10 Things I Wish I'd Known When I Started Investing
When I started investing 15 years ago, I was a little lost; I wasn't really confident in whether I was taking the right actions. If I could go back in time, here are the ten things I would have told my younger self -- starting with advice on picking great companies.
Once you've built a portfolio with enough stocks to be diversified, adding a new company may not be your best use of new money. One of my favorite (and most rewarding) investments has been Amazon (NASDAQ: AMZN). Its dominant e-commerce position and constant investments to build a strong moat have made this company a tremendous investment over the last three, five, and 10 years. But once I had a position in the company, I avoided adding money, and that was a mistake. Add to your winners.
Finding solid companies to add to your portfolio doesn't have to be that hard. The accomplished investor Peter Lynch encouraged people to buy what they know. Disney (NYSE: DIS) is an example of a Lynch-style investment that anyone can understand. For some reason, I missed having this well-known media giant in my portfolio, but my kids didn't. They've enjoyed years of market-beating returns (and bragging rights).
Source Fool.com
