Reddit reviews A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Tenth Edition)
We found 24 Reddit comments about A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Tenth Edition). Here are the top ones, ranked by their Reddit score.
Read. All the famous investors started reading at a young age and read ferociously (ok maybe not all but most).
Go to the library if you can, they generally will have all the quality investing tomes, without some of the "get rich quick manuals" which only benefit the authors.
Here is a few books to start with:
Most of this stuff is investment theory. To be a successful investor as an average American, without a job in the finance industry, you probably don't have to read all of those books. If you really want to get into investing, that's a good place to start.
Also, the Bogleheads book is a great one to start with because you can decide if you really are interested in investing. If not, that book is good personal financial advice regardless who you're getting paid. It will benefit the regular American.
If you're just looking to learn instead of fulfilling a degree requirement then it is a probably more useful to pickup a book and do it yourself.
Some useful subs:
Some useful books:
The takeaway is that when it comes to investing there is no secret that will make you rich overnight. Picking random stocks hoping they suddenly shoot up is no different than gambling. Even the most well paid people in finance with all of their years of schooling cannot consistently beat the market.
Investing is a long term commitment.
Read "A Random Walk Down Wall Street" (http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393340740)
Disclaimer: I'm mid20s guy with less invested in shares than I have in my super. The following is what I did to get started in investing which sounds like you're about where I was a year or two ago.
First of all; depending on your circumstances be aware that ING Direct's or ME Bank's savings accounts are currently giving 3.00% interest which might be better than your term deposit if you don't want to go whole hog into shares right away. (ING Direct also does $50 bonus referral codes so expect a flood of PMs now that I've mentioned this)
As for books:
/r/FI's wiki makes some good recommendations from what I've read of them
>* The Bogleheads Guide to Investing
The lowest barrier to entry would be that "acorns" app but I strongly recommend taking the couple days to make a CMC account or some other online brokerage with low fees and buy ETFS through that instead so that you're actually learning how it all works and not just pressing buttons on an app. Link it up with free Sharesight account for pretty graphs and easy tax reporting and that should teach you more about "having a share portfolio" than the majority of the population.
Obviously this subreddit and /r/fiaustralia in the sidebar are worth keeping an eye on for insight from people with more skin in the game than me.
Now, the other option is you want to ACTIVELY trade that $1k. If you've read some of Bogle's explanations on why that's a bad idea, realised you'll be competing against people with much bigger budgets and a full time job anaysing these things and understand that even at CMC's low $13 flat fee you're losing 1.3% of your $1k packet with every trade then you'll need advice from someone other than me.
Personally the best investment I think I have made so far was my $1k of "beer money" that I threw into bitcoin. Not because it made a good return, but because after months of careful analysis, frequent trading and keeping an ear to the ground on new alt coins I turned my 3.5 bitcoin into 1.05. I didn't end up losing a cent thanks to other factors but seeing how badly my "high risk, high gain, actively managed portfolio" went I'm ecstatic that I learned my lesson with $1k and not with my self-managed super fund at 57 y/o like several people I know.
TL;DR: Anything by John Bogle
Judging from the broadness of your question, I'd suggest buying (or checking out from the library) a couple of books about investing. Start with the basics like: Charles Schwab, Peter Lynch, and Burton G. Malkiel. Right now, education is probably the best investment you can make (besides enjoying your life).
Ninja edit: It's good to be thinking and asking about investing, but, if you are serious about investing a serious chunk of money, learn the basics for yourself. You'll be better prepared to make the best decision for your money and your lifestyle.
Put it in something like this.
Your advice is biased by personal experience and anecdotes (2008). Real estate is not the great investment vehicle you make it out to be and even if it were, you could just buy REITs. Investing in a diverse portfolio has always outperformed all other investment types when viewed over the medium and long term and this even includes recent market crashes. Here are two books which used evidence collected from the inception of the stock market system to prove me right:
Hey dude, kind of in a similar position as you. Started reading about PF a little more than 2 months ago and wish I had started 10 years earlier, haha!
Take some time and read before jumping into anything! Here's what I started with:
and now I'm working through
Guide to Investing
Random Walk Down Wall Street
You will learn a crazy amount about investing with these few books.
I also keep my eye on the RFD Personal Finance forum along with Canadian Money Forums, the latter being a lot more mature.
This is really the wrong perspective to have. No one is telling you not to enjoy life, but you should really do some reading about investing and retiring. Now is when you should be socking money away, as 1) you can afford it and 2) you will reap the benefits when you are 55 (or whatever age you want to retire). If you, 10 or 15 years or now could read this, he would be sad.
