Chapter 7
Loving an Investment or Loving to Make Money
Falling in Love
Loving an investment and loving to profit from investments are totally different things.
A. Is “Love” Forever?
Don’t fall in love with any investment. Of course, I generally encourage you to fall in love with your special “someone,” but I certainly would not advise you to fall in love with any investment.
Tech Crash of 2000–2001
I am sure you recall the tech crash of 2000–2001. I recall the case of Paul, a Canadian architect, age 60 at the time. He was doing very well buying technological stocks in 1998–1999. He was doing so well that he had plans to travel around the world and move to a million-dollar house.
He wanted to make a killing because of the constantly rising prices of tech stocks. He bought technological stocks exclusively, because he had repeatedly made money with these stocks, so much that he fell in love with them. He sold all his other stocks and investments and moved practically all his retirement money into tech stocks, especially into speculative high-risk companies. Then the crash came. His portfolio value went down 80% before he sold out.
Basically he lost most of his retirement money. Now Paul has to work again. Due to his frail health and age, now over 70, he could not find a permanent position. Very sad. The last time I heard from a friend, he was doing part-time work, selling hamburgers ...
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