How to invest in people the way Warren Buffet invests in stocks.
I like investing. I started investing in stocks not long after I landed my first job out of college. Back then I didn’t really know what I was doing. I made mistakes. But I wasn’t afraid. I kept reading, and listening and studying investment strategy. Today I have a solid, repeatable approach. That’s because I stole my strategy from Warren Buffet. Who stole his strategy from Benjamin Graham.
I bought Graham’s book, The Intelligent Investor, because I heard it was the bible on stock investing. I boiled the 600 page book down to this headline:
‘Buy when a stock is undervalued. Sell when it is overvalued.’
This strategy has served me well. I’m always looking to get in on a good company’s bad news. When banks were collapsing because of the mortgage crisis, I bought Huntington, Fifth Third and PNC stock. When there was oil gushing in the Gulf of Mexico I bought BP. When Equifax was hacked, I was into Equifax stock. When there were diseases decimating the US chicken population I shouted, ‘Pass me a drumstick and some shares of Pilgrims Pride and Sanderson Farms!’
Investing in People
I invest in people the same way. When people are hot, have the world by the bizzles and everyone wants to be close to them, I don’t need to be there too. I like to invest in people who have lost their jobs, hit icebergs, or are leaking oil. Those are the ones that really need to be infused with confidence and friendship. It is easy to divest when people hit all-time lows. But that’s when I like to double down.
People always rebound.
Your personal stock always rises again to reflect your true value. Which means that when you pick someone up who feels like they are sitting on the discard pile, the return on your invested time and attention truly appreciates. While you may have known things would get better for that person, they didn’t. Because when you feel like you are swirling around the toilet, it is hard to see past the very near term.
Look for ways to invest in those that need it most. The good people, organizations, and teams that have fallen out of favor. Because the belief, support and confidence you invest in them comes back to you in amazing ways. Oh, and if you have any undervalued stocks to pass my way, please post them in the comments section.
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