
Rabbit
 |
Sure, first, remember the difference between investing and trading. The bulk of my money is invested, put to work for the long run and otherwise prettywell left to do its thing. But I do have money I trade with. The latter is a lot more fun (especially when I win), but inherently more risky. So I trade a little and invest a lot.
To start, secondly, pick up an issue (or visit their website) for one of these: Businessweek, Forbes, or Fortune. Solid companies, some new and some very old, are discussed with sometime impressive general picture or specific details. There you get the ideas of what the companies do, what they may be doing differently, and the kinds of people running them. Just look. Then, as your experience grows, you might finish an article with a search for more details because you are really interested.
Third, and finally, if you are really wanting to "invest"--then don't bother looking at stock prices. Be interested in how well they do what they do, especially in relation to their competitors. You will get a feel for which is more comfortable to you. For instance, once you see how Coke is run and then how Pepsi is run, you will have an opinion on whether you like the broader diversified interest of Pepsi or the considerably more narrow focus of Coke. Both have their advantages, and both have similar profit potential. You will have an opinion whether or not you have the slightest clue as to current prices, trends, momentum, or all of those other "trader" things. This is investing, and the same thing applies to cars, retail merchants, steel makers, or gold mines. Just casually, and carefully, read about companies. Then sometime next summer, start picking out two, three, or ten, that stand out above the crowd for their consistent profitability and growth potential. Whatever the price you buy it at, if the company continues to profit and grow, the price of the stock will continue to rise. |