Buy Low and Sell High – Lesson From a 17-Year-Old Kid
Buy low and sell high. That is literally all you need to know about investing.
The problem is that we often overcomplicate things. We get too technical and we try to outsmart ourselves…
If we can stay disciplined to just be patient and take a look at the bigger picture, then investing can be quite simple.
As I mentioned last week in regards to commodities, “We want to invest in areas that are cheap. We want to buy low and sell high. Simple.”
But, let’s look at another example of something that is ridiculously simple… something that anyone can do, regardless of your age or how much money you have…
Meet Steven Ortiz.
Source: Jalopnik
At the age of 17, Steven used Craigslist to trade from a used cell phone to a Porsche Boxster.
It took him 14 trades over two years and he never used any money. That’s amazing.
The lesson is simple:
Sell what other people think is valuable. Buy what other people think is not valuable.
In Steven’s case he just made trades – he bartered.
(By the way, if you don’t have any money but want to invest. Craigslist is an excellent resource for hustling. I made a lot of money during college on Craigslist. There is even a specific bartering section for those who want to make transactions without cash.)
Now, if you are holding US dollars, there is an obvious trade right now.
Just look at the dollar strength index:
Source: MarketWatch
Historically speaking, the US dollar is strong right now. There are many places in the market – and throughout the world – that we can take US dollars to buy weak or cheap assets.
I already showed you last week, but I think it’s worth mentioning again. This trade looks so glaringly obvious…
Source: CSinvesting
Could the dollar get stronger and commodities get cheaper? Absolutely.
And even though we can’t time the market perfectly, all we have to do is get close.
With equities (think the S&P 500 with lots of crazy-high valuations) trading at all time highs compared to commodities, I’d say we are damn close.
Big Opportunity Next Week (Exciting Agriculture Deal)
If any of the above makes sense to you (buying underpriced assets for excellent returns for years to come), then you will be very happy with what I am going to share.
