Skip to main content

Investment and Physics

 Sir Isaac Newton came up with laws around physics and mathematics, Laws that hold true today (and tomorrow, and tomorrow...). Let's see if the laws have any relevance in the world of investing and money.

The First Law of Motion:

An object at rest remains at rest, and an object in montion remains in motion at a constant speed and in a straight line unless acted on by an unbalanced force.

What????

Let's take the first part: An object at rest remains at rest. I guess that means that if you do nothing, nithing will happen. You have to make a start.

Now let's look at the rest: An object in montion remains in motion at a constant speed and in a straight line unless acted on by an unbalanced force. I guess that means that once you are moving towards you investment goals you will keep moving towards them unless you are affected by an outside influence: Bills, the desire for a holiday, wanting to buy the latest iPhone, etc (you get the idea). It could even be that you made a shitty investment choice, or followed someone else's "good advice" or a hot tip. Even having to pay taxes is a speed bump on that momentum. But, as I said in my book, they (taxes) are all accounted for.

All these things can stop your momentum towards your goals. All these things (and more) are unbalanced forces.

There are allsorts of pressures when it come to money, and most of those revolve around a single thought-command: WE NEED TO SPEND IT RIGHT NOW!

I started with $1000 and my total, as of today, is over $30,000. Now I will remove some of that and pay off my credit card. But most is goind straight back in to the next investments. You see, the credit card debt is an unbalanced force, but it's one that I can balance quikly and get back up to speed quickly.

The oint is, Newton's laws hold true across more than just physics and maths. So now that you know that, are you going to let an unbalanced force cause your plan to come to rest? Because if that happens... read the first part of the Law above again.

Comments

Post a Comment

Popular posts from this blog

A Couple of Updates

 Well, it's Monday morning and the week has started with a bang. First, PFE announced that there was an unexpected problem with their test drill and they have had to abandon that and go to a new test drill site. A delay, but no real issue apart from that. And the market hated that. Good news for those wanting to buy, not so good for existing holders. IMC released their AGM presentation which indicates that there will be some news in December and then a very busy (and hopefully productive) 2025. Sales are good and continuing to get better and better.
Post a Comment
Read more

2025 - an early start

 Ok., so here we go on my Trump-era goal. Just bought MXR (yes, on the ASX). AAR wants to take them over at 7 cents as a scrip payment (paying in AAR shares instead of cash). The current share price is 6.3 cents. So that should be a quick 10% gain. However... this does look like a lowball offer and may yet be increased. MXR has great assets and AAR already owns almost 20% of MXR. So AAR is committed to a deal and that may just attract other attention. It looks like a no-brainer to start 2025. Yes, there is always some risk, but this one looks pretty good. I have done a bit more research and have some exciting thoughts, including one that looks a little like another WGO (which returned handsomely on a takeover). More news coming as I do more reseach.  Another one that looks good for a quick profit is GES, but as I write this, there are no shares at the right price (.05).
Post a Comment
Read more

Out of 2

 I ahd some bills to pay and these 2 got the chop: PFE - such promise, such disappointmen IMC - I always had some ethical problems with this one.  But there it is. Bills paid, and a little left over to find something new with. 
Post a Comment
Read more