Bill Barker: Well, I started investing when I was 22 years old. It was actually my first paycheck out of college. I had a moderate amount of debt and a modest income, but I still managed to save a little bit of money from that first paycheck. I remember thinking, what am I going to do with this money? I decided to invest it in the stock market. I was always fascinated by the idea of owning a piece of a company and benefiting from its success. So, I took that money and bought shares of a few companies that I believed in. It was a small investment, but it was the start of my journey as an investor. Over time, I continued to invest in the market, learning along the way and building a portfolio that has grown significantly over the years. Investing has become a passion of mine, and I’m grateful for that first paycheck that set me on this path.
Mary Long: That’s a great story, Bill. It’s amazing how that first paycheck can really kick off a lifelong journey of investing. For senior analyst Maria Gallagher, it was a similar experience, but with a twist.
Maria Gallagher: Yes, Mary. My investing journey started with my first real job out of college. I had been saving a little bit of money from each paycheck, but I wasn’t sure what to do with it. One day, a colleague mentioned that he was investing in the stock market and recommended that I give it a try. I was intrigued by the idea of potentially growing my money through investing, so I decided to take the plunge. I started by doing some research on different companies and industries, and eventually, I made my first investment. It was a small amount, but it was a start. Over time, I continued to invest regularly, learning more about the market and honing my investing strategy. Today, investing has become a key part of my financial plan, and I’m grateful for that initial push to get started.
Mary Long: It’s so interesting to hear how that first step into investing can lead to so much growth and learning over time. For senior analyst Tom Gardner, it was a family connection that sparked his interest in investing.
Tom Gardner: Yes, Mary. My father was actually the one who introduced me to investing. He had been investing in the stock market for many years and had seen some success with it. When I was in college, he encouraged me to start investing as well. He taught me the basics of investing, how to research companies, and how to build a diversified portfolio. I started by investing a small amount of money in a few companies that I believed in. Over time, I continued to invest regularly, adding to my portfolio and learning more about the market. Investing has become a passion of mine, and I’m grateful to my father for introducing me to this world of opportunity.
Mary Long: It’s amazing how a family member can have such a big impact on our lives, especially when it comes to investing. For senior analyst David Meier, it was a combination of factors that led him to start investing.
David Meier: My personality is such that I tend to bet big, if you will. I tend to make larger investments and fewer of them based on the research that I do. That has worked out well for me, but it can be a little volatile, but I’ve also missed out on a lot of things because I’m like, oh, well, I don’t really have any capital right now. I don’t want to sell this. If you see something that’s interesting, make a little investment.
Mary Long: I’m Mary Long, and that’s Motley Fool senior analyst David Meier. The start of the new year comes with the promise of possibility. Where might you be one year from now? How about in five? Ten, 20. Something you start today could kick off a whole new way of being. You just got to set the intention, make the leap and keep on showing up. Keep on giving it your best shot. Maybe your resolution is to go to the gym three times a week. Maybe it’s to finally write that novel. Maybe it’s to invest a bit more each paycheck. Maybe it’s to start investing in the first place. To welcome in the New Year, I rounded up a few of our Foolish analysts and talked to them about their investing origin stories, things they’ve learned since then, and what advice they’d give to folks who are making the first steps in what is hopefully a lifelong journey as a Foolish investor. First, I went to Alicia Alfiere, a senior analyst here at The Fool to ask her, when did you first start to think of yourself as an investor?
Alicia Alfiere: It is a good question, and I think this also goes to the confidence of people investing. The first time I invested was in high school. I got my dad to agree to purchase a mutual fund with me, which was a great experience. We can talk more about that later, but then when I graduated college, you have bills to pay, and it’s your first time living as an independent person. I waited a while to invest. I feel like I didn’t really give myself the title of investor until many years later when I was in my 30s, and I really started investing on a more consistent basis.
Mary Long: Let’s focus on high school. Many questions that come from this. You said you convinced your dad to buy a mutual fund with you. What had you found prior to that persuasive argument that you presented to your dad, what was it that you saw found, learned about that made you go, oh, I don’t want a puppy, I want a mutual fund.
Alicia Alfiere: Well, and it’s funny you bring up a puppy, but so I’ll start from the beginning.
Mary Long: Please.
