneer in crypto-currencies, has stated he believes Bitcoin to easily reach $40,000 before it finally bursts. That’s still a fair amount to grow from its current position just under $20,000, and enough time for the squeamish to save their skins. All that remains hidden is how far the crash will fall.