Dec 8, 2009

I Reveal.. The Source..

It had been almost a couple of months since i get myself involved in the world of economics/business/investments, and i'm gonna reveal here, right now, the source of all these craziness..

Remember, in this post, where i mentioned about buying and starting to read the book 'Rich Dad Poor Dad'? Things had pretty much changed since i started reading this book, the way i look at things and the way i study had been different, more changes have yet to come..

In school, as an engineering student, our lecturers usually ask us 'How will you explain this to your BOSS?' or 'If your BOSS asked you to do this..' These statements don't really bother me much earlier, but getting through the book made i realize, why on earth was i so foolish to have taken up this course? (no offense to all the engineering students out there) Lets just assume i've gotten my degree in engineering and had graduated as a qualified professional engineer, what will i do in the future? of course i'll be what i was trained to be -an engineer, yet, after all those hard work to get the degree, i'm still an employee to someone, and will never get the chance to earn a fortune if things stayed in that way..

Like what i had mentioned in the previous post, i'm definitely not those who doesn't care even if i'm broke at the end of every month.. even highly-paid senior engineers have to get broke every end of the year for having to pay their income taxes.. [Another lesson learned from 'RDPD', the medium and poor stays poor for having to pay their taxes and uncontrolled spending due to a rise in salary; meanwhile, the rich stays rich and gets richer by time because they do not have to shred their pockets to pay for income taxes and they are wise enough to let money work for them, not themselves working for money]

One of the way to let money work for you is by investing.. you'll earn a fortune if stock prices goes up and you don't have to pay a single penny for income tax at the end of the year.. how nice.. but this is will only come true provided that you chose the right company to invest in..

Choosing a good company to invest in is crucial, choosing when to invest in that particular company is not less important.. Hence, i have borrowed a few books regarding on ways the World's Greatest Investor chooses his company from the library.. I have to admit that i can't fully understand what were the books talking about, there were some sophisticated terms but i do have a rough idea on how its done and will continue to refer to those books in the future..

Books i read:

(some of the books were pretty old, 'The Warren Buffett Way' was published in 1995, but good knowledge never gets old, right? =] )

Book that i'm currently reading:

One of the best thing about Buffett is that he never bother to keep an eye on the stock market and will stay away from any other speculations about the market.. He'll only check out prices of stocks in the stock market when he has a company to invest in mind..

There are a whole lot more to be learned and i have not even got myself started on economics although i have one of those big economic book sitting on my desk... LOL..

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