Quote:
Originally Posted by Stephen  Hi yoopersmith
I think 'diving right in' in some areas of your life are good, but believe me I have seen it a million times, diving right in buying shares without proper research is a sure way to lose money.
You only need to posit the question- Why did I buy that share?- To understand how little many people know what they have done with their money.
Do they understand the cash position of the company? Its cash flow? Its order book? Its industry outlook? Its board or owners? Its market share? Its price eranings ratio? Have you looked over the company accounts etc etc
If you havent done all of these and more then throwing a dart at the stcok listings in the Financial Times is about as good a strategy as any! |
Stephen,
Oh I agree with you too, but you have to admire the willingness to dive in. He will mostly likely lose some money, but hey...its just money, he can make more right? :-)
That's why I pointed him towards
Fool.com: Investing, Stock Research, and Personal Finance. It's a great free site to learn everything you need to know about investing. But this kid was ready for some action and had money to burn.
Look at it this way, he could have taken the money and "blown it" in Vegas. At least he WANTS to learn something, which means his heart is in the right place.
I was very timid when I started investing, and I bet you were too, but this guy is not.
BTW...I subscribe to newsletters and buy stocks based on reasearch (mine and others) and recommendations, but I don't know about half of the stuff you were talking about...but that's my choice. I have a core of index funds and dabble a little in riskier stocks, but always based on good companies that have good management and the potential for growth.
My bottom line keeps growing and I stay ahead of the S&P 500...that's all I want from my money.