Investing 101

New Investor? Getting Started?

Are you one of the many people who have read about the advantages of investing regularly in the stock market? Do you want to get started but you are not sure how to go about it? This page is designed to give you the basic steps to start right from the beginning to build a portfolio that is going to serve you year after year.

Even if you are an experienced investor, you might like to use this table as a guide to value investing and to make sure that there are no gaps in your understanding.

Quick Guide to Successful Value Investing
Step 1	Learn some of the basic principles of investing and the importance of getting started with a regular investing plan.	Read the two articles The Three Golden Rules of Investing and Behavioral Investing: How to Succeed Despite Love, Fear and Greed Even better, do as many do, download all the articles on the articles page. Then take your time and read those that interest you the most.
Step 2	Update yourself on investment approaches and the uniqueness of Warren Buffett. Start to become familiar with some of the main web sites that have comprehensive fundamental data as well as current prices and press releases.	You will see many books on Warren Buffett on our books page. I particularly recommend Buffett: The Making of an American Capitalist. Microsoft MoneyCentral and Yahoo! Finance are two examples of excellent web sites with large amounts of data in simple format.
Step 3	At this stage you are ready to build your portfolio by finding those undervalued companies with sound growth rates. It will be helpful to become familiar with the use of spreadsheets such as Excel to handle your data.	The Valuesoft Investment System will help you find great companies with consistent returns year after year. For this you will need Excel. Also you will need some way of keeping a record of your portfolio. This can be done through your on-line broker or some of the major investment sites, or by purchasing software such as Quicken.
Step 4	Keep it simple, wait for the right opportunities in the market place to buy the stocks you want at the right prices, and have fun. Let the magic of time and compound interest do it for you.	Visit a friend, read the Wit and Wisdom of Warren Buffett, look at our cartoons, and phone another company for an investor kit. Think about those who have had fewer opportunities than you and see how you can help — either personally or by supporting a cause you believe in.