Starting With Shares. Roger Kinsky
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Название: Starting With Shares

Автор: Roger Kinsky

Издательство: John Wiley & Sons Limited

Жанр: Личные финансы

Серия:

isbn: 9780730395188

isbn:

СКАЧАТЬ href="mailto:[email protected]">[email protected]. I'll make every effort to answer all emails within a day or two of receiving them.

      You can also visit my website, rogerkinskyshares.com.au, for further discussion about shares and my books. The site features a weekly blog ‘Sharing shares’, where I discuss topical items of interest to share investors. I also offer a share mentoring and education service, where I can help you with any difficulties you may experience. Details on how to access this service are outlined on my website.

      Finally, I wish you a profitable share investing experience and I trust that this book will play a significant role in guiding you on your path to success with shares.

       Roger Kinsky

       Woollamia, NSW

       October 2021

      In this chapter, I outline what you really need to know about investing in shares so you can get started, covering market unpredictability, the relationship between risk and reward, and what you're actually investing in when you buy shares. I also highlight some of the stuff you don't really need. Are you surprised at that? You might think that the more you know about shares, the greater the profit you'll make when you invest in them. Actually, no evidence indicates that ‘more’ information is necessarily better; in fact, ‘more’ can be worse because you can get bogged down in detail and miss the important stuff. And, as I explain, some great share investing strategies are based on very simple ideas that anyone can apply.

      Before I go too much further, however, I'd like you to meet someone who you'll see a lot of through this book.

       ‘Hi! I'm Michelle. I'll be accompanying you on your journey.’

      Sorry fellas, I have nothing against the male gender but women are fast becoming a force in the financial arena. By the way, studies have shown that when it comes to share investing, women are more successful than men. I explain why in chapter 5.

      When it comes to share investing, I want you to trust yourself and not think you need to rely on others such as share investment advisors. Many people feel like ‘dunces’ when it comes to share investing — even those with a good education. This means people often rely on investment advisors or share advisors who they believe are experts in the field — and who usually charge a hefty fee for service.

      However, from my own personal experience, acquired over 50‐odd years of share investing, I have found that the results don't always justify the cost. In fact, my most disastrous share investments occurred as a result of following recommendations. Now I no longer act on advice without first putting it through the ‘grist of the mill of my own mind’ and coming to my own conclusions.

      I have written many non‐fiction books over the past 50 years, and taught many classes on subjects ranging from engineering theory to shares. When I start teaching a new class or writing a new book, I face the difficulty of determining the knowledge level of the students or readers who want to learn. If I pitch the starting point too high, those who don't have the pre‐requisite knowledge get lost at the start and have to try to catch up. But starting from behind isn't a good idea when learning a new skill or acquiring new knowledge because you have to learn the old stuff at the same time as you are trying to absorb the new.

       ‘How am I going to catch up?’

      On the other hand, if I pitch the beginning point too low, those who already know a fair bit get bored and can easily lose interest. After all, if someone is going to learn something new they need to be interested.

      If you already know a fair bit about shares, you may want to skim over some of the content in the early chapters. But there's an inherent danger in this that I now discuss.

       Types of knowledge

      Knowledge comes in several types. One type is the knowledge you know you don't know. For example, you may be aware that you don't know much about servicing or repairing a car. So when your car needs servicing or has some problem, you take it to a mechanic who has the required knowledge and can service or repair your car. But there may also be a whole mountain of knowledge out there that you don't know you don't know. This is called blissful ignorance, because you don't worry about things you don't know about. For example, your car could have a fault that you're not aware of and so you keep driving the car until the fault gets worse. One day you notice the problem and take your car to your mechanic. The mechanic may say something like, ‘Well, if you had brought the car in to me earlier I could have fixed the problem easily and cheaply, but now it's a big and expensive fix’. The reason you didn't bring the car in earlier was because you weren't aware of the problem.

      When it comes to shares, you may be aware of your lack of knowledge in certain areas but you might also have a lack of knowledge in areas you're not even aware of and that might cause problems.