Ngeth Chou, An Economic Analyst: “Should You Choose Puppy or Calf Investment Strategy?”​


Mr. Ngeth Chou is an EMC senior adviser and an economic analyst.

Price fluctuation is inevitable. Stock and gold traders might be excited when the price goes up, and they may be disappointed when the price slumps. Warren Buffett advises that these types of traders should invest in gambling at Las Vegas. 

The common undertaken investment approach usually based on the behavioral changes of political, economic, and social aspects, commonly known as Behavioral Economics. For instance, in just a night after the broadcast on the positive sign of the COVID-19 vaccine, the price of gold commodities failed drastically 5 percent (from around $2000 to $1900 per troy ounce). 

Instead, the effective approach undertaken by Warren Buffett tends to have a long-term investment in business analysis rather than economic, political, and social analysis. He pins on the long-term profitable business industry like Coca-Cola. Customarily, his such investment method might be not foreseeing as profitable as an investment in financial assets. However, psychologically, people tend to invest more in assets that obtain high returns on investment in a short-term period. On the other hand, they might not accumulate their wealth as same as Warren Buffett. There is the comparison on the outcome that immediate return on investment is like the mother dog gives birth to many small puppies while Warren’s measure is similar to elephant investment which may not give birth as many babies as the dog in a short period, but once they do, baby elephants are far bigger compared to puppies. 

Real estate investment is indistinguishable with stock investment and I never see any billionaire from selling or buying land. Instead, only real estate developers like Li Ka Shing, Songsakdi, and John Jacob Astor could become billionaires. 

Source: Ngeth Chou | By: Kimlong

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