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The 5 Laws of Gold: Forth Law of Gold

Fourth Law of Gold:

Gold slipith away from the man who invests it in business or purposes with which he is not familiar or which are not approved by those skilled in its keep.

What does it mean?

Lets take  a look at Warren Buffett know as the Oracle of Omaha. What is his investment strategy? Purchase cash flowing companies and stocks that pay dividends. Buffett does not speculate on investment, he did not invest in the tech bubble. They where sound investment that made him now the second richest man in America.

Look at Enron, MCI, Lehman Brothers, or Bernie Madoff all are not around anymore. They were not skilled in its keep. They lied and cheated investors out of money All the companies are not around anymore and only a few are in jail for there fraud.

When you invest your money be sure you are familiar with how it is being invested. If you are not on top of your investment which we are thought now a days. To turn it over to Wall Street and check back when you retire not knowing how the money is invested.

If your Brother-in-law may ask you to invest your money in a bakery but does he know how to run a bakery? If neither of you do it sounds like a bad investment. When it fails it should not be a surprise.

When you invest you money be sure that person is skilled in its keep and know how to make more of it.

 

 

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