Oh hey, guys, what's up? So I was thinking. Since I'll probably, most likely, eventually and unfortunately, get some not so nice comments or a few crazy people here and there finding the blog, since it's a numbers game and all, I just want to make it as clear as possible who this blog is and isn't for.
It's not a bash on anyone or anything, I just don't want to waste anyone's time, and I can only lead a horse so close to water with the advice I've learned.
I started this blog not for the cure-all for people's financial solutions or a get rich quick scheme, but to show you how ridiculously easy it is to begin to learn how to invest patiently and intelligently without having to rely on a financial advisor if and only if, you're willing to put the work in. If not, that's fine, you can learn all about index funds here too, but really it's meant to save yourself from financial advisors taking advantage of you, like mine did to me by investing in great companies, not just index funds.
I mean hell, I hardly know anything about tax breaks or 529 plans, so it's not like I have all the answers. I'm still only in the 4th year of my journey learning about this stuff too.
But, I wanted to create Appetite for Investing so you literally begin developing a craving to put investing first, whether that's in yourself to learn more about investing or to actually invest your money in the stock market to create the financial freedom you've always wanted.
It's really not as scary or confusing as it sounds, I sincerely mean that. And it's not a rip off if you approach it the right away and don't screw yourself over with ridiculous fees.
Maybe you want to use your capital gains to semi-retire early and live the life you want. Maybe it's so you can create a fund for your future kids and grandkids since we have no idea what the job landscape is going to be like in the future. Maybe it's to save for their college, I don't know.
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All I know is, I want this blog to be as helpful and interactive as possible. I'm always trying to learn new things, so this is supposed to be meant for an open discussion to help each other out.
So without further ado,
Who this blog is for
Are willing to work hard
- It's definitely not easy to get a solid foundational understanding of the basics of investing
- When I first started, I couldn't even read Charles Schwab's Guide to Financial Independence
- But once you do get a solid foundation, you're able to see the bigger picture and connect the dots between different philosophies of investing and why most approaches don't work
- It also, in my opinion, gets more exciting to read and learn more about investing because you know most people aren't willing to put the work in, so you're gaining a huge advantage over them
Understand they will have to read a lot in order to make the most of the material and gain a fundamental understanding of compound interest and investing
- Same idea as working hard, but what it really comes down to is getting in the habit of reading a lot
- I used to hate reading, I only finished I think The Great Gatsby in high school, I just didn't care for it since I couldn't make money from it
- But since I've realized how much of an edge you can gain over everyone else, I literally always have a book in my hand when I commute to and from work; sometimes I have two books when I know I'll finish one before the commute's over and whip the other one out without skipping a beat
- It's not like I'm reinventing the wheel on how to approach this either, I'm literally following Warren Buffett's advice and that's it, it's just that most people don't do that; from the books he recommends to suggested habits, I'm working on trying to learn as much as I can, it's not a difficult concept at all
Are investing for the long-term and not for making a quick profit
- If you're trying to make a quick buck in a short time frame, your chances of being successful compared to investing for the long-term are terrible
- Too many unknown circumstances could trigger a bear market, nobody knows when bear and bull markets start, except when it's all over
- If you want a successful performance, you need to be able to ride out the highs and the lows, so the longer you're in the game, the less chance you have of being severely affected by a bear market
Are willing to understand the difference between investing and speculating if they don't already
- Nothing is worse to me than seeing someone believe they're investing when all they're really doing is guessing
- Speculating is what traders do, it's more or less all luck
- You can have a trader who's very smart who got an MBA at Harvard, but still get everything wrong trading just by the bad timing or incorrect information received
- Speculating has nothing to do with investing and everything to do with gambling
Are not trying to ride the momentum of a stock from recent news and looking to sell it shortly after
- This is one of the most ridiculous things you can do, so good for you that you're not trying any funny business
- Buying a stock for short-term gains is ridiculous because you're exposing yourself to an insane amount of trading fees and short-term capital gains taxes
- As long as you realize long-term investing is the way to go, then this is the place for you
- There's no trick to getting rich if you're not trying to gamble with your life
- It's a slow and steady journey, and that's why I wanted to create the blog in the first place
- I want to track my progress in the hopes it motivates you to not give up and take control of your own money
- There's no shortcut, it takes a lot of work and focus to achieve financial freedom
Understand mistakes will be made
- If you don't think you're gonna make mistakes along the way, you're delusional
- When I first started “investing” in stocks it was a disaster
- I was buying 3D printing stocks, graphene stocks and basically trading left and right every few days, it was terrible
- If you looked at my history, it looked like I had schizophrenia
- And the best part was, my financial advisor was perfectly okay with it!!
