My investing story began when I was 18 years old. As a present for my birthday, I obtained money my parents had been saving during my life. Unfortunately, people here in the Czech Republic don’t invest that much, but my parents were different and they gave me the money suggesting I should arrange a meeting with a financial advisor of theirs to help me to decide where to allocate the money. Having the meeting a week later was an exciting moment for me. I felt like I was doing something really accountable for my age where most of my friends would blow the money on hot chicks, games, and drugs. With the help of our family’s financial advisor, I decided to put all of the money into a Managed fund focused mostly on stocks.
It was 5 years later when I was a college student of economics decided to check the balance of the account and see the results. I was shocked, during the time period when SnP almost doubled its price, I had lost about 25 % of money invested. Even as an inexperienced economist I knew I could not do much worse. I quickly withdraw all I could after a quick analysis of whether there had been a chance for my managed fund to recover.
I read a lot about different options for investing, but stock came out as a clear winner for my needs for several reasons:
- I wanted to make a passive income (So no short-term investments which would only take the time away from me)
- I wanted truly to invest, not to speculate (No FOREX or commodities. I wanted to own businesses, that produce goods or services, not gold bricks with no real internal value)
- Bonds felt like horrible options in today's market especially for young people
Knowing I would have my portfolio made only of stocks the challenge ahead of me was deciding which stocks to buy. Sure, I could buy some indexes or Berkshire Hathaway, but stock picking offered me an option to learn a lot while analyzing the market and the enterprises as well as a way to support directly what I believe in. The gaming industry was a perfect fit for my needs. During my childhood, I always had a vision of the world where gaming would be as popular as other real-life sports. It was also an industry I knew more about than I knew about oil or cryptos. Another big advantage is, there are only several huge players, so I was able to actually invest in whole gaming sector easily trying to diversify my already aggressive strategy. It is now little over 2 years I have started and the results in the industry are astonishing and I'm pretty sure more is to come. I like the combination of fun (games) and financial security very much and you will too! :)
In the next posts I would like to explain:
- What are the biggest gaming companies in the world and what games are related to them (Europe and Japan have some too 😊)
- What are the companies who profit from gaming industry too, even if they don’t directly make games (right now I can think of how demand for computers influences stocks of Nvidia or Intel)
- Posts trying to analyze future of gaming industry (eg. How sustainable micro-transaction model is and whether it is going to be standard model of future or something that would eventually die out)
- News from gaming industry
- Easy to understand analyses of documents like annual reports of gaming stocks
- Maybe something enlightening like How can parents explain stock markets and teach their children to invest using simple gaming industry examples
Please tell me what would be the most interesting ideas in your opinions, I am looking forward to your comments 😊