Author Topic: How to Find an Investment Mentor?  (Read 3210 times)

bsned2

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How to Find an Investment Mentor?
« on: June 09, 2019, 02:43:40 PM »
Hi all,

OK.  I've been lurking on this board for a while, and I find it very valuable.  So thank you to all of you.

I'm 59, coming to the Value Investing game way too late.  But I hope to live many more years and I have money in the market, albeit in big dumb blue-chips like Home Depot.  So I'm trying to teach myself.  I've read many of the recommended books.  I'm starting to create my own excel spreadsheets to make calculations from quarterly/annual reports.

I'm sure I can stumble through and teach myself, but it could take me a while.  What I lack, and what I really want, is someone who knows what they are doing who can look over my shoulder and tell me what I'm doing wrong.  A retiree in my area maybe?  I'd even be willing to pay for that advice.  Not much though ha ha.

Of course what money I have is with a brokerage firm (Raymond James) and I really like my guy there.  But he's not really an investment guru, he's a manager.  And he doesn't have the time anyway.

Anybody have any advice?  I'm not in a major metro area (I live near Palm Springs) and I don't think there is any real investment club out here.

Thanks.  I'll keep plugging way regardless.


DTEJD1997

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Re: How to Find an Investment Mentor?
« Reply #1 on: June 09, 2019, 03:52:34 PM »
I would recommend reading, Reading, and then some more READING.

What/where would I read?  I would bring a laptop with me to the local library.  Get the Value Lines 1st thing.  Then go to the periodicals.  Get the WSJ, Forbes, Fortune, local business magazines and then start reading.  When you are reading a story of a company, say GE, look it up in the ValueLine.  Look at the company performance over time and where they are now, and what projections are.

Spend a couple of hours doing this.  Do it a couple/few times a week.  Do it for a few years and you'll gather quite a knowledge of companies and current trends.

I would also join different clubs on the interwebs.  This is a good place to start, but there are others.  The microcapclub and Value Investors Club are two other good websites.

When you are at home/driving/walking, listen to investing/business podcasts in the background.

Finally, perhaps the best thing of all, is the contacts that you will make and the ideas that you will trade/learn of.  If you can find some interesting insights, others will reciprocate and over time you will do well.

I have a small circle of investors that I've met on the interweb...all of them very educated, very accomplished businessmen/investors.  From time to time, I trade ideas and information with them.  Mind you, only the top ideas are traded.  That has been one of my very best ways to get information!

Good luck!

SharperDingaan

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Re: How to Find an Investment Mentor?
« Reply #2 on: June 10, 2019, 06:31:12 AM »
Might not be what you want to hear,
but it might well save you a small fortune ....

At 59, you're too old.
It will take at least 3-5 years of intense reading, the cost of at least a university/college course or two, and tuition (losses while learning); you will be approaching 64 by the time you know anything. Assuming no major 'senior moments' until 75-80; there will be maybe 10-15 years of runway at best. Is picking stocks really what you want to be doing in retirement?

Index funds, not individual stocks/bonds
Tuition/learning time is a lot shorter, and your decisions are limited to just recognizing when to enter/exit specific sectors. As every boat rises/falls with the tide; all you need do is be able to recognize when the tide is going in/out, and know what a sturdy boat looks like.

Look at starting/buying into a business, not investing.
For most retirees the issue is what are going to do with your time. For business people it is often better to buy a minority stake in an existing business, and treat it as a 'working hobby'. Typical businesses are breweries, patisseries, inn keeping, etc.; the skill-sets, work load and financial risk is spread over multiple partners, and you're in the business primarily for 'fun' versus profit maximization. The long-term pay-off is increased longevity, better health, and better quality of life - by keeping both mind/body active.

Good luck!

SD

« Last Edit: June 10, 2019, 03:15:24 PM by SharperDingaan »

bookie71

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Re: How to Find an Investment Mentor?
« Reply #3 on: June 10, 2019, 08:33:57 AM »
I would suggest that you start reading these starting with the earliest ones
https://www.berkshirehathaway.com/letters/letters.html
Always remember, Pigs get fat and hogs get slaughtered.

stahleyp

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Re: How to Find an Investment Mentor?
« Reply #4 on: June 10, 2019, 08:45:26 AM »
I agree with SD.

The vast majority of professional investors fail to the beat the index before fees (and even fewer beat it after fees and taxes). Indexing is the best way for 90%+ of people.

Most people are not successful at investing unless one has a huge passion. Even then, most of those fail. Look at how many value managers that were rock stars from 2000-2010 and now suck. I've averaged about 7% above the market over the past 10 years and I still index part of my investments. I'd like to think it was due to skill but it could just be luck.

The Raymond James guy is probably just a salesman.
Paul

bookie71

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Re: How to Find an Investment Mentor?
« Reply #5 on: June 10, 2019, 08:49:16 AM »
I disagree, you are never too old to learn.
Always remember, Pigs get fat and hogs get slaughtered.

