Investment: Simple but Not Easy

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Investment
Investment is simple, but it is never easy owing to the vast paradox surrounding the procedures to be successful in the same. Most thoughts and move in investments are usually the wrong move, which is why most people fail in investment. The process of building a successful money-making deal is never based on popular opinions. Never follow the herd; the money-making potential is something many never understand or underestimate. The adage of the majority being right is the first rule a successful investor or anyone who wishes to be a successful investor must throw away. If the masses have shown interest in an investment idea, the prices on the same idea have shot up to the level that it is no longer profitable to invest (Marks 1). Popular opinions on an idea bring increased demand which makes the asset overvalued. The rule is to buy when the prices are low, which often happens when most people have not started seeing merit in the idea—talk of the early bird catching the worm.
A lot has changed in investing; previously, leverage was unknown, and so was private equity. Investors' limited options led to the mode return aspirations that characterized the previous investment regime. New investment aspects were later invested, for example, growth investing, investment boutiques, investment personalities, modern portfolio theory, leveraged buyout, etc. The changes have made many people consider investing in stocks. The consequence of the increased desirability to invest in stocks has given birth to the "How to" books that sell their view to investors. The validity and factuality of the books are a matter of debate. I feel the books are unnecessary because they often speak of cliché moves that never materialize to make profitable investments. Take, for example, the books on how to make it big in forex; the information in the books is generic and spells what is already known to the masses.
The aspect of a "good idea" is a fallacy; everything revolves around price. As a good investor, you must enjoy being the lone ranger and shun the warmth of the crowd (Marks 2). Looking at stocks, most investors buy stocks based on the current book value, which makes them pay higher prices. When building a portfolio, most investors will consider the best companies in America because that is what is desirable. Companies like Xerox, Avon, IBM, Hewlett Packard, Etc. The so-called big companies sometimes stall in growth, and investors lose their mo...