Sunday, May 10, 2009

Stock Market




I've been following the stock market ever since last April (2008). The Dow Jones was around 15000 points. It took a huge leap off the building and three months ago it was around 6000 points. Now it has rebounded to about 8500.

During this time I kept playing the stock market game on Facebook. I had to reset the game about a billion times because each time I thought it hit the bottom, it proved me wrong and kept going down. Finally, at a certain point I just stuck with it and kept playing. I started with 40 million to invest. Now I'm up by roughly 20 million. I'm beating the S&P 500 Index!

The only reason why my performance is so decent is because I put almost all my eggs into one basket. I have 80% of my disposable cash on FSLR. It proved to be a wise decision and the return from that single stock is more than all the other ones combined. Warren Buffett once said, only those who don't know what they are doing use diversification.

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