DooDiligence

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Re: How to Find an Investment Mentor?
« Reply #6 on: June 10, 2019, 08:56:22 AM »
I disagree, you are never too old to learn.

Fully agree but in this case I'd add life cycle cash flow / portfolio management.

The OP must consider income needs / sources & plan investments / draw downs accordingly.

I'm slowly changing my risk tolerance & trying to stagger runways in buckets (today is funky mixed metaphor day...)

edit: easier said than done.

---

Kudos to the BRK Letters recommendation.

Should also examine ability to be patient vs trader mentality.
Healthcare 25.9% - CVS EW NVO // BRK.B - 23.1% // Auto's & Oil 15.0% - CLB GPC VDE

Entertainment 4.8% - DIS // Banking 9.9% - WFC // Drinkers & Smokers 4.9% - MO

%'s held @ MV 08/29/2019 minus 16.4% investable cash

i trumpet my ignorance

https://twitter.com/tunawish

KCLarkin

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Re: How to Find an Investment Mentor?
« Reply #7 on: June 10, 2019, 09:15:38 AM »
Is picking stocks really what you want to be doing in retirement?

That is the key question. It's safe to say that >90% of individual investors would be much much better of just indexing (or passive investing). If you want to take part of your portfolio and use it as a hobby, that is a different matter. Just be aware it can be a very expensive hobby.

You are also nearing the point where most people stop adding to their investment portfolio. So if you have a diversified portfolio of "dumb blue chips" like HD, one option would be to just hold onto the existing portfolio. There is no reason to believe that you, Vanguard, or Raymond James can do better than your existing portfolio.

Investing is one of those rare activities where there is very little correlation between effort and results.

rranjan

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Re: How to Find an Investment Mentor?
« Reply #8 on: June 10, 2019, 09:21:25 AM »
I disagree, you are never too old to learn.

+1

Great thing about investing is that your  knowledge compounds over time and we are not talking about 85 years old here. You have plenty of time and also if you are really curious then you can learn a lot.

Pick any simple business, it doesn't have to be great. You can pick something depending on your background.. Imagine that you inherited it. Now try to understand everything about the business. How it makes money, return on invested capital, reinvestment opportunities, quality of management and anything comes in your mind.

It may take you couple of months, but you will learn a great deal about industry as well. To understand business, you will be reading up on their competition.

Once you are done, pick a  second company. Get the ball rolling. Do all this if you are very curious and find it interesting.

Good luck!


BG2008

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Re: How to Find an Investment Mentor?
« Reply #9 on: June 10, 2019, 10:39:43 AM »
I disagree with others on this thread.  This is how I would think about your situation.  While someone who is in his late 50s may not have much to add for his wealth over time, maybe he wants to leave a bigger inheritance to his family and be able to pay for his grand kids' college education etc.  So there maybe other financial reasons over time.  Maybe the OP wants to leave some money to a charity.  After all, Warren Buffet did make 99% of his wealth after he turn 50 or something.  The power of compounding is real.   The key question is really "do you really enjoy this?"  There are also other considerations at your age where you want security of income.  So the nature of your portfolio needs to have a different mix between income and appreciation.  If your objective is to simply compound wealth and beat the younger guys, it's probably not the right mindset.  If your objective is to learn, enjoy the process, and get better, I think it is very healthy and may prevent Alzheimer/dementia etc.  People take up golf and other hobbies in retirement, but this could be very rewarding for you.  If I were OP, I would take a hard look at myself and ask "what are my skillsets and what does my rolodex look like?"

If OP has 40 years working in specialty chemicals distribution and has a network of people that can reach out, there is a very good case to make for him to contribute his time and network to help a fund or manager in return for mentoring. wink wink. Just being on this board likely puts you in rare territory.  So look at your career and look at your work contacts and think about what industry knowledge you can offer.  Look up publicly traded companies in your sector and check 13F filings.  If they are sub $1 bn companies that you know well and have opinions of in terms of profitability, long term earnings power, the ability to earn a return on capital, and the various players involved, you can create tremendous value add.  Frankly, I want more 59 year old guys/gals in my Rolodex that I can call quickly and get their views on various topics.   

You can PM me if you want and we can do a quick chat about ways we maybe able to work together.  I have to be honest and upfront that if there aren't a whole of industry knowledge or contact, it will be difficult as "time" is the most expensive COG in the investment business.  Maybe you have 40 years of experience as an administrator in a school district and you are thinking what value add can I provide.  Well, I would like someone on my Rolodex who I can call when I want to understand how a school district admin thinks about buying educational subscription services.   

Take a step back and think about this dynamic and have some fun with it.  The most important question to ask is "will you enjoy this" and please please please have the right ratio of low risk income (perhaps an oxymoron in itself) and higher risk equity exposure in your portfolio.  Our runway and risk tolerance is justifiably different.  Heck, my own risk tolerance has changed slightly since my mid 20s.