Pure Investment Education Ltd

How many mutual funds do you own? Do these funds own the same stocks? Are you then overdiversified ? How much of the returns of these mutual funds come from a small number of companies? Call me or email www.pureinvestmenteducation.com to start a discussion.

Pure Investment Education Ltd. Tailored education for individual investors

How long can the stock market keep on this run of positive returns? What is propelling the market? There are many, many reasons. Call me or go to my website for more details. www.pureinvestmenteducation.com

Tailored education for individual investors We provide investment education, individual investment advice that serves as a second opinion about investing.

I was watching the "experts" in the markets today on a financial program and some of them stated, "the market will continue to go up over the long-term" others said "the markets will continue to experience downward pressure for a while". How does one digest this? What does it mean for your investments? I can assist with answering these questions, just go to the website and contact me. www.pureinvestmenteducation.com

Education for the individual investor We provide investment education, individual investment advice that serves as a second opinion about investing.

Hey, all-
Another interesting article in the WSJ about Robinhood 4/29. Basically the summation of the article is about how Robinhood froze accounts and their investors lost money because they could not trade. To compound the situation, they are overwhelmed by customer service requests because they added so many new accounts they don't have the human capital to keep up with requests. My note today is not about the market today but more of a business structure observation. If they had say, 100,000 accounts and there were x amount of customer service requests and they added 1,000,000 who missed the forward demand expectations of the service requests. Seems to me like mismanagement and if that is an indicator, I would more than avoid their IPO.

It is amazing to me that people fall for advertising pitches about how good they could have done in the markets, be it gold, silver or stocks. "if you invested in Netflix or Tesla or Gold or Silver in the past x years you would have made thousands of percentage points" That is like saying if you bet heavy in all the Kentucky derby winners over the past decade you would have won a ton of money. Everyone knows the winner of the horse race after its over, don't fall for the fast money pitches.

Interesting article in the WSJ today, Friday 4/23 about Robinhood "investors". It told the story of three inexperienced traders who put a good portion of their savings into the market on margin and lost almost all of the money. They did not know how to invest or trade. I can teach you how to invest but not trade because I don't know how to do that. If you seek a second opinion or just want to know where you are on your long-term investments, please reach out.

I have a few questions about electric vehicles. First, where is the electricity generated ? Second, who is being trained to fix these new cars when you are on a long road trip? Third, where are charging stations going to be located? Fourth, if we are relying on the electric grid to power all these cars, does that not make utilities a prime target for hackers and terrorists ? Fifth, what happens to all the batteries that are used up and cannot be recycled?

You need to learn your guns and stick to them. One great example is we had a client who was a wonderful and very successful trial attorney and knew himself and wanted to invest in municipal bonds because he knew his risk. When the internet was taking off and his colleagues were making tons of paper money in spec stocks he came to us and asked if it was appropriate for him to take a portion of his money and invest in the internet stocks. My questions to him were "Michael, how much time did you spend studying the law? how much time and effort did it take to become a great trial attorney? how would you feel if you lost the $20,000 that you want to invest in stocks? is all the time that you spent you becoming you and in your profession worth the risk of loss?" He concluded he should stick to his municipal guns, in the end he was satisfied as his colleagues lost all their paper money and he was successfully invested in bonds while the market cratered he was safe.

Most people that I have advised consider themselves as risk adverse and when I ask them “why”? the most common response is “because I don’t know what you know”. Just because you don’t know does not mean you cannot learn. The other answer to the question of being risk adverse is “investing is way too complicated” and I can assure you, that if I can figure this out, you can also. It took me almost seven years to figure out that investing is not that complicated and if you do some simple analysis you can take control of your own investments. Think of it this way, if you can get the fundamental tools to invest for yourself, you can avoid paying the fees advisors charge to you them to tell you what their firm tells them to sell to you so the firm can profit. There is a reason that so many Wall Street advisors and management get paid millions of dollars in compensation, they earn fees on you because you have not garnered the knowledge to do this yourself. Call or email for your first free consultation.

Here is a tale of armature investors relying on hype and not having a solid fundamental education. This is from the WSJ in today's edition. IF you would like to get further information from Pure Investment Education, please call or email

Salvador Vergara was so enthusiastic about GameStop Corp. in late January
that he took out a $20,000 personal loan and used it to purchase shares. Then the buzzy
stock plunged nearly 80%.
GameStop’s volatile ride is hitting the portfolios of individual investors like Mr. Vergara
who purchased the stock in a social-media-fueled frenzy. These casual traders say
GameStop was their “YOLO,” or “you only live once,” trade. They bought around its late
January peak, betting it would continue its astronomical climb. While some cashed out
before it crashed, others who hung onto their shares are in the red.
Listen to this article
5 minutes
GME -1.49%
▲
2/16/2021 GameStop Investors Who Bet Big—and Lost Big - WSJ
https://www.wsj.com/articles/gamestop-investors-who-bet-bigand-lost-big-11613385002?mod=itp_trending_now 2/7
Mr. Vergara, a 25-year-old security guard in Virginia, started investing four years ago
after deciding he wanted to retire young. To save money, he drives a 1998 Honda Civic,
eats a lot of rice and lives with his dad. He stashed his savings mostly in diversified index
funds, which are now valued at about $50,000. Then Mr. Vergara, a longtime reader of the
WallStreetBets page on Reddit, saw others posting about buying GameStop shares and
the stock’s colossal rise.
He didn’t want to touch his index-fund investments, so instead he got a personal loan with
an 11.19% interest rate from a credit union and used it to fund most of his GameStop
purchase. He bought shares at $234 each.

GameStop Investors Who Bet Big—and Lost Big GameStop’s volatile ride is hitting the portfolios of individual investors who purchased the stock in a social-media-fueled frenzy.

You all know the story of GME. My issue is that when people who have not had the proper investment education will get hurt. This reminds me of gambling instead of investing, one can gamble with money they can afford to lose. Call or email for a no cost consultation, www.pureinvestmenteducation.com

Education for the individual investor We provide investment education, individual investment advice that serves as a second opinion about investing.

When it comes to a truly professional investment review, why would you trust someone who is just trying to sell you something ? Our company has an unbiased view of your investments and can give you peace of mind to know you are on track. Call or email to start a conversation, the first interaction is free.

www.pureinvestmenteducation.com

Education for the individual investor We provide investment education, individual investment advice that serves as a second opinion about investing.