mccole72 Posted March 29, 2019 Share Posted March 29, 2019 Hi everyone, I am new to this site and have been very impressed with the threads I’ve read so far. I am new to both investing and value investing - I’m 28 and have only been working full time less than 2 years. In my first 26 years I didn’t even really know what a stock was. Having actual savings, I began playing with compound interest calculators, and I quickly realized the value of increasing both time and alpha. This led me to explore investing, which led to reading people like Peter Lynch, Mohnish Pabrai, Guy Spier, which led me to where I am now: reading Buffett’s annual letters, 10Ks and this forum for fun. “Value investing” really resonates with me, and I see myself doing this stuff for the rest of my life, but at the moment I am having trouble getting the ball rolling. Part of that may just be because most companies appear to be full/overpriced right now. Is right now just a hard time to buy good companies with a wide margin of safety, or is my inexperience making me hesitant? I am naturally a cautious and patient person. I would appreciate any words of advice on how one should get started, or your personal example of how you got started. From what I can gather, this forum seems to be full of DIY investors and perhaps some fund managers, all of whom follow a value-type approach, and I am curious to hear your thoughts. I should mention that I recently inherited a nice little chunk of money as an inherited IRA. While it may have been a bit easier to get the ball rolling by investing as I saved my own earnings in bite sized pieces, the magnitude of inheriting money is more daunting, but also exciting. There is a post on this thread “how to invest 100k” with some helpful advice. One suggestion that came up repeatedly was to start in real estate, but I am in coastal CA where prices are high, and if I bought with lots of leverage and rented out it would be hard be break even on the mortgage. Another suggestion was indexing or a “target retirement fund”, which I think of as kind of a fall-back option if I find I don’t have the skill or time to pick companies to invest in. I think of a basic hierarchy of investing as 1. Bury cash in the backyard 2. Pay an FA 1-2% to deliver market avg return 3. Invest in low fee index funds for market avg returns 4. Pick companies using Buffett approach for above market returns (if you know what you’re doing). I’m currently at 3 trying to get to 4. Thanks! MC Link to comment Share on other sites More sharing options...
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