About victor mader Expertise I`m not a broker therefore I can assure that I earn no monies from my unbiased advice. I usually don`t comment on specific stocks but rather how to avoid getting "taken" by any unethical brokers, financial advisors, etc. I have 35 years of personal experience and stay well informed. My goal is to make you a better informed investor. I`ve been told by several stock brokers that I know more than many registered brokers.
Experience I spend an average of 1-2 hours per day reading about investments and have since 1965. I now have accounts at DLJ and Goldman Sachs, two very fine firms.
Expert: victor mader Date: 9/7/2000 Subject: Stock
Question Is there any advice you can give a 20 year old that is interested in the stock market and has some shares in a couple of companies. I am currently tracking 25 companies, and will be buying more shares soon. Any good stocks that I should know about?
Thanks Victor!!
Answer Keep learning. It's too bad that you'll learn (after a lot of time) that the best way to invest is to buy and hold. Often no-load mutual funds (index funds) will do better than you and these funds will best 90% of all funds. It's demoralizing that they're not even managed, they simply own all the stocks in an index. Remember that the stock market is made up of all of "us", so you have to presume you're either smarter, or know more than average, to best the "average" investor. Further, studies have shown the more you trade the worse you do. Index funds (or there equivalent which trade on the American Stock Exchange) cost you very little in cap gains tax, also helpful. Invest in an IRA as soon as possible, all you can, tax free gains are far better than taxable.
Best lesson: keep studing, read all you can, but be conservative in your risks. Also, remember this: everyone likes some company so just because you read an article about a stock somewhere doesn't mean it's something special..all stocks are touted: some for genuine reasons, some by people who are trying to get the price up for less than honest reasons.
Good Luck,
Victor
Wall Street Journal and Forbes: easy reading and you'll learn a lot, I'd subscribe to both.
