Seeking Investment Guides

[gdub]

I should know to expect such comments, but I personally (and maybe this is why I need to learn some stuff) don’t think that gold is the only sound investment. I have very little concern in the idea of investing now, or in the near future, in stocks with the intent of having a 30-40 year investment.

And I know some things about markets, stocks, etc. But I would like to find some guides to learn the general fundamentals. For example: Let’s say I came on here and said I am planning on making a big investment in Bank of America and Citi. (maybe a bad example, but bear with me) I would be laughed at. But why is this not a good idea? I know its not, but if you had to prove to me that these are bad investments, what would you say? It’s easy to state the obvious opinion that these companies are hurting, but I would like to gain an understanding of the fundamentals.

I don’t think it is there yet, but I see this current economic climate as a possible opportunity to think long-term. I just want to know, somewhat, what I’m doing. I’m not looking for something that wants to tell me that it is a great chance to buy X stock this week, but not Y. And no offense to the great wisdom out there, but I wasn’t really looking for advice to “buy gold.” I was looking to learn why someone would tell me that in the first place. I’m just looking to learn the basic fundamentals of investing. Where can i get this?

And chivas wouldn’t work. Consumable goods would not last as a long-term investment for me.

[patientrenter]

gdub,

You can throw money into well-known diversified investments. If you want to be more adventurous, and feel like you know what you’re doing, then try to understand the real underlying economics behind what you hear every day on the TV. Buy a book or two on basic economics (Econ for Dummies….), and try to decipher how various things you hear about get factored into the GDP number.

My favorite is how making it very difficult for people to do worthwhile things can actually make the GDP measure of economic welfare bigger. Imagine someone making good soup every day, selling it for $2 a bowl. Then imagine paying an attorney to entice customers to sue the chef. The chef charges more for the soup, and the wages of the attorney are also counted in GDP. We have the same soup as before, but the GDP is a lot higher. A lot of our economics is like that, but most people don’t realize it, and most economists lose sight of it.

Anyway, after 5-10 years of learning, you should begin to be able to make your own investment choices.

[patientrenter]

gdub,

You can throw money into well-known diversified investments. If you want to be more adventurous, and feel like you know what you’re doing, then try to understand the real underlying economics behind what you hear every day on the TV. Buy a book or two on basic economics (Econ for Dummies….), and try to decipher how various things you hear about get factored into the GDP number.

My favorite is how making it very difficult for people to do worthwhile things can actually make the GDP measure of economic welfare bigger. Imagine someone making good soup every day, selling it for $2 a bowl. Then imagine paying an attorney to entice customers to sue the chef. The chef charges more for the soup, and the wages of the attorney are also counted in GDP. We have the same soup as before, but the GDP is a lot higher. A lot of our economics is like that, but most people don’t realize it, and most economists lose sight of it.

Anyway, after 5-10 years of learning, you should begin to be able to make your own investment choices.

[patientrenter]

gdub,

You can throw money into well-known diversified investments. If you want to be more adventurous, and feel like you know what you’re doing, then try to understand the real underlying economics behind what you hear every day on the TV. Buy a book or two on basic economics (Econ for Dummies….), and try to decipher how various things you hear about get factored into the GDP number.

My favorite is how making it very difficult for people to do worthwhile things can actually make the GDP measure of economic welfare bigger. Imagine someone making good soup every day, selling it for $2 a bowl. Then imagine paying an attorney to entice customers to sue the chef. The chef charges more for the soup, and the wages of the attorney are also counted in GDP. We have the same soup as before, but the GDP is a lot higher. A lot of our economics is like that, but most people don’t realize it, and most economists lose sight of it.

Anyway, after 5-10 years of learning, you should begin to be able to make your own investment choices.

[patientrenter]

gdub,

You can throw money into well-known diversified investments. If you want to be more adventurous, and feel like you know what you’re doing, then try to understand the real underlying economics behind what you hear every day on the TV. Buy a book or two on basic economics (Econ for Dummies….), and try to decipher how various things you hear about get factored into the GDP number.

