The Motley Fool Investment Guide for Teens

I'm 19 and want to start investing. I have about $2000...not much, but it's all I have. I don't think putting it in an index fund and getting 10% return every year is anything great because $200/year isn't really what I'm looking for. I Read "Fooled by Randomness" and half of "The intelligent investor" (it was mostly way over my head). I'm also going to read some of the morningstar.com and investopedia tutorials. Do you think this book is worth it?

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I'm 19 and want to start investing. I have about $2000...not much, but it's all I have.

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And, every year you'll presumably save a bit and be able to add to that amount.

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I don't think putting it in an index fund and getting 10% return every year is anything great because $200/year isn't really what I'm looking for.

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The magic of the stock market is in compounded earnings. It is not necessarily a get rich quick scheme, although it can be for those willing to put the time in to learn and to make the market work for you, and put in the work necessary to realize its potential.

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Do you think this book is worth it?

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Anything by the Motley Fool is worth reading.

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The reality is that 10% per year, historically, is a good return. You should definitely study investing and it's definitely possible to make more. But there is a huge amount of risk, no matter how good you are at picking stocks.

The problem, for most people, is that investing has three aspects. All of which suck.

First, you need to work and study hard so that you can get a good job or start a successful business. This sucks because who wants to work and study hard. If you are a lawyer, you need to understand law, as well as math and finance/economics.

Second, you need to save a lot of money to invest. I put $1000 into ODP one time and made 60%. But that was only $600 big deal. But if I had $1 million dollars, I would have earned 600K. So bottom line is it takes money to make money.
But this sucks because who wants to save money when they could be spending it.

Third, you need to invest in something, stocks, real estate, a business, and NOT lose your ass.

In general, I have found that most people I run into are not willing to work hard enough or study hard enough, to achieve financial success.

Unless you will inherit money from millionaire parents, for the vast majority of people, getting a large amount of money will require hard work, patience, discipline, and study.

Read and study everything you can about stocks. Then decide for yourself what makes sense. Every book you read will teach you a little more. And you can compare the advice they give.

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I would strongly recommend Learn to Earn by Peter Lynch, A beginner's guide to basics of investing and business.

Lynch was the former manager of the Fidelity Magellan fund and earned huge returns. He was supposedly one of the most successful stock investors around.

Interestingly, he consistently recommends that everyone buy real estate first. Kind of ironic that one of the most successful stock investors in modern history is saying buy real estate.

But that's what I like about his book. I think that is an honest and sensible recommendation.

Anyway, an easy must read for newbies.

You should hold onto Intelligent Investor and go back to it in a year or two, after you have read more basic stuff.

[Python49]

I'm pretty much in your situation and it seems as though there is alot of knowledge that has to be obtained in order to be really successful. But that's with anything in life. Good thing we are starting early.

[GeorgeF]

At your age earned not unearned income is where the action is. Find out what is preventing you from earning the big bucks and fix it. I think self help books might be a better investment than an investment guide.

stick to vanguard.com mutual funds until you have $50k and then reconsider.

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At your age earned not unearned income is where the action is. Find out what is preventing you from earning the big bucks and fix it. I think self help books might be a better investment than an investment guide.

stick to vanguard.com mutual funds until you have $50k and then reconsider.

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A great book for college students is The Automatic Millionaire by David Bach.

I definately agree at 19, he should be looking to maximize earned income.

50K however, is too high a default point before diversifying out of index funds.

[SteveKeys]

I am 18 and just entered college, I have $8k at my fingertips right now and am currently reading books after taking the morningstar tutorial classes. I plan on asking my brother for help since this is going to be part of his major, But what do you guys see happening with these stocks short term (4 months-year):

MRH - Montpelier Re Holdings (Property Specialty, Property Catastrophe, and Other Specialty.)

VSTY - Varsity Group Inc (operates as an online retailer of textbooks and educational materials)

YZC - Yanzhou Coal Mining Co (engages in underground mining, preparation, and sale of coal) *just found new high grade depoist of zinc-silver

I read investing for dummies last yr and I am up 1000% this yr.

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But what do you guys see happening with these stocks short term (4 months-year):

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Hands keys the crystal ball! [img]/images/graemlins/smile.gif[/img]