13 Steps to Investing Foolishly
What Does It Take To Invest
Like a Fool?
not yet realize it, but right now you're staring at a ticket
to financial independence. That's right -- this small electronic
file might make a big difference in your life, enabling you
to retire in your 50s (or 40s, even), send your grandchildren
to college, buy that summer place on Lake Watchamacallit,
or fly around the world in a zeppelin emblazoned with your
high school nickname.
"Hot Lips." Can you hear the violins playing as
you float over a herd of wildebeest charging across Ngorongoro
probably heard of The Motley Fool. But you may not yet know
what we're all about and what we can offer you.
Fools David Gardner, Tom Gardner, and Erik Rydholm came up
with a mission and cranked out the first issue of The Motley
Fool printed newsletter in July 1993. The Fool debuted online
a year later, on August 4, 1994. That mission was, has been,
and will always be to help you to invest for yourself and
gain control of your personal finances. We want to help you
make the smart decisions about your money.
to educate, amuse, and enrich -- all at the same time. We
know that most people have never been taught much about finance
or investing, and that a glance through The Wall Street Journal
or a mutual fund prospectus sometimes can be rather intimidating
or confusing. That's how they like it. But you know better
(or at least you're going to in just a moment).
to your finances isn't as mysterious and complex as you've
probably imagined. The professional Wise men on Wall Street,
however, would like you to keep thinking it's too difficult
for you to do yourself. That way you'll entrust your hard-earned
dollars to them, so that they can generate fat commissions
for themselves. Yes, there are some good brokers out there
worth the money they charge. But know that most financial
advisors aren't paid by how well they manage your investments,
but by how often they get you to trade in and out of stocks.
And what do you get in return? Sub-par performance and lower
a little time and we'll show you how you can beat Wall Street
at its own game. You read that right. Your portfolio shouldn't
have much trouble trouncing 75% - 90% of professionally managed
for a hot stock tip.
We think the person who most has your financial best interests
at heart is you. That's right -- you're the one who should
be making the decisions affecting your monetary future. And
you don't need an MBA or a pair of suspenders or a pricey
summer home in the Hamptons. You don't even need a stranger's
hot stock tip. (FYI: Most of those were cold long before they
got to you.) Believe it or not, some fifth-grade math is pretty
much all you need to get better returns than most professional
money managers. Once you've got a little painless learning
under your belt, we suspect you'll find that managing your
own money can actually be fun.
this modest electronic file. In it we lay out a systematic
approach to investing that should benefit novice and seasoned
investors alike. We first focus on getting your financial
house in order, then move into a discussion of various investment
options, and later address more advanced investing topics.
presented here should frighten or intimidate you (unless you
happen to be frightened by semicolons or puns involving llamas).
You don't need any fancy credentials in order to understand
anything in here, but that doesn't mean you should jump immediately
into the stock market whole hog. Ease into investing. Take
it one step at a time. For example, you might want to first
move your mutual fund money into an S&P 500 index fund
(we'll explain why shortly) and then take a breather while
you read and learn more. Don't take any action until you're
comfortable with what you're doing.
further ado, let's part the curtains and unveil the Foolish
approach to investing.
(The sound of curtains being drawn open)
(Oohs and ahhs from the audience)
(Someone in row 17 coughs.)
(Someone in row 12 shushes the lady in row 15 unwrapping her
Step: What is Foolishness? »
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