4 ms·

I thought this was an entertaining piece, probably very familiar to many. My maxim has always been : I don't to hire a financial advisor who I can actually aff

by brc 18y ago

I thought this was an entertaining piece, probably very familiar to many. My maxim has always been : I don't to hire a financial advisor who I can actually afford. You either need to educate yourself on what you're doing or stay out of the market. I know a guy who is paid to give advice to retirees looking to buy funds by a main street bank: he's paid on commission and has very little idea about what is going on. He dresses in a suit and sits in a little office and hands out shiny brochures, but as far as I can tell, he has less money than me, so there's no way I would ever take his advice. Most of these people would warn against investing $5,000 in your brother's startup, but would happily recommend purchasing AIG stock, even now. It's my take on the old 'I don't want to be a member of any club that will accept me as a member'

noodle 18y ago
indeed. i invest my own money, have had success even through this down market, and i only follow one simple rule: i invest only in what i personally understand. i learn about a company, see that they're a good investment, understand what my money is buying, and then decide on whether to invest or not. if i can't figure out where my money is going or what its doing, i don't invest. simple. i refuse to put it into a black box or have any black magics performed on it.
- maximilian 18y ago
  This is very closely along the lines of what I have been thinking a lot about lately regarding investing. You are basically betting that a company will not go bankrupt (when the stock is worthless..). The rest of the price fluctuations are just people's opinions. If I buy stock in companies I know nothing about, how can I possibly predict how well they are doing against the competition and why they are not going to go bankrupt. I think there is a place in an investment bank for quantitative analysis, but not for the regular investor. Most of the formulas they give are pretty shoddy anyway. When I have money to invest I will probably buy a big ol' index fund, which is like betting on the US economy, which will (hopefully) always be doing well. I might also then invest in a few companies that I know, understand, and really like.

by brc 18y ago

noodle 18y ago

indeed. i invest my own money, have had success even through this down market, and i only follow one simple rule: i invest only in what i personally understand. i learn about a company, see that they're a good investment, understand what my money is buying, and then decide on whether to invest or not. if i can't figure out where my money is going or what its doing, i don't invest. simple. i refuse to put it into a black box or have any black magics performed on it.

maximilian 18y ago
This is very closely along the lines of what I have been thinking a lot about lately regarding investing. You are basically betting that a company will not go bankrupt (when the stock is worthless..). The rest of the price fluctuations are just people's opinions. If I buy stock in companies I know nothing about, how can I possibly predict how well they are doing against the competition and why they are not going to go bankrupt. I think there is a place in an investment bank for quantitative analysis, but not for the regular investor. Most of the formulas they give are pretty shoddy anyway. When I have money to invest I will probably buy a big ol' index fund, which is like betting on the US economy, which will (hopefully) always be doing well. I might also then invest in a few companies that I know, understand, and really like.