Do not listen to what they say the stars of the erotic industry for investment

CNBC go to Adult Video News (AVN) Awards and asked some of the stars of the porn industry, how would invest $ 10,000 now.

While some investment ideas may be attractive given ideas of some of the actors and actresses reflect one of the most common mistakes made in investing: the assumption that good companies make good money and stocks.

Let's look at some of the quotes from CNBC.

Jesse: "Apple- always invent new technologies, everyone wants it, so it will never go down down."

Anikka Albrite: "I'm a big fan of biotechnology, so everything seems to be good for the future and the health of others is profitable."

Tasha Reign: "If I had $ 10K to invest in a company ... I think I'll invest in Uber-, because I use it for everything and everyone in the porn community are obsessed with it"

Each of these three porn stars are off to a good start in that they have a sense of how these companies operate. They are attracted by things like growth and innovation.

However, none of these porn stars does not address the real and current assessment of companies. In other words, they do not consider the possibility that all these growth prospects there are already priced in stocks to a large extent reached certain peaks.

It could be argued that Starbucks makes great coffee and can not. But if it happens to $ 100 per cup, then you will probably realize that it is a bad purchase.

Do not rush in making investment decisions based on what they say these porn stars.

But two good things came out of the interview on CNBC.
Porn star Ron Jeremy, had some pretty good look at the real estate market:

"Real estate. I own several painful was when they all collapsed. There was a lot of economic problems with real estate, but ... do not get off the roller coaster in the middle of the race ... not. Everything is back again . There are also a lot of money from this, and I think now is the best place to invest. Even the entertainment media are not so good "

Jeremy spoke a valuable feature, which most investors lack. He did not sell low.

There are countless studies in the field of behavioral finance, which repeatedly show that investors are willing to buy high during manias and sell low during the panic. It is a strategy for losers.

Ultimately, investment is difficult. And even if we understand investing, it is better to be as disciplined as Ron Jeremy.