Comments on: What is the best way for a newcomer to get started in investing in stocks? http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/ How to make 7 million in 7 years ... Sat, 11 Feb 2012 22:32:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Best Ways to Begin Stock Investing | Money Hacks http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-4581 Best Ways to Begin Stock Investing | Money Hacks Mon, 08 Feb 2010 20:28:15 +0000 http://7million7years.wordpress.com/?p=122#comment-4581 [...] in 7 Years talked about how a newcomer to stock investing should get started in this post — What is the best way for a newcomer to get started in investing in stocks? In the post, he suggests to use the 2 methods that Warren Buffett uses: Index funds or [...] [...] in 7 Years talked about how a newcomer to stock investing should get started in this post — What is the best way for a newcomer to get started in investing in stocks? In the post, he suggests to use the 2 methods that Warren Buffett uses: Index funds or [...]

]]> By: AJC http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-974 AJC Thu, 08 May 2008 19:49:35 +0000 http://7million7years.wordpress.com/?p=122#comment-974 @ Andrew - sounds like you got the right ingredients, with or without my help ... good luck! @ Andrew – sounds like you got the right ingredients, with or without my help … good luck!

]]> By: Andrew http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-973 Andrew Thu, 08 May 2008 17:05:05 +0000 http://7million7years.wordpress.com/?p=122#comment-973 Yes, I applied a few days ago. I have internet startup and trading/investing experience so I am currently mapping out a couple of web ideas that cater to that clientèle. Yes, I applied a few days ago. I have internet startup and trading/investing experience so I am currently mapping out a couple of web ideas that cater to that clientèle.

]]> By: AJC http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-972 AJC Thu, 08 May 2008 14:43:46 +0000 http://7million7years.wordpress.com/?p=122#comment-972 @ Andrew - Yes ... trading is a BUSINESS - nothing wrong with that, provided that you are prepared to treat it as such. I presume that you have a business of some sort in mind? Have you applied to participate in my 'grand experiment' yet? You can apply at 7m7y.com @ Andrew – Yes … trading is a BUSINESS – nothing wrong with that, provided that you are prepared to treat it as such. I presume that you have a business of some sort in mind? Have you applied to participate in my ‘grand experiment’ yet? You can apply at 7m7y.com

]]> By: Andrew http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-971 Andrew Thu, 08 May 2008 14:38:16 +0000 http://7million7years.wordpress.com/?p=122#comment-971 Exactly, trading and investing are very distinct and serve different purposes. It is a shame that so many people confuse them with each other. On a side note I would be really interested to read more posts about the process of starting and growing your business. Exactly, trading and investing are very distinct and serve different purposes. It is a shame that so many people confuse them with each other.

On a side note I would be really interested to read more posts about the process of starting and growing your business.

]]> By: AJC http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-970 AJC Thu, 08 May 2008 05:11:56 +0000 http://7million7years.wordpress.com/?p=122#comment-970 @ Stolid - Warren Buffett says that the smaller investor can make a lot more money than him ... for example, we can buy Micro-caps - he can't (too small for him to bother) ... I absolutely agree with your comments about the 'numbers' just not being enough to base a decision on. @ Stolid – Warren Buffett says that the smaller investor can make a lot more money than him … for example, we can buy Micro-caps – he can’t (too small for him to bother) … I absolutely agree with your comments about the ‘numbers’ just not being enough to base a decision on.

]]> By: AJC http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-969 AJC Thu, 08 May 2008 05:08:14 +0000 http://7million7years.wordpress.com/?p=122#comment-969 @ Andrew - you might be surprised to know that I actually AGREE with you ... just don't call it INVESTING ... if you trade, you are in the BUSINESS of buying/selling stock for a profit (this is a Making Money 201 activity). Just be sure to INVEST the profits so that you have something to retire on ... @ Andrew – you might be surprised to know that I actually AGREE with you … just don’t call it INVESTING … if you trade, you are in the BUSINESS of buying/selling stock for a profit (this is a Making Money 201 activity). Just be sure to INVEST the profits so that you have something to retire on …

]]> By: Stolid http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-968 Stolid Thu, 08 May 2008 04:33:14 +0000 http://7million7years.wordpress.com/?p=122#comment-968 In my view it's a research question. Have the time/desire to research the stock in depth, preferably going to their office in person and reading the 'books' yourself? Then you can reasonably evaluate the stock. Don't have the time/desire? Go with the index funds. A lot of people miss that Buffett, from day one, researched everything he bought. Too many people think you can figure out a good stock from "crunching the numbers" - as both a programmer and economist I can say that it's not hard to 'push' your book numbers in a way to make it look amazing by some technical measure or another. Technicals are used to get a starting point, not to pick the winners. My strategy is: a.) Index funds (or ultra-low-cost-buy/hold funds) for my 'real' retirement accounts (IRA, 401(k)) and to 'save up' for a more researched pick. b.) When my regular brokerage starts getting big enough to justify paying a trade fee start to do some research. I'll also add that certain markets are more inefficient than others and harder to index, for example micro-cap stocks. Thus some good, solid active funds are in the area if you spend the time researching the funds (I'm fond of Royce, personally) that can be invested in. In my view it’s a research question.
Have the time/desire to research the stock in depth, preferably going to their office in person and reading the ‘books’ yourself? Then you can reasonably evaluate the stock.
Don’t have the time/desire? Go with the index funds.

A lot of people miss that Buffett, from day one, researched everything he bought. Too many people think you can figure out a good stock from “crunching the numbers” – as both a programmer and economist I can say that it’s not hard to ‘push’ your book numbers in a way to make it look amazing by some technical measure or another. Technicals are used to get a starting point, not to pick the winners.

My strategy is:
a.) Index funds (or ultra-low-cost-buy/hold funds) for my ‘real’ retirement accounts (IRA, 401(k)) and to ‘save up’ for a more researched pick.

b.) When my regular brokerage starts getting big enough to justify paying a trade fee start to do some research.

I’ll also add that certain markets are more inefficient than others and harder to index, for example micro-cap stocks. Thus some good, solid active funds are in the area if you spend the time researching the funds (I’m fond of Royce, personally) that can be invested in.

]]> By: Andrew http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-967 Andrew Thu, 08 May 2008 00:56:06 +0000 http://7million7years.wordpress.com/?p=122#comment-967 I feel like trading gets a lot of bad press on many PF blogs, even though it doesn't have the same "sense of security" as long term investing it can still be tremendously profitable for many people. Just like any extremely competitive endeavor there are only a limited number of people who are consistently successful long term. But then again how many kids get into Harvard and how many players make it to the NFL. Point being, trading is not something you can just do on the side and expect to make tons of money but just because few succeed at doing it doesn't mean it isn't possible. I feel like trading gets a lot of bad press on many PF blogs, even though it doesn’t have the same “sense of security” as long term investing it can still be tremendously profitable for many people. Just like any extremely competitive endeavor there are only a limited number of people who are consistently successful long term. But then again how many kids get into Harvard and how many players make it to the NFL. Point being, trading is not something you can just do on the side and expect to make tons of money but just because few succeed at doing it doesn’t mean it isn’t possible.

]]> By: AJC http://7million7years.com/2008/05/07/what-is-the-best-way-for-a-newcomer-to-get-started-in-investing-in-stocks/comment-page-1/#comment-966 AJC Wed, 07 May 2008 22:19:32 +0000 http://7million7years.wordpress.com/?p=122#comment-966 @ MoneyMonk - Warren Buffett would be proud of you ... on both fronts :) @ MoneyMonk – Warren Buffett would be proud of you … on both fronts :)

]]>