Do 50 year old you a favor and read this or this.
Im a big fan of "A Random Walk Down Wall Street". http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393340740
I can recommend "A Random Walk Down Wall Street". Talks about everything you need to know.
Read A Random Walk Down Wall Street and then buy a market-indexed fund. I use one from ING, but I'm sure there are other options.
Edit: Downvoted by people who think they can beat the market? Or people who don't like to read? Or the mutual fund managers who don't want people buying indexed funds instead of paying inflated commissions for below-market returns?
You are young, do yourself a big favor and learn to invest on your own. It's easier than you think. The earlier you learn it the sooner it will serve you for the rest of your life.
Here's a great starter (a random walk down wall street): http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393340740/ref=sr_1_1?ie=UTF8&amp;qid=1373618108&amp;sr=8-1&amp;keywords=random+walk+down+wall+street
Best $15 you will ever spend.
Read those books and start using that software. You'll absolutely recoup your initial $100. The books will give you a basic education on investing. The software will let you find money in your budget to invest.
Just read the book: A Random Walk Down Wall Street. It basically explains the best way for non-rich people to benefit the most from the stock market.
I would like to recommend as fitting nicely with the 1 doge = 1 doge philosophy of "enthusiastic indifference" the following two references for those interested in economics and currency markets:
Evidence for the fact that the stock market is efficient so to try to beat or time the market is basically impossible:
A Random Walk Down Wall Street
Very helpful community for beginning investors:
Bogleheads Guide for Beginner Investors
Posting for postings sake really.
Early 20's small timer dipping my feet into the world of investing. My only experience is the 4 unit finance class I took in College last year and whatever snippets I've read from /r/PF (mostly ppl recommending you have an emergency fund setup, debts taken care of and vanguard retirement plan). I have A random Walk arriving this weekend but decided to get into it a tad earlier just to feel it out.
I purchased $100 of AMD stock over the last couple of months starting in Oct. through RH. Since my initial investment, I've gotten a return of 12% which I think is pretty good taking it for what it is. I see the stock doing much better in 1 years time and will hold out until then regardless of performance while continuing to dump my pre-budgeted spending money into it (usually $100/month).
Again, I know it's virtually nothing at the moment but I want to further chase these feel goods with initial investments into some other companies. SHOR, BBRY, TMUS, and FEYE are on my watch list and I plan on reading up on Utilities, Healthcare and Energy but one step at a time.
TLDR: Hi guys, Where do you recommend I look to learn about energy, health/pharm/utilities.
EDIT: what do any of you think about CPRX?
I would read <a href=http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393340740/&gt;A Random Walk Down Wallstreet</a> for a good summary on investing basics. Also, I agree that Fooled by Randomness is a fantastic book from a philosophical standpoint.
This book by Burton Malkiel does a better job explaining this point that the business card. It's only $10, too, and I'd consider it required reading for anyone who's learned about the stock market through a combination of parental advice and Hollywood.
A Random Walk Down Wall Street
A Random Walk Down Wall Street
I'm halfway through A Random Walk Down Wall Street. It is fairly easy to read and seems to cover all the common investment strategies. If you're thinking about long term investing you should check it out.
The author contends that the best performing investment strategy over long periods (such as 30 years) is a widely diversified portfolio that covers the entire market (e.g. index fund). Frontline aired an episode last year that came to the same conclusion. Mutual funds have management fees that reduce your gains. Fund performance will vary over time as the market changes (and fund management changes).
Another thing to consider is tax; you will pay capitol gains tax in the year you sell (15% of sale $ - buy $). Purchasing another stock does not get you out of this.
I don't know much about the plans, but I do know this: I enrolled in TIAA/CREF back when I worked for a few years at a public university decades ago. I can't roll it over into an IRA without risk. If I did roll it over, NJ would consider me permanently retired and ineligible for any full-time state or municipal jobs.
It is not that I plan to ever work for the state again, but, hey, you never know.
So now I'm sorta stuck with the TIAA/CREF plans until I retire, which is just more paperwork (and less investment options) with which I have to deal. I've mostly consolidated all of my other ex-employer plans into a single IRA.
For some investment advice: read A Random Walk Down Wall Street, 10th edition. I have an MBA in Finance and highly endorse this book for all investors. WIth the options you have from your employer, I'd bet you'd be able to apply what you learn from the book to your portfolio.