Lux Investing

What important lessons have you learnt from investing your money?

Public Comments

1. put it in a mutual fund
2. invest some in high risk, some in moderate risk, some in low risk
3. Well, I am in my mid-50s. I have only had average experience time-wise over that period, but I do learn pretty fast about principles of anything. Investing, though, can be a Big game ... that is, you're in against the Big boys. You are better to learn and lose, which you will do at first in anything, while you are young and have no responsibility. So it doesn't matter that you lose; you just have to look after yourself. You are fit, and can work any losses off. That condition is very helpful. Me?? I started much later, but my first effort at business at 29 was clear failure - not enough research into the area that needed to carry the multi-service business I started. Tehn again, I had a friend who started his own business when single - at 18 - a green-grocer's business. He moved quickly; before he was 20 he had a 2nd business. He eventually became a millionaire - when becoming one meant more than today. His main asset, to me, was his very great 'Generosity', but he did believe in hard work and he put in 75 hours per week as an 18 year-old! That is tough stuff!! 2. You need to know your product very well; you need to get to know your suppliers very well, and what can and can't be done. You need to thoroughly learn your field, and everything about it ... don't rush in. Do your Research. 3. Get a Mentor. ... a Mentor who believes in 'doing the right' It is often very well to get an Expert [I mean a 'Real' very successful person - not just a Broker, for instance - a Guru. [As they say, "brokers" are often called brokers because they are 'broker' than you!] But he has to also be a Guru of great personal ethics and Godly disposition; there are many many well-practised fakes out there, who catch the inexperienced easily. 4. Like all people you will have to pay for mistakes early You will have to pay for good mentorship as well. As they say, "When a person who has money meets a person who has experience, the person who has experience will get the money, and the one who has the money will get the experience!! 5. Even in Real Estate, get a trustworthy successful operator in that field to help you - certainly, not just a real estate agent or a [so-called] "financial advisor"; you need someone who knows "investment" thoroughly and is proven personally successful, and is willing to take you through the whole process, unless you are one of these people who is very savvy. I was not, and needed honest reliable help. By the way, I knew a man who started buying properties at 18. He now has 6 - all fully paid for for years now. But he hasn't needed a job for at least 10 years. 6. You can also invest in stock; but, again the maxim applies regarding the man with money and the man with experience. You will certainly lose early on. If you are going to risk the stock market, you should at least minimize your losses by sticking with regular stocks [not "futures', etc.] and gamble only on 'blue chip' [top 200 companies]. They are less volatile and more reliable performers. Nevertheless, get a proven Mentor; remember, 80% of stock market traders lose money - overall. 10% of them break even, but ONLY 10% OF THEM ACTUALLY MAKE ANY MONEY! That mere 10% however, are only there because they have, over time, learned the real principles and have become 'the well-informed'
4. There are lots of ways to invest your money. A financial advisor can guide you through your best options and can also work out a strategy based on how comfortable you are with risk (the more risk the bigger the gain/loss). Ask to see their credential and references before taking their advice.