This past year I was interviewed by several college students who were interested in my profession. Specifically, they wanted to know: how I discovered companies, what books/magazines/newspapers I read, why (and when) a CEO or CFO will talk to me and what types of financial analyses I perform. It was an interesting and fun exercise for me, to say the least! (This sudden attention from those students prompted me to establish Roth IRAs for my OWN college kids as a tool to get them interested in some of our companies.)
Here is some wisdom that I shared with them (Feel free to pass it on):
1. Investing is not for the wealthy – it’s for everybody! Be curious– read everything (Popular Science, Popular Mechanics, Scientific American, Men’s Health, WSJ, Barrons, The Economist….)
2. Never spend your gas money – once you have disposable dollars (money that is not required to live), open a low expense, on-line trading account. Wait until you have enough money to buy 2 or 3 stocks, so that you can diversify. There is nothing worse than buying a single stock that performs poorly. This can turn someone away from the market for a long period of time.
3. Never get too excited or fall in love with a company. This can blind you to the cons because nothing is perfect. Liking a certain “brand” DOES NOT necessarily translate into a good investment (due to timing or financials). Try to take all emotion out of investing to clearly see if the company producing your “brand” makes investing sense.
4. The most important thing is to rely on yourself and do not invest in something because your buddy Jim does unless he can spell out, specifically, why he put his money there. If he’s got you enthused – do your OWN research and then draw your OWN conclusions.
5. Once you make a commitment to spend your hard earned dollars (or that birthday $$ from Grandma), keep an eye on the company, its news, the competition, etc. Don’t fall asleep!
6. Get started as soon as you can and try to save a minimum of 10% of your income. Never put it (the 10%) into the checking account, else you will spend it, not invest it.
Goldberg Capital Management is an investment adviser registered with the U.S. Securities & Exchange Commission. This Blog and its contents are for informational and educational purposes only. You alone will need to evaluate the merits and risks associated with the use of the information provided herein. Although this Blog may provide information relating to approaches to investing or types of securities and other investments you might wish to buy or sell, no information provided in this Blog is intended or should be construed as an investment recommendation or endorsement from Goldberg Capital Management. Please remember that past performance is no guarantee of future results.