My favorite is how making it very difficult for people to do worthwhile things can actually make the GDP measure of economic welfare bigger. Imagine someone making good soup every day, selling it for $2 a bowl. Then imagine paying an attorney to entice customers to sue the chef. The chef charges more for the soup, and the wages of the attorney are also counted in GDP. We have the same soup as before, but the GDP is a lot higher. A lot of our economics is like that, but most people don’t realize it, and most economists lose sight of it.

Anyway, after 5-10 years of learning, you should begin to be able to make your own investment choices.

[patientrenter]

gdub,

You can throw money into well-known diversified investments. If you want to be more adventurous, and feel like you know what you’re doing, then try to understand the real underlying economics behind what you hear every day on the TV. Buy a book or two on basic economics (Econ for Dummies….), and try to decipher how various things you hear about get factored into the GDP number.

My favorite is how making it very difficult for people to do worthwhile things can actually make the GDP measure of economic welfare bigger. Imagine someone making good soup every day, selling it for $2 a bowl. Then imagine paying an attorney to entice customers to sue the chef. The chef charges more for the soup, and the wages of the attorney are also counted in GDP. We have the same soup as before, but the GDP is a lot higher. A lot of our economics is like that, but most people don’t realize it, and most economists lose sight of it.

Anyway, after 5-10 years of learning, you should begin to be able to make your own investment choices.

[Anonymous]

You need to know how to read a balance sheet for the company/equities you are wanting to invest. Check out all 3 of Cramer’s Mad Money books. He goes over specific examples of how to read these balance sheets, price to earnings ratios, long term/short term debt, etc. Just don’t pick the stocks in the books. His motto: “Buy and homework, not buy and hold”. Do your own research for the sectors you like. I’ve heard Cramer say numerous times that if he was investing for retirement he would pick one or two mutual funds and invest in those, but if he is trying to make money short term, trading 5-10 stocks is another way. 1 hour of homework per stock you own per week, listening to conference calls, reading headlines, etc.

For basic finance, try “Personal Finance, Desk Reference”. You can find it at any major book store.

For really early starters, try http://money.cnn.com/magazines/moneymag/money101/index.html

-RD

[Anonymous]

You need to know how to read a balance sheet for the company/equities you are wanting to invest. Check out all 3 of Cramer’s Mad Money books. He goes over specific examples of how to read these balance sheets, price to earnings ratios, long term/short term debt, etc. Just don’t pick the stocks in the books. His motto: “Buy and homework, not buy and hold”. Do your own research for the sectors you like. I’ve heard Cramer say numerous times that if he was investing for retirement he would pick one or two mutual funds and invest in those, but if he is trying to make money short term, trading 5-10 stocks is another way. 1 hour of homework per stock you own per week, listening to conference calls, reading headlines, etc.

For basic finance, try “Personal Finance, Desk Reference”. You can find it at any major book store.

For really early starters, try http://money.cnn.com/magazines/moneymag/money101/index.html

-RD

[Anonymous]

You need to know how to read a balance sheet for the company/equities you are wanting to invest. Check out all 3 of Cramer’s Mad Money books. He goes over specific examples of how to read these balance sheets, price to earnings ratios, long term/short term debt, etc. Just don’t pick the stocks in the books. His motto: “Buy and homework, not buy and hold”. Do your own research for the sectors you like. I’ve heard Cramer say numerous times that if he was investing for retirement he would pick one or two mutual funds and invest in those, but if he is trying to make money short term, trading 5-10 stocks is another way. 1 hour of homework per stock you own per week, listening to conference calls, reading headlines, etc.

For basic finance, try “Personal Finance, Desk Reference”. You can find it at any major book store.

For really early starters, try http://money.cnn.com/magazines/moneymag/money101/index.html

-RD

[Anonymous]

You need to know how to read a balance sheet for the company/equities you are wanting to invest. Check out all 3 of Cramer’s Mad Money books. He goes over specific examples of how to read these balance sheets, price to earnings ratios, long term/short term debt, etc. Just don’t pick the stocks in the books. His motto: “Buy and homework, not buy and hold”. Do your own research for the sectors you like. I’ve heard Cramer say numerous times that if he was investing for retirement he would pick one or two mutual funds and invest in those, but if he is trying to make money short term, trading 5-10 stocks is another way. 1 hour of homework per stock you own per week, listening to conference calls, reading headlines, etc.

For basic finance, try “Personal Finance, Desk Reference”. You can find it at any major book store.

