Let’s imagine Mr. A has 1500. He has no job and he wants to support his family independently on a consistent basis with the help of stock market. How can VALUE INVESTING help?
Dave Drake: 1500 what?If 1500 US dollars, then I cannot think of anywhere in the US where a family can be independently supported, including a family of 1.
Vikas Garg: Yes 1500 USDHence the question
Daniel Tan: if you have only 1500 and without a job . your inmediate question is how to survive long enough till you find a job to sustain you and your family . first of all your capital is not enough , secondly , you cannot force market to give u good return and money. only a long period of 5-10 yrs do stocks give the average return . on the short run nobody can predict the volatile nature of stocks
Vikas Garg: No help possible from the stock market do you mean?
Ajay Shrestha: family is too much to ask with so little Family is an urgent business. You can’t rush and do well here in market.. Please look for something else!
Dan Naumov: 1) Use the 1500 USD for food and shelter while looking for a steady job that would provide you with steady income source (part of which you would then invest in the stock market.2) Use the 1500 USD to start a business, which (hopefully) will eventually provide you with extra income you could use to invest in the stock market.
Vikas Garg: Thanks. What is the threshold limit of capital required.
Stephan Heuler: You need to be able to live without the money invested in the stock market for at least a year. Longer would be better…..
Dan Naumov: There is no threshold. You could be investing 10$ a month or 50,000$, though obviously commissions on transaction are going to be too high if you buy in very tiny amounts (spending 10$ buying a stock when 5$, or HALF of it goes to commission is a bit silly).
Vikas Garg: Thanks Matthew Waterman and all others for your interest and replies to question.
Leon Woo: You can buy the lottery, $1500 to buy all possible no., you might win something more than $3000
Patrick Leduc: Partner with 100 or preferably 1000 other people with 1500$. Pick the most disciplined value investor to manage the portfolio. Live on the streets patiently while the income grows.
Leon Woo: Build your own pyramid scheme by asking others for investing $1500 to you and will receive $50 every month… continue and live the life you dream until the others found out…
Mike Edwards: Value investing cannot help in this situation. The idea of value investing is that you are investing consistently and over a period of time into specific companies with a low share value / high book value, compounding dividends and capital gains along the way. Value investing is getting rich on the long bets not the short ones. The person should take the 1500 and spend it on getting a job creating an income stream and investing in a portfolio that follows the value investing model.
Vikas Garg: Does that mean Value Investing is only for those who are already rich?
Mike Edwards: Of course not. You can invest small or large amounts. You just have to build an income stream first. Value investing is the opposite of a get rich quick scheme. Its getting rich slow but it works!
Boo Jiun Ng: What Warren did to survive …. is to teach value investing at night to cover his expenses. Or you can choose to be like Walter Schloss….be very frugal.
Evan Bleker: Build a decent-size mud hut in your chosen African backwater and gather some sticks for fencing. Go around your village and see if anybody is pressured into selling their goats. You should be able to buy a large number of goats with $1,500 at less than market price if the person is forced to sell.
Tim Melvin: I’m shocked anyone even bothered to answer this ridiculous question
Vikas Garg: Thanks.
Patrick Leduc: Try again.
Tim Melvin: I won’t try again. Anyone with 1500 dollars looking to support a family trading stocks needs to be discouraged from thinking about the markets at all. They have much bigger problems tondealnwith and need to disengage from fantasy land thinking. You need a job not a stock market scheme
Patrick Leduc: Thanks for trying again!
Joshua Kim: Smart investing doesn’t mean turning 1500 into millions overnight bruh. It’s about not making so many mistakes and slowly growing your portfolio. Hope this helps
Saurabh Dixit: Mr. A should take a job with any stock broker. This will satisfy his urge to run family through stock market. Stock Markets are risky, so you might lose 1500 too. Mr. A should understand following :1. Mr. Market don’t work based on one person’s emotion. He is not sensitive enough to feel your physiological needs. Mr. A might be dying of hunger , disease etc. , but Mr. Market won’t give a damn about it. 2. Mr. A might be very intelligent person in terms of financial knowledge, but Mr. A will never be able to predict Mr. Market in short term. Thus it is highly advisable, that Mr. A should accumulate minimum contingency amount, which give financial security to Mr. A and family.Some quotes :1. The Market Can Remain Irrational Longer than You Can Remain Solvent. – John Maynard Keynes2. Live within your income and save so that you can invest. Learn what you need to learn. – Charlie Munger 3. Derivatives : It’s like the slaughter of the innocents. It makes the people who run Las Vegas seem like good people.
Vikas Garg: Thanks for the detailed and precise reply.
Steven X. Chen: No any kind of investing will help