Tuesday, August 10, 2010

What is 5C in investment?

Many people do talking about 5C to measure their wealth in their life.
As we know the 5C stands for: Cash, Car, Credit Card, Condonimium & Country Club

But actually in investment, it also has 5C.
What is that? For my personal point of view, it makes up of:
  1. Capital  (you need more capital to create more capital)
  2. Character (you must have a good character, so you will not use illegal method to earn money)
  3. Contrarian (you must always be contrarian, as Warren Buffett said "Be fearful when others are greedy, and be greedy when others are fearful")
  4. Calm (you must stay calm especially when the market is panic or over excited, have a good calm mind will help you to get better picture when you analysis something)
  5. Comfortable (you only invest your money in your comfortable level)

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.