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pedrotn · 11-07-2006, 05:33 PM

I mentioned in another thread that I was an RIA (register investment advisor) and gave some advise over there. But I thought I would throw my opinion in here as well.

When investing with small amounts of money you really are much better off using a no load mutual fund that is highly rated, with a proven track record, and low expense ratio. Remember on a 2k investment a 20% (an extremely good return in these times) return over the course of a year leaves you with $2,400.00.

So before you put all that work and effort into researching stocks and trading them, realize what you are getting into. With a good mutual fund you can buy it and track it with much less worry and hastle. Also it gives you the diversification that you can't achieve by investing in individual companies when you have limited funds.

Now on the topic of value investing in general. It is a good strategy when done at the right time. It is important for an investor to be flexible. If you were a value investor during the beginnings of the internet bubble you were getting creamed by growth investors. If you are going to actively invest in individual stocks it is important to watch the market religiously. There are times to be a growth investor and times to be a value investor. What makes a true investor is knowing when each of those times are.

Peter

11-07-2006, 05:33 PM	#11 (permalink)
pedrotn Junior Member Join Date: Nov 2006 Posts: 16	Investing I mentioned in another thread that I was an RIA (register investment advisor) and gave some advise over there. But I thought I would throw my opinion in here as well. When investing with small amounts of money you really are much better off using a no load mutual fund that is highly rated, with a proven track record, and low expense ratio. Remember on a 2k investment a 20% (an extremely good return in these times) return over the course of a year leaves you with $2,400.00. So before you put all that work and effort into researching stocks and trading them, realize what you are getting into. With a good mutual fund you can buy it and track it with much less worry and hastle. Also it gives you the diversification that you can't achieve by investing in individual companies when you have limited funds. Now on the topic of value investing in general. It is a good strategy when done at the right time. It is important for an investor to be flexible. If you were a value investor during the beginnings of the internet bubble you were getting creamed by growth investors. If you are going to actively invest in individual stocks it is important to watch the market religiously. There are times to be a growth investor and times to be a value investor. What makes a true investor is knowing when each of those times are. Peter