Tag Archives: Seeking Alpha

Where Can You Learn from The Experts?

If you’re like me then you are new to the investing you end up being on “intake”. Where you try to absorb as much information as possible. But from where? That’s the key question. I’ve been searching for different groups and forums to try to find someplace where I can find useful information. Unfortunately, they are very few reliable sources of good information.
I’ve joined a couple of groups on Facebook but the most discussion thread I see there are “I have $XXX to invest. Where should I invest it?” Wow! And then the replied come back with almost every conceivable stock ticker. But not single one with an explanation of what it was about that stock that made them pick it. Dumb!
And following certain “investors” on Twitter is no better. I’m starting to limit my follows to actual financial news outlets (i.e. Seeking Alpha. Marker Watch, The Street, etc). Most of the individual people seem to on Twitter just to sell you something. I know that there are no free lunches but you can’t even get the cutlery & place setting without paying for it. When you ask them about how they came about selecting a specific stock or series of stocks they have recommended, what you get back is “Buy my book”. Now, I’m a big proponent of buying books to learn from but I want to be able to vet the author and insure that they’re not just some snake oil salesman. That they really know what they’re talking about.
You can learn from reading:
Morningstar
Seeking Alpha

You can buy books from there guys:
Warren Buffett
Phil Town

And there are some good videos on YouTube that go through many of the fundamentals:
Learn To Invest

Just to name a few. One source of information that I am currently reviewing in order to subscribe is American Association of Individual Investors. The service sounds exclusive but it’s not. My initial review found that it’s a non-profit financial education company, that manages a real-money stock portfolio to show its members how to capitalize on the most promising academic research. It’s more on-hand than theory. They offer a free guide to profitable retirement planning. I’m still looking into them but it seems to be looking good and I am seriously going to consider subscribing to their service.

One of the key factors for me to follow someone on Twitter or to subscribe to their service or Youtube channel is that they don’t just throw a stock at you, they give you details of why and what details they were considering. Or they’re actually walking you through the calculations and analysis that they went through. You’re not left on your own. Jim Cramer is another good one to follow on YouTube; and YouTube allows you to replay a portion or the whole segment if you weren’t able to keep up with him initially.


Where to start

If you are like me you are new to investing and just starting out. Where do you start? A great question and I was lucky to know someone who was a seasoned investor and able to nudge me along in the right direction. The first thing my friend suggested was that I develop an investment strategy. What did I want to accomplish and what was the timeframe I was working with.

The first question was fairly easy – I wanted to replace my current wages with the passive income. The second one was already answered for me – 5 years. I didn’t have too many work years left for me. Father Time tends to catch up with all of us. Another factor in my strategy was that I wanted to avoid high-risk investments. I couldn’t eliminate ALL risks but I could avoid the high ones that have devastating financial results.

The other thing that I did was to learn whatever I could about investing and the different aspects of investing. I needed to learn which investing method would help me reach my goals. To this end I searched for online communities where I could just lurk and learn about investing. One of the ones I found was Investing For Beginners on Facebook. Although every group is going to have their share of annoying posters and useless posts & comments, you can still find some useful information.

I learned that Day Trading was not for me. Too risky. Proponents of Day Trading will tell you that you have to take big risks for the big payoffs. But to me that is too much like gambling at the casinos and I don’t do that. Value investing is not going to get me to where I want to be. Yes, I may win big but I also can lose all of my investment, which I may not have enough time to start from scratch again and recover. That left me with Dividend Investing.

Dividend Investing is where you invest in stocks that pay high & consistent dividends. Well, that was surely the way to go for me. Again, I spoke with my friend. He steered me to 2 online services that would help me determine which stocks to potentially invest in. They were Seeking Alpha and Finviz. So, I started to develop my detailed strategy of how I was going to invest my money.

  1. The primary step was to set aside 5% of my income toward investing.
  2. I then searched for stocks to invest in. My criteria was to select those that paid better than 5% and that had continuous and consistent dividend growth.
  3. I also wanted to remain within the REIT sector.

This was a good start.