Here’s an email from Keith, who served in the Gulf War and has had some tough times since coming back. We’d been going back and forth about how to get him started in investing when he asked me the following question:
Date: Sep 19, 2005
Subject: Weekly Tasks?
Other than the Get Motivated seminar DVD’s and workbook. What do you suggest that I do each week since I am a beginning investor (this may be a good thing to put on your blog site if not already there) in the way of Stock Market news programs (such as Jim Cramer’s Mad Money), magazines, newspapers, websites, etc. I don’t want to analyze things to death, but in essence if I could only watch / read 2 to 3 things within each catogory each week what would they be? OR should I just solely focus on the materials (DVD’s, workbook, success website) I have already?
Can’t wait to get your book in March ’06.
And my response:
The best thing to do with your time is to figure out one industry. One at a time. Start by asking yourself 3 questions: what are my passions, what are my talents, where do I spend or make money? If anything is the answer to all three questions, start with that industry. Dig into it on Yahoo/Finance/Industries. Start figuring out which businesses in this industry are wonderful.
If you become an expert at an industry, you will have the most important thing: an understanding.
Then you keep going from there. And remember: take time to go play.
Basic but important. To be a Rule #1 Investor, you have to start at the beginning of the 4M’s, with Meaning. Learn as much as you can about the companies you may want to consider buying. And don’t be afraid to ask me questions about your work.
OK. It’s officially the weekend. Go outside!
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.