Article 02 - PIGS (Poor Investors Get Slaughtered)

We all have heard the famous adage, “Bulls make money, Bears make money, Pigs get slaughtered”. We have also heard about Cash Cows. They generate a steady and significant cash flow over time, typically with minimal ongoing investment. This term is derived from the metaphor of a dairy cow that consistently produces milk after the initial investment in its care and maintenance.

Before slaughtering the pigs, let’s dive into Cash Dogs. (This is a new metaphor I created.)

What could be a Cash Dog?

To me, it could be a product or an asset that secures our investment over time with minimal loss exposure like a house dog that protects the owner and their house from thieves and burglars. So even a Cash Dog seems to be an asset. Similar to investments that secure the portfolio by hedging for inflation or any unforeseen situation. Eg.: Gold or Silver.

Now let’s look at Pigs.

Toxic Investors:
These invest in their child’s education without the child’s interest.
These are the parents investing their life’s savings for their children’s education; with the child having no clue about the subject. Most of the time, the child does not get a job as per their education making the investment futile. I have also seen parents struggling to make ends meet after venturing out for this type of investment and their lives get toxic.

(Not to be confused with parents who invest in their children’s education because the children want to study.)

RIP Investors:
These only look at Returns and invest without understanding risks. They do not even want to know the market risks in the term “investments are subject to market risks” written in a font that requires a magnifying glass. They only focus on returns. They never bother about risk. They either fail or succeed till they fail. Thus, ending their investments with “Returns In Pieces (RIP)”.

Herd Mentality:
These follow the herd. They are the ones who always complain that they have lost money. Be it in the share market, real estate, precious metals, cryptos, etc. These investors invest in products due to social influence either through friends or family or by just hearing the news. Some even borrow money or take a loan to invest.

These are the poorest lots that always get slaughtered.

Let’s wrap it up,

Cash Cows make money,
Cash Dogs hedge money,
Bulls make money (even though they are not cows),
Bears also make money,
To survive, Mosquitoes bite and Bees make honey (refer to my previous article)
But, Pigs always get slaughtered.

What are you? Think about it.

A farm filled with animals and insects. A great idea for my next article: “Old McDonald had a Farm.”

Stay Tuned.