| A lot of people who are learning how to invest | | | | 4. Look for Strong Income: Every company will |
| money wonder how they can learn all they need to | | | | benefit from having high profits, low debt and lots of |
| know to do well at it. These steps should set you on | | | | cash. You can't go wrong there. If one company |
| your way to learning how to invest for your future. | | | | spends $1 million to make the same $15 widget as a |
| 1. Set Up a Brokerage Account: Setting up an | | | | company that spends $4 million to make the same |
| account often includes sending in a check and proving | | | | widget, you will want to buy the company that |
| your identity. Once you're signed up, you can keep | | | | spends $1 million. |
| track of your investments in one place and also use | | | | 5. Seek Insider Stock Ownership: When I research a |
| their research tools. Then, it's time to start | | | | stock, I look for insiders to be invested in the |
| researching. | | | | company. I do this for two main reasons. 1) I figure |
| 2. Look Around You for Investment Ideas: You can | | | | they want to make money and will work hard on the |
| discover ideas from products you use every day or | | | | company if they are invested in it. 2) They have the |
| from the mall. A class of schoolchildren liked a | | | | inside knowledge to know if this product/company |
| particular pen, researched the company, found the | | | | will do well. I'd say this is an important aspect - like |
| company favorable, and then bought stock in the | | | | icing on the cake - rather than one of the main |
| company with their play money as part of a school | | | | reasons to buy into a company. |
| project. The stock increased, and the children "made" | | | | 6. Seek Company Buybacks: If a company is buying |
| money. The children discovered a good product, and | | | | back its own shares, then that means fewer stocks |
| you can do the same. | | | | in circulation. The benefit of that is a higher earnings |
| 3. Research: Before you buy into any investment, do | | | | per share if the company's earnings increase or |
| research. One of the world's greatest investors, | | | | remain consistent. |
| Warren Buffet, says you should examine a company | | | | These tips should help you get you started on your |
| you want to invest in as carefully as you would if | | | | research. Once you have the tools to research, you'll |
| you were going to buy the entire company. Read on | | | | have the freedom to make your own decisions |
| to learn of specific items to research. | | | | instead of relying on possibly bad advice. |