Tuesday, September 9, 2008

Preventative Investing

Applying productive prevention to investing has two parts:

1. Looking at macroeconomic factors, determining important problem trends and then investing in industries that would address these problems. Examples of this are investing in healthcare for the global aging population, or alternative energy sources for current energy issues

2. Looking at individual companies and see who is preparing themselves best to survive tough conditions, vaccinating themselves against difficulty.

Number 1 can be used for short and long term investing, while number 2 is really only useful in the long term, as time goes on I will explore specific examples of each of these ideas in more detail.

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