Alicia Alfiere: My family had never been much into investing. They thought of it almost as gambling. There was a lot of discomfort in my family with investing. I had a wonderful teacher in high school. My AP statistics and AP calculus teacher, we called him Captain Jim. I remember one day he walked into the classroom, and he said money doesn’t grow on trees, but you can grow your money. Then he started talking to us about the magic of investing and compounding. I got really interested. I got sucked in, and I did some research, and I’m dating myself here, but I’m going to do it, but this was right before Pepsi came out with Pepsi 1.
I remember, this was back when you could check stocks in the newspaper. I looked at the stock price. I said, you know what? I bet Pepsi 1 is going to be a big deal. I think this can really help Pepsi’s business, and by the way, I was a Coca-Cola drinker, I found out that Pepsi had a lot more products than just Pepsi. I said to my dad, we should buy Pepsi. He’s like, no, I’m not going to do that. Then what I did is, this is the same strategy I employed when I wanted to have a dog when I was 12 or 13. Every day, I would look at the newspaper, and I would track the stock movements and circle it and stick it on the refrigerator and annoy my dad about it. Sure enough, the stock price went up, but in talking with my high school teacher, I realized there were other options to invest that might make someone like my dad more comfortable, and those were mutual funds. Did my research to find a mutual fund that he might be comfortable with, and he gave in. We still owned that mutual fund together.
Mary Long: For senior analyst Bill Barker, a first paycheck kicked off his investing journey.
Mary Long: What inspired you to start investing? Bill Barker found a passion for the stock market through reading books, while David Meier was motivated by planning for his future. Ricky Mulvey became an investor out of necessity when he had to roll over his retirement account. Each of their journeys into investing was unique, but they all found success by learning from their experiences and being patient in their investments. As they shared their stories, it became clear that anyone can become an investor with the right mindset and dedication.
Bill Barker: For me, it’s always been the opposite mistake. It’s been holding on too long. I’ve had a lot of situations where the story has changed, the company has changed, and the management has changed, and yet I’ve held on to the position because I was attached to it, emotionally or otherwise. And I think that’s a big mistake that a lot of investors make, is not being willing to cut their losses when the story changes.
In summary, for those interested in investing but unsure of where to start, the experts recommend reading as much as possible, learning from the greats such as Warren Buffett, starting with index funds, diversifying investments, and being a dollar-cost averager. Additionally, it’s important to understand a company’s story and qualitative aspects, not just focusing on numbers, and to be willing to cut losses when the investment thesis changes. Learning from the mistakes of others, such as selling too soon or holding on too long, can also be valuable lessons for new investors.
Mary Long: Thank you all for sharing your insights and experiences. It’s clear that investing is a journey that requires patience, research, and a willingness to learn from both successes and mistakes. Whether you’re just starting out or have been investing for years, the key is to stay informed, stay diversified, and stay focused on your long-term goals. As Bill Barker mentioned, don’t be afraid of market downturns, as they can present buying opportunities for the long term. And remember, it’s never too late to start investing and working towards your financial goals. Thank you for joining us today, and happy investing!
Now, if you stayed invested throughout, you’ve done fine, even if you got started in 2000. But if you were just getting started at market highs and saw what happened and you were completely invested in one part of the stock market, then you didn’t enjoy the experience. So if you’re older and new to the market, don’t just go for what’s gone up the most in the recent past.
Mary Long: How to diversify beyond what’s gone up in the recent past? Here’s an idea from David.
Ricky Mulvey: Assuming that you’re a net saver, constantly be making investments. Here’s what I mean. My personality is such that I tend to bet big, if you will. I tend to make larger investments and fewer of them based on the research that I do. That has worked out well for me, but it can be a little volatile. But I’ve also missed out on a lot of things because I’m like, well, I don’t really have any capital right now. I don’t want to sell this. Constantly, if you see something that’s interesting, make a little investment. The story that I would give there is Lululemon. If there’s one of my biggest errors of omission, meaning I didn’t make this decision, it was not investing in Lululemon. I have a wife. I have a daughter. I have half a house full of Lululemon products that these women absolutely love. I saw it every day. I saw new things come every day. I was just like, I don’t want to sell this or I don’t want to do this. No, I should have just put a little bit of money in each one of the things that I came across because you never know. Putting a little bit of money at risk never puts your whole financial picture at risk. That’s the math, you should take risk but basically, make sure it doesn’t kill us. If you love investing and you love learning about companies, there are so many great companies out there. Don’t be afraid to put a little bit of money when you get an idea. I definitely regret not having invested in Lululemon a long time ago.
