Handy tips for first-time investors

Handy tips for first-time investors
News from Stuff.co.nz:

RICHARD MEADOWS

Making your first foray into the investment game is tough going. It’s unknown territory and can be scary for those used to the safety of the bank.

But everyone has to start somewhere. For legendary investor Warren Buffett, it was at the tender age of 11, buying three shares in a company with his sister.

The Oracle of Omaha’s first stock trading was not wildly fruitful, but lessons learned in the early venture prepared him for a phenomenally successful investment career.

You might want to take a dabble too- but are you ready?

Let’s run through some preliminaries: First, before you invest your money anywhere else, get rid of any debts weighing you down.

”If someone comes in with $ 10,000 and a mortgage, I’d tend to advise them to pay off debt”, says Susanna Stuart, financial adviser at Stuart & Carlyon.

Second, make sure you’re milking Kiwisaver for all it’s worth. A $ 520 tax credit is nothing to be sneezed at, and any employer-matched returns on contributions are nigh unbeatable.

Third- Stuart recommends building a safety cushion that would cover two months’ expenses. You don’t want every cent tied up in investments when an emergency looms.

Made it through that lot? Anything left over is ripe for investment.

But it’s likely to be a prett…………… continues on Stuff.co.nz

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How Keynes Changed His Investment Philosophy And Died Weathly
News from Ninemsn:

 By Mark Skousen, Investment U Research

“When the facts change, I change my mind. What do you do, sir?”

– John Maynard Keynes

As longtime subscribers and readers of my books know, I’m no fan of John Maynard Keynes as an academic economist. His legacy is the welfare state, trillion-dollar unfunded liabilities and uncontrolled deficit spending. (See chapter 13, The Keynes Mutiny: Capitalism Faces Its Greatest Challenge of my book The Making of Modern Economics.)

But when it comes to Keynes the investor, it’s a different story, and the man deserves credit for being an outstanding stock picker during a period of war, uncertainty and depression…

According to a study published last month by two U.K. economists, David Chambers and Elroy Dimson, Keynes was a “star investor” who managed to gain 8% annualized returns from 1924 until he died at the age of 63 in 1946. And this was at a time when there was very little inflation and, in fact, much deflation.

What can we learn from this Cambridge wizard of finance? Here are three key lessons:

The Bottom-Up Approach

First, he became a much better investor by switching from being a top-down strategic macro manager and a technical momentum player to being a bottom-up stock picker and fundamentally contrarian value investor.

In the Roaring Twenties, he boa…………… continues on Ninemsn

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