Becoming an Investor
By Peter I. Huplalo
Rating – 5 stars
March 29, 2006
Sound Advice for Sane Investors
If you seek to build wealth by managing market risk,
Becoming an Investor is not a bad place to begin.
The author, Peter I. Hupalo, argues conservative investment
philosophies form the basis of any long-term wealth building strategy. It
should include the following principles:
A long-term view.
Investments you understand.
Purchase price discipline.
Strict avoidance of speculation.
Insight into a company’s
intrinsic value.
Insight into your investment
limitations.
As the investor climbs the ladder of investment
sophistication, you should add the following analytic tools to your investment
arsenal:
Insight into the Time Value of
Money.
Understanding the concepts behind
a dividend discount model.
Ratio analysis and financial
statement analysis.
Finally, Hupalo offers five great rules for investors:
Never get forced out of an
investment opportunity because of a short-term cash requirement.
Acquire adequate health
insurance.
Don’t buy what you cannot
afford.
Buy a house.
Consider your career choice.
Your earning power is a critical variable which will determine how much
money you have to invest.
Hupalo offers all would-be investors sound advice. The
only thing missing from this well-written wealth-building guide is the discipline to follow
it in both good and bad times.
That is something only the
investor can supply.
