Coffee Talk
Who am I?
I'm an older user here. And while there are people far wiser than myself, I have seen a fair bit during my life, and I have done quite well for myself during my 30+ years of investing. I am seasoned, but not an expert. This post is not meant to sway you to invest in a particular way. Please be skeptical and do your own research.
The why?
I see alot of advice posted here on Blossom, mostly done in ways that I find suspicious or unfriendly. If you're just starting your journey, I thought I'd give you my take (if not wise, then well-intentioned), while we have our coffees together.
(1) You'll hear lots of voices and see lots of posts here on Blossom. I urge you to follow your "real-life" instincts and search out people who are well-intentioned, thoughtful, and most importantly, have had success in their financial lives. If the loudest person screaming advice at you has yet to achieve the thing you are striving for, I would exercise extreme caution. You are you friends. You are your environment. I choose to be surrounded by success. You have one lifetime to live, and one chance to invest your money. Don't let someone thirsting for social media fame F&$K it up for you.
(2) Forecast your life. Use a spreadsheet. Your life is unique. Cost of living? How much do you earn in your discipline? How much are you starting with? Your current age and what is your theoretical investment balance each year? This exercise is tedious, time-consuming, and also a lifelong endeavor. You are unique, and no one can do this for you. It changes each year. Sometimes every week. But without it, you won't know how aggressive you need to be in your investing life.
(3) Start as early as you can. Start now. Don't stop. Even if you've achieved FIRE. The market givi'eth, and it is ruthless in the way it takes. I lost 66% of my protfolio value in 2008. The market doesn't care about you or when you retire. But the earlier you start, and the more tenacious you are in your finances, the more forgiving the math of investing success is.
(4) Be the least aggressive you can (ie assume the least risk) to achieve your goals. Forecasting is an imprecise exercise. But your life deserves a financial plan, which requires forecasting. You need to know where you are starting, and what % return is required to get to where your goal is. What is the magic number? Is it realistic? You might have read that forecasting returns is "silly" or not important. Planning your life without making assumptions is nonsense. Full stop. The assumption that you will have a stable income is also a forecast. One gust of wind, and the butterfly's destiny is altered. Forecast. Forecast. Forecast. Do it again and again, and always be skeptical of the advice that you choose to live your life by.
(5) Chase good companies. One of earliest financial lessons I learned from my parents was the "why" of why some companies are "worth" more over time. When I have cash on-hand, and wonder whether something is investable, I make sure to always take a pause and remind myself of why companies are "worth more" over time. Take time and define it for yourself. Articulate it over and over to yourself and you'll find that their are many stocks which are uninvestable today. If you disagree, I wish you the best of success. My approach is old-school and has worked for me and my network.
You are your friends. You are your environment. Be surrounded by what you want to be.
Good luck out there Blossom.