Mary Long: Those ideas can come from your regular life. They don’t have to be some niche thing.
Ricky Mulvey: No, you’re totally spot on there. They come from anywhere.
Mary Long: At the Fool, we’re in this whole investing thing for the long haul. We recommend having a holding period of 5-10 years. It can be hard to stick to that when a stock sinks, but it can also be hard to stick to that when a stock soars.
David Meier: What I would encourage everyone to do listening, especially if you’re a newer investor, even if you’ve been investing for a while, if you buy a stock, write down while you’re doing it and think about the length of time you’re expecting out of this. What is the purpose of buying this company? For me, Rocket Lab is one of those companies that I was buying earlier in 2024, but really, this is one of those stocks that I plan on holding for a really long time because it’s a whole other show, Mary, but I’m optimistic about the future of space and how it can help life on Earth. I remember we met some folks who have talked about it with us. Go check out the interview with Tom Vis of Sierra Space, but I think being able to return to a thesis, something you wrote down. The act of putting something in writing has made it a little bit easier for me to see those wonderful gains and not be tempted to say, you know what? I want to sell now and take those gains because when you have to buy and sell a stock, remember, you have to be right twice, which is a lot more difficult than being right once.
Mary Long: There are a lot of voices out there that are quick to tell you you’re behind schedule or that you’re not doing enough. Don’t listen to them. You’re right on time. If you want to start doing something, what matters is that you start and then that you keep trying.
Alicia Alfiere: You can always start slow. You can build your community. You can read everything that you want. You could start within your circle of competence. Which is a Warren Buffettism by the way, so we all have experience and knowledge based on our own lives. So you are an expert in a particular field. That could be a good place to start in terms of finding companies that you’re interested in that would allow you to stay invested in the long term because you truly understand those places. I think that could be a good place to start. Again, I think community is really important, and being able to talk to other people who are investors who have maybe been doing it longer than you and then some that are in the same space as you to be able to learn and grow from each other.
Mary Long: If you’re new to the world of investing, first off, welcome. We’re glad you’re here, and we hope you’ll keep listening to Motley Fool Money so that we may play even just a small part in your investing journey. You might also want to check out our flagship investing service, Stock Advisor. As a Stock Advisor member, you’ll get two new stock picks each month, rankings of a whole scorecard of companies and access to all episodes, not just of Motley Fool Money, but also of our premium podcast Stock Advisor Roundtable. You can become a member of Stock Advisor or learn more about the service by going to www.fool.com/signup. There will be a link in the show notes.
También, si eres un oyente recurrente, un breve aviso, al menos durante el resto de enero, solo vamos a estar publicando un programa de fin de semana. Esto nos permitirá profundizar en temas importantes, traerte más contenido de analistas como lo hicimos hoy y llevar el programa a aún más lugares de los que normalmente puedes encontrarlo. Mantente atento para más novedades al respecto, Fools.
Como siempre, las personas en el programa pueden tener interés en las acciones de las que hablan y The Motley Fool puede tener recomendaciones formales a favor o en contra, así que no compres o vendas acciones basándote únicamente en lo que escuchas. Todo el contenido de finanzas personales sigue los estándares editoriales de The Motley Fool y no está aprobado por anunciantes. The Motley Fool solo elige productos que recomendaría personalmente a amigos como tú. Soy Mary Long. Gracias por escuchar. Feliz Año Nuevo Fools. Nos vemos el lunes.
Randi Zuckerberg, ex directora de desarrollo de mercado y portavoz de Facebook y hermana del CEO de Meta Platforms Mark Zuckerberg, es miembro de la junta directiva de The Motley Fool. Alicia Alfiere tiene posiciones en Apple, Berkshire Hathaway y Lululemon Athletica. Bill Barker tiene posiciones en Apple, Berkshire Hathaway y PepsiCo. David Meier no tiene posiciones en ninguna de las acciones mencionadas. Mary Long no tiene posiciones en ninguna de las acciones mencionadas. Ricky Mulvey tiene posiciones en Lululemon Athletica, Meta Platforms, Netflix y Rocket Lab USA. The Motley Fool tiene posiciones en y recomienda Apple, Berkshire Hathaway, Lululemon Athletica, Meta Platforms y Netflix. The Motley Fool recomienda Rocket Lab USA. The Motley Fool tiene una política de divulgación.
Cómo empezar a invertir (Perspectivas de los inversores de Motley Fool) fue publicado originalmente por The Motley Fool.