For really early starters, try http://money.cnn.com/magazines/moneymag/money101/index.html

-RD

[Anonymous]

You need to know how to read a balance sheet for the company/equities you are wanting to invest. Check out all 3 of Cramer’s Mad Money books. He goes over specific examples of how to read these balance sheets, price to earnings ratios, long term/short term debt, etc. Just don’t pick the stocks in the books. His motto: “Buy and homework, not buy and hold”. Do your own research for the sectors you like. I’ve heard Cramer say numerous times that if he was investing for retirement he would pick one or two mutual funds and invest in those, but if he is trying to make money short term, trading 5-10 stocks is another way. 1 hour of homework per stock you own per week, listening to conference calls, reading headlines, etc.

For basic finance, try “Personal Finance, Desk Reference”. You can find it at any major book store.

For really early starters, try http://money.cnn.com/magazines/moneymag/money101/index.html

-RD

[Anonymous]

One of the classic intro books on practical applications of investment theory is Malkiel’s A Random Walk Down Wall Street. Like anything written about investing, there is debate about the merits of the author’s opinions, but nevertheless the book provides some very important background.

IMO, the value in “Random Walk” is that it provides an overview of the spectrum of basic investment approaches and some analysis of each approach based upon real data. It will teach you that any idea you may come up with has been tried before and already studied in depth (i.e. there is probably already an name for it.) The book also provides examples of past speculative bubbles as well as many common gimmicks and scams (I’m sure ol’ Bernie Madoff will get some mention in the next edition.)

The title of the book is a variant of the name for the Effcieint Market Theory, which is one of the classic (and most likely intractable) debates in investment theory. Based upon my understanding of what you wrote, this concept may be part of the answer to your question about BofA and Citi.

[Anonymous]

One of the classic intro books on practical applications of investment theory is Malkiel’s A Random Walk Down Wall Street. Like anything written about investing, there is debate about the merits of the author’s opinions, but nevertheless the book provides some very important background.

IMO, the value in “Random Walk” is that it provides an overview of the spectrum of basic investment approaches and some analysis of each approach based upon real data. It will teach you that any idea you may come up with has been tried before and already studied in depth (i.e. there is probably already an name for it.) The book also provides examples of past speculative bubbles as well as many common gimmicks and scams (I’m sure ol’ Bernie Madoff will get some mention in the next edition.)

The title of the book is a variant of the name for the Effcieint Market Theory, which is one of the classic (and most likely intractable) debates in investment theory. Based upon my understanding of what you wrote, this concept may be part of the answer to your question about BofA and Citi.

[Anonymous]

One of the classic intro books on practical applications of investment theory is Malkiel’s A Random Walk Down Wall Street. Like anything written about investing, there is debate about the merits of the author’s opinions, but nevertheless the book provides some very important background.

IMO, the value in “Random Walk” is that it provides an overview of the spectrum of basic investment approaches and some analysis of each approach based upon real data. It will teach you that any idea you may come up with has been tried before and already studied in depth (i.e. there is probably already an name for it.) The book also provides examples of past speculative bubbles as well as many common gimmicks and scams (I’m sure ol’ Bernie Madoff will get some mention in the next edition.)

The title of the book is a variant of the name for the Effcieint Market Theory, which is one of the classic (and most likely intractable) debates in investment theory. Based upon my understanding of what you wrote, this concept may be part of the answer to your question about BofA and Citi.

[Anonymous]

One of the classic intro books on practical applications of investment theory is Malkiel’s A Random Walk Down Wall Street. Like anything written about investing, there is debate about the merits of the author’s opinions, but nevertheless the book provides some very important background.

IMO, the value in “Random Walk” is that it provides an overview of the spectrum of basic investment approaches and some analysis of each approach based upon real data. It will teach you that any idea you may come up with has been tried before and already studied in depth (i.e. there is probably already an name for it.) The book also provides examples of past speculative bubbles as well as many common gimmicks and scams (I’m sure ol’ Bernie Madoff will get some mention in the next edition.)

The title of the book is a variant of the name for the Effcieint Market Theory, which is one of the classic (and most likely intractable) debates in investment theory. Based upon my understanding of what you wrote, this concept may be part of the answer to your question about BofA and Citi.

[Author]

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