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Most feel investing in stocks either takes too much time or requires too much study and information. This is not necessarily true. What once did require the reading of corporate reports for the necessary information and understanding the mathematical analysis of the reported earning statements etc, now is readily available to you free online (ie. MSN, Yahoo financial).

What I have done is found a very good newsletter as well and subscribed to it. It is the Motley Fool Stock Advisor. Between this and the online community at their website, Fool.com. It really helps shorten the learning curve and identify possible companies I may be interested in. Also impressive is the recorded purchase and sale of every recommendation the newsletter has made in its history, good ones and bad. The track record is impressive.

While not really secrets, here’s the common sense approach I’m taking. It’s not about speculating but buying companies because they are getting it right. They are companies doing business in areas I am familiar with and enjoy. Here’s some of my guidelines I have learned:

  • an attitude that when you buy stock in a company, you are buying the business, not a ticker. I am interested in a company’s prospects, future, and management. I am not interested in wild speculation. A companies past earnings history is very important.
  • a contrarian approach. I want to find these businesses when the market isn’t interested in them. This means they will be selling at a discount.
  • I have learned that you can mange your money and plan your retirement. A broker is not necessary, especially if you are not dealing with large amounts of money. Excellent information is now available, anytime, online.

I encourage you to get a plan. Read, study and commit to something. (Like an hour per week.) Even saving a little can be powerful if you begin early.