In my Stock Investment Class (Value Investing Academy), the question of

“Where do i even begin?” will inevitably pop out of the participants’ mouth. I think that that is a very valid question. While I had shared a couple of ways to get started, I will always point back to the fact that we fist need to define our circle of competence, i.e. we should clearly define what we understand from what we don’t. In fact, whenever a fresh piece of stock idea, i would ask us to first categorize it into one of the 3 categories:

Category 1: Businesses that I understand: This means you know how these businesses generate profit and know what are the key costs and risks involved.

Category 2: Businesses that I do not understand but am interested to study in: You do not understand these businesses but the idea of reading more and studying more excites you.

Category 3: Businesses that I do not understand and have no interest: Yawn… Forget about these businesses and get back to your life. It is my personal take of course, but if you have no interest, it is going to take much more effort to try and understand a business that you are NOT interested in.

So now that we are clear that we do not go about munching up every single stock investment idea, I would like to suggest a list that we can look into to look for great stock ideas ~ check out the list below and see some investment ideas:

Yes! It is the Forbes’ list of the billionaires a.k.a Richest People in the world.

I would suggest that you take a good study into the “Source” of their wealth.

E.g. Bill Gates = Mircosoft

Warren Buffett = Berkshire Hataway

Bernard Arnault = LVMH

Larry Ellison = Oracle

See the whole list here: http://www.forbes.com/billionaires/

Hey, aren’t these businesses listed in the stock exchange? And if these businesses can make these men so rich, perhaps they are worth looking into.

I will ask of you to study deeper and especially look at men who have been in the list for years as this proof the strength and steadiness of their wealth. Once in a while, a young billionaire who created a social network business may pop up and that should catch our attention as well. But remember, in investments, one key thing is “Track Records, Track Records, Track Records!”

So while Value Investing as a method may cause me to miss out of some of the greatest booming businesses because these young startups barely has track records, Value  Investing will save me from lots of heartbreaks (since most startups fail within 5 years). It is a sure and steady way to become wealthy.

So if you are a stock investor, have fun exploring into the Billionaires’ list and check out some of the investment ideas that, who knows, may one day place you on that list as well. 🙂

Come join us for a free workshop to learn how to pick good stocks from the market:

 

To your dreams,

Mind Kinesis Research Team