Financial Idea: Should I Be Buying Gold Or Looking At Emerging Market Stocks?
Yes, if you don’t think what you’re doing currently is risky enough.
Both types of investments are what are known as “niche investments”, along with other examples such as high-yield or “junk” bonds, and they can seriously mess up your portfolio by introducing wide price swings that make it very unpleasant to stay invested for the long term.
Warren Buffett has said, among multitudes of things, that you should invest in something with the idea that you can’t trade back out of it tomorrow or anytime in the next three years. In other words, that you should have the confidence in what you’re getting into that you can, while not ignoring it, be comfortable with holding it for the long term.
Taking that approach is going to keep your investment costs down for one thing, even when you’re paying a commission to trade. It’s also likely to help you keep your stress levels down. If you’re the sort of person who has to read the financial pages or watch the financial TV shows every day, you’ve gotten too close to the picture. Imagine being in an art gallery and standing with your nose two inches away from a painting and pretending to able to objectively evaluate it. That’s roughly the same thing.
Now, if you really like gold and/or emerging market stocks (and you understand what those are), it’s okay to have a little tiny bit of them, relative to your whole portfolio. Some people say as much as 5% of your total can be there. I’m more comfortable with 2%. Remember, they have wide price swings, and you’re very likely to get out of them nearly as quickly as you got in, which limits your chances of doing well and increases your trading costs.
Want to know more? Let’s talk, and create a plan that’s right for you and your family.
Related posts:
- 10 Investing Books Recommended By Warren Buffett
- After the gold rush
- How Can I Educate Myself About The Stock Market?
- Warren Buffett Gives Financial Advice to Girl Scouts at Dairy Queen
- Financial Ideas About Penny Stocks And Why Everyone’s Talking About Them.
April 18th, 2010 at 4:26 am
I have recently been a passionate lover of this website for a while but not truly given nearly anything back, I am hoping to change that in the future with more talk.Thanks for another new inclusion on the web site.
April 20th, 2010 at 3:07 pm
I searched for something completely different, but found your website! And have to say thanks. Nice read. Will come back.
April 25th, 2010 at 12:42 pm
I always enjoy reading intelligent articles by an individual who is definately up to snuff on their chosen subject. I’ll be watching this thread with great interest. Keep up the good work, see you next time
April 26th, 2010 at 1:38 pm
Could I link up to this, from my web page? I’m trying to round up as many bits of information as I can.
April 26th, 2010 at 8:18 pm
Hi,Cheers to the author for giving me some inspiration. Will bookmark this post for referance.
April 30th, 2010 at 7:21 pm
Love this blog. I’ll be bookmarking this one. Thanks!
May 30th, 2010 at 6:10 am
“Don’t do nothing.I have invested in gold coins and silver and it is pretty much tax free money in my pocket .Just hold on to your investment and sell when the price goes up.”
May 31st, 2010 at 4:26 am
Great post, thank you so much for sharing.
June 1st, 2010 at 1:47 am
Hello and congratulations on your post. I found it via Google. Though I couldn’t read the whole of it, maybe I should blame my sloppy Internet connection. It got hanged each time I tried your links. Hope things work in future. Anyways, keep blogging.
June 7th, 2010 at 1:42 pm
Wishing you many future successes.
June 8th, 2010 at 7:54 am
You know this is a extremely good post i havent thought about this for quite a while and you have like sparked me to look into it further and re educate my self in the subject….thanks,hope to see more of your posts soon
June 9th, 2010 at 9:54 am
Good-bye Lost, I am going to never forget you!
June 10th, 2010 at 6:45 pm
Very useful and meaningful information that you have on your website.
June 11th, 2010 at 6:57 pm
This is a nice blog, Going On.
June 13th, 2010 at 5:57 pm
I just want to say that your weblog is good.
June 14th, 2010 at 7:11 am
Thanks for an interesting article. After looking through different websites I finally found something worth reading.
June 15th, 2010 at 9:59 am
nice bolg .nice content ,i found your blog on Fiest online gold ,.i think i wll back soon
June 15th, 2010 at 1:31 pm
you are professional.
June 16th, 2010 at 11:06 pm
Thank You!
June 18th, 2010 at 1:15 pm
I appreciate all the nice comments going as far back as April 18th. Sorry I didn’t begin to reply sooner, but this blog system was just being built.
I hope to continue adding value for all of you who take the time to read these ideas.
June 20th, 2010 at 8:49 am
Nice article, nice blog, I have bookmarked your blog, it is worthy doing this. Thank you.
June 21st, 2010 at 2:15 am
My daughter recommended your post. I’ve bookmarked your site.
June 21st, 2010 at 3:54 pm
I hope you get a lot out of it!
June 21st, 2010 at 3:55 pm
Thanks! I’m glad I could help!
June 21st, 2010 at 3:57 pm
Well, thank you! That’s high praise indeed. Please let me know if there is something specific you’d like me to address!
June 21st, 2010 at 3:58 pm
Thank you!!!
June 26th, 2010 at 12:16 pm
Hey, I found your site while looking on Bing for penny stocks. Read through alot of your stuff and i must say, i bookmarked your site and plan on coming back. Keep up the awesome work!
June 28th, 2010 at 2:36 pm
Hey blogger, I was just browsing the net looking for some information and came accross your blog. I was impressed by the information that you have on this post. It just shows how well you understand the article. I bookmarked this page and am going to come back for more. You, blogger, ROCK!!!
June 29th, 2010 at 1:05 am
This is some really good stuff. I’m overwhelmed by the quality of your site
June 29th, 2010 at 5:42 am
Awesome stuff. I’ve gotta express that it has been very interesting watching investing advice sway in the last few years. What do you think about it?
June 30th, 2010 at 8:49 am
Howdy, your site is on air in the radio! Good job mate. Your posts are truly great and bookmarked. Regards
June 30th, 2010 at 9:27 pm
Hi, A fantastic blog, I have to admit this is really well thought out, this forum definitely needs bloggers like you. Filling the place with some good tips and information, I did follow A couple of your posts, they been relevant and important points were elaborated. I must say we should always be ready to post in our best knowledge to aid people. Really love your posting.
July 1st, 2010 at 8:28 am
You wouldn¡¯t believe it but I¡¯ve wasted all day digging for some articles about this. You¡¯re a lifesaver, it was an excellent read and has helped me out to no end. Cheers,
July 2nd, 2010 at 1:51 am
I’m not sure that I understand this. I might actually need some direction.
July 3rd, 2010 at 5:22 am
hi, thank for this latest information. Therefore, I would like to ask for your permission to add some of this information in my blog. Of course, I will provide a link to your blog, as a source of my quoted information.
July 8th, 2010 at 1:24 pm
With a link, that’s okay. Thanks!
July 8th, 2010 at 1:43 pm
Investing advice always sways, but in my opinion it shouldn’t. Good advice is always good advice. Focusing on different things at different times is often just a symptom of not having confidence in what you’ve picked in the first place!
July 17th, 2010 at 1:33 pm
Awesome Blog here on the finance sector. I love looking at blogs that have to do with business and finance, so thank you for keeping us up to date with your blog! Ill be coming back!
July 20th, 2010 at 5:01 am
hey there I just wanted to comment your blog and say that I really enjoyed reading your blog post here. It was very informative and I also digg the way you write! Keep it up and I’ll be back to read more soon mate
July 29th, 2010 at 2:58 am
I am definitely bookmarking this web site and sharing it with my acquaintances. You will be getting plenty of visitors to your website from me!
July 29th, 2010 at 3:30 pm
You’re welcome!
August 13th, 2010 at 2:10 pm
Bookmarked your web site. Thank you for sharing. Definitely worth the time away from my coursework.
August 28th, 2010 at 10:10 pm
Well, the article is really the sweetest on this notable topic. I harmonise with your conclusions and will thirstily appear forward to your next updates. Saying thanks will not just be sufficient, for that extraordinary lucidity inside your writing. I will directly grab your rss feed to stay abreast of any updates. Solid function and much success inside your business efforts!