Hi Dumbererr,I'm a baby in this field. Currently reading Buffet, Motley Fool's Investment Guide, and the Intelligent Investor (Graham) simultaneously.Since you are new to investing; definitely, the minimum $2,000.It is far more important to contribute regularly. If you can after sending in your $2,000 to open an account send some monthly money up this would be the best way to go. Be patient, read those books you mentioned and begin to form a system. 1. It is important before you invest that you have establish some way to value a company.2. You need to be able to locate debt on the balance sheet as well as cash which is also located on the balance sheet of the companies' financial statements.3. Find some good sources of information by checking out your local libray. They carry an archive of financial magazines as well as some heavy duty financial publications like Value Line.4. Immediately start a notebook. Take notes on any investments that you make. Before investing a dime in a company, make sure you jotted down in that notebook why you invested in that particular company and what you reasonably expect as far as returns from that company and why.5. Understand at least the basics facts that the income statement, balance sheet and cash flow statements are telling you about the companies you are investing in. 6. Continue to study as you invest; grow your knowledge along with your investments. Organize what you learn about investing and let your notebooks grow along with your investments. It will be fun to look back on your beginning notes 20 years from now.7. Learn the difference between a falling stock price due to degrading company fundamentals and a falling stock price due to the general market going down.8. Don't borrow to invest; don't go on margin9. Never invest so much you cannot sleep at night. If you have invested wisely and slowly your investments will begin to grow faster than your monthly allotment to investing. Your portfolio will grow because the stocks you bought our appreciating in value not because you are adding more monthly money to your investments.10. Don't invest money you will need in the short-term. In fact, ideally, you want to invest only the money you will never miss till your retire.11. Don't worry about mistakes, if you are investing slowly through monthly contributions and diversifying wisely as you go, a few mistakes will not harm your portfolio.12. Don't give up. Many people give up long before they have a chance to learn how to invest properly and benefit from the rewards of an appreciating portfolio.13. Read these articles - The Motley Fool has provided many good articles on how to value a companyInventory Ins and Outs by LouAnn Lofton TMF Bling – March 20, 2003http://www.fool.com/news/commentary/2003/commentary030320lal.htmThe Inventory Story by TMF Orangeblood Rex Moore – July 15, 2002http://www.fool.com/news/foth/2002/foth020715.htmInvestigating Inventory by Rex Moore TMF Orangeblood – July 8, 2002http://www.fool.com/news/foth/2002/foth020708.htmIndecent Inventory Exposure by Mike Trigg TMF Tonto – March 14, 2001http://www.fool.com/portfolios/rulemaker/2001/rulemaker010314.htm?source=EDNWFHEBITAhttp://www.fool.com/news/indepth/telecom/content/ebitdalimits.htmThe Value of Cash flow By Vince Hanks – June 8, 2000http://www.fool.com/dripport/2000/dