Simple Investing

Now that we have chosen to forgo a home purchase, I’m looking for investments that will hopefully keep our down payment from losing value.

Lately, I have been discussing strategies with a very good, down to earth, friend who is incredibly intelligent in many things, including investing. Much of what Ricci touches is golden. He seems to always be prepared and ready for the next thing. This ability carries over into his investing.

I have to admit I am not grasping as much as I would like. So I’m surfing a number of financial websites to expand the mind, but quickly coming to the conclusion that much of the content is just daily noise and probably counterproductive. It’s actually making it more difficult. I’m also reading a number of books he loaned me, which have been somewhat helpful.

Then I saw this article on CNNMoney…

Know just enough to succeed

It’s a quick review of a little book entitled “The Only Investment Guide You’ll Ever Need“. The author, Andrew Tobias, has updated and revised this little classic, which has gone through 6 editions, since the first edition in the 70’s.

Okay, you have my attention. Having been on the wrong end of an investment, I like the idea of leaning more to the K.I.S.S. philosophy regarding investing. Playing against the big boys in a game where I barely know the rules doesn’t sound like much fun.

Briefly, the article touches on several basic and timeless principles that, we in the modern age, have sometimes dismissed.

• Saving More (a lot of “wants” are masked as “needs”).
• Keep investment costs low (every transaction and capital gain takes away from the bottom line).
• Diversify (It’s not just a buzz word)

He had me at “saving more”. We, like much of America, are not the best savers. I’m dropping this little $5.95, (yes, he was able to get the publisher to cut the price down to under $6), investment volume into my amazon shopping cart. Looking forward to seeing how he fleshes out these principles.