- The guy never said anything, but when Apple when up to $150, he suggested I sell it because he didn't think it would go any higher any time soon; it's at $165 now at the time of this post even after losing 10% so what the hell does that guy know?
Can condition themselves to ride through the lows and invest when it happens
- This is probably the most difficult part to learn, at least it was for me
- When you're in the moment it feels so real the stock will keep going down and never go up again
- Even though it's a phenomenal company you're invested in, the pessimism is everywhere and you can't think objectively because of it
- But if you can push through that and realize history repeats itself, and what goes down must come up if you're invested in a great company, then have the confidence to invest more
- I did this when I had a $2,400 loss because I bought at the high
- It felt awful and so real I was never gonna get my money back, but I made a 55% swing in less than a year and made $10,000 back as a result
Don't get too happy when things are good and don't get too upset when things aren't in their favor
- Nothing is ever as good as it seems and nothing is ever as bad as it seems
- And nothing lasts forever either
- Learn to control your emotions
- If you can do that, then you'll have the confidence to invest in the lows like I just mentioned
Are willing to learn the difference between buying a stock as a piece of paper for the sake of it and buying a piece of ownership of a company
- Thinking of buying stock as just owning a piece of paper is a bad way to approach investing
- First of all, you don't own a piece of paper anymore, those days are gone
- Second, when you do buy stock, you buy ownership in a company
- So think about it, if you were to take over a business, unless you understood the industry, the balance sheet of that business, how it was run, etc., would you buy it?
- You probably wouldn't, at least I hope, and that's exactly how you have to approach investing
- When you buy stock of a company, you get voting rights for the annual shareholder meetings, because you are a part owner
- Buying stock of a company is buying ownership, so don't buy something you wouldn't want to own as a 100% owner
Who this blog is not for
Are looking for a get rich quick scheme
- There's no such thing, and if someone tells you they have a plan to get rich quick, run for the hills!
- There's no rush anyways, you have your whole life to build wealth, it's better to do it the responsible way
Want their money right away
- When you want it right away, you're only increasing the risk you'll lose money
- You never know what can happen in the short-term, so it's better to give yourself a long time frame to build your wealth
- You also generate a lot of trading fees for yourself if you're always taking your gains immediately, buying and selling frequently, so it's not worth it
Aren't willing to learn and gain a broad spectrum of knowledge across several industries
- You have to learn how everything connects to each other
- All industries in one way or another are somewhat connected even if it's a very loose connection
- When you gain an understanding of the fundamentals of investing, psychology, sociology, macro and microeconomics, history books, etc. you realize how much better of a perspective you develop and how it can be applied to investing
Don't like to read books
- At this point, its pretty self-explanatory
- If you don't want to learn more, there's really not much I can help you with
Favor spending over saving money to invest it
- You'll never be able to invest if you always spend more than you take in
- You need to get your priorities straight first before you can consider investing
- Don't borrow money to invest, make sure you're using your own money so you don't get screwed over in case the market goes down in the short-term
Don't like to work hard
- It's not even as fun to get everything handed to you anyways
- When you put it in the hard work and get rewarded for it, it feels a million times better
- If you don't wanna work hard then get outta here!
Looking for the winning lottery ticket
- There's no lucky stock when it comes to investing
- Even Amazon was a nightmare of a stock before it turned into the behemoth it is now
- Usually, the stocks that go up quickly, also quickly come down
- Just look at any 3D printing company stocks
- More than anything, you're just gonna have a really bad time investing
- It won't even be interesting or fun to you, you'll just be annoyed and maybe even quit
- Anything worth having doesn't come easy, so stay the course and develop patience
Try to guess when a stock will go up
- You can't time when a stock will go up, it's just not gonna happen
- Don't waste your time you'll only lose sleep over worrying about it
Don't try to find a side hustle to make more money and use it to invest in either themselves or stock of a company
- You need to find a side hustle to give yourself a financial cushion
- I'm starting to learn you can't rely on your day job between all the bureaucracy and politics
- Why not try to take more control of your income by starting a side hustle?
- I've spent over $3,000 in 3 years on books alone and I'm not even kidding it's been the best investment so far
So I hope this blog helps you guys out. I didn't want to give anyone the wrong impression it'll turn you into a clairvoyant or that I have a crystal ball. Nobody knows what's gonna happen in the short-term, but it's exciting to learn how to become a better investor so you have an edge over everyone else. It's a competition to me, so every time I finish a book, I feel great because I know most people didn't read it and I now know that much more. If you're competitive, think of it that way, and it'll be that much more interesting to you.
There's always more to learn so if you have any recommendations, shoot them over to me!
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