That’s because successful investing has far more to do with how you act than with what you know. A lot of the principles that Ben Graham wrote about back then still hold today. I don’t know if you’re familiar with this one. This is the one that got me to invest in Square and to find opportunities like that.
The Motley Fool Investment Guide for Teens: 8 Steps to Having More Money Than Your Parents Ever Dreamed Of
For Making Sense of Investing Today Once you learn to tune out the hype and focus on meaningful factors, you can beat the Street. The Motley Fool Investment Guide, completely revised and updated with clear and witty explanations, deciphers all the new information — from evaluating individual stocks to creating a diverse investment portfolio. David and Tom Gardner have investing ideas for you — no fuide how much time or money you. This new edition of The Motley Fool Investment Guide is built for today’s investor, sophisticate and novice alike, with updated information on:.
2. Having the proper temperament is more important than number crunching
Paying out a weekly allowance to a teenage son or daughter can inspire immense trepidation in a parent. A grandparent who sends a money gift for a grandson or granddaughter’s 16th birthday can only ponder what sort of trendy electronics or clothing it may be used to acquire. While parents and grandparents may ultimately have a little say about what a teen does with money once he or she has it in pocket, they may be able to make a compelling argument for thrift after sharing this book with their charges. The co-authors, Tom and David Gardner, who are brothers, founded the Motley Fool, an investment information service based in Alexandria, Virginia, in It has since grown to include a popular online site, www. Selena Maranjian is a senior writer at The Motley Fool. When it comes to investing, as the authors aptly state, «The more years you have, the better.
The Motley Fool Investment Guide is a great place to begin your investing journey. Here are four of the classic tenets highlighted in the book.
Paying out a weekly allowance to a teenage son or daughter can inspire immense trepidation in a parent. A grandparent who sends a money gift for a grandson or granddaughter’s 16th birthday can only ponder what sort of trendy electronics or clothing it may be used to acquire. While parents and grandparents may ultimately have a little say about what a teen does with money once he or she has it in pocket, they may be able to make a compelling argument for thrift after sharing this book with their charges.
The co-authors, Tom and David Gardner, who are brothers, founded the Motley Fool, an investment information service based in Alexandria, Virginia, in It has since grown to include a popular online site, www. Selena Maranjian is a senior writer at The Motley Fool. When it comes to investing, as the authors aptly state, «The more years you have, the better.
There has rarely been a better time to be or to have a teenage investor: Stock prices are at their lowest in years. As the book describes, there is a growing array of educational Individual Retirement Accounts available to teens and their parents as well as adult-oriented retirement funds such as a Roth IRA that a teen could take advantage of in youth.
There are also a host of low-fee mutual funds targeted at the young investors that, along with the authors’ favored index funds, offer relatively hassle-free, long-term growth prospects. The page book explains, in straightforward teen-speak, everything from bank accounts to single-stock equities, bonds, mutual funds, index funds, certificates of deposit and retirement accounts. The book’s authors, all of whom are in their thirties, rather shrewdly hook their readers in by first appealing to their material desires as well as their need for financial independence.
Not only does financial independence mean that «you can provide for yourself and those you love,» according to the authors, but it means «being able to fly off to wander the coves and beaches of the Bay of Islands in New Zealand. It means being able to buy a great mountain bike…». Within the first 20 pages of the book, the authors demonstrate through anecdotes and charts the «millionaire-making magic of compounding» annual growth, particularly in the stock and bond markets.
To take advantage of compounding, a teen has to be willing to sock away a chunk of change regularly and then leave it there to accrue. That said, a teen must have money to make money. The authors introduce teenagers to the concept of opportunity cost.
By showing oneself to be a responsible investor, the authors suggest, a teen can inspire added fiscal generosity from parents. It might not be out of line, the Gardeners suggest, for a teen to go to his or her parents and ask them to match his or her annual contributed savings, as a company would with a K retirement plan.
Thankfully, the authors do not confine their discussions to how best to invest money or secure it from parents. They also give a hearty plug for finding gainful employment. Likewise, they make a strong economic argument for going to college by showing, in chart form, the earning power of education by grade levels. In addition to explaining different investment vehicles and strategies value investing, dollar-cost averaging and so onit talks about debt and related interest payments, including the dangers of accruing credit-card debt.
To drive home the point, the authors offer first-person accounts from people who as teens stumbled into sinkholes of credit-card debt and took years to get. It offers some good advice for negotiating rates on motley fool investment guide book debt as well as brokerage commissions and the like. As with anything involving the distribution of media to a child, it is not a bad idea for a parent or grandparent to read the book first in order to be prepared for the actions it might inspire.
The authors are fairly heavily biased toward the stock market as opposed to bonds or standard savings accounts. Consider this passage: «Some people avoid the stock market because it is too darned risky. Believe it or not, over your lifetime as an investor, it’s riskier not to invest in the stock market.
Helena, California.
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And sometimes the market will take years to recover and reach new highs. Beyond that, I’d love to recommend some of the classics, I know this was on my last book list I did on this podcast a few motley fool investment guide book ago, but I have to reiterate Peter Lynch’s books, especially One Up on Wall Street. I keep on going back and looking at it. A lot of motley fool investment guide book principles that Ben Graham wrote about back then still hold today. You recognize that it’s not a one-size-fits-all. How many investors sold when the stock lost more than half its value and hit all-time lows as it struggled through setting a strategy? Even after the recent correction, it’s been a big winner. We bopk at criteria such as competitive advantage, market opportunity, strength of leadership, and other characteristics that are tough to plug into a financial calculator. The third edition gives investors of all skill levels information for motpey a portfolio that can weather any storm. After all, it’s been a long time since Mr. What investor would complain about a double in such a short amount of time? He led that company from a very difficult position into a position of success, and Ford has done very well since. Some of the mtoley covered in the Guide include:. Invest money you plan on keeping in the market for at least five years. For me, it all boils back down to, what is the goal of your healthcare system? I’m glad the occasion arose, because the book is chock-full of great investment advice. It’s an easy read, but it’s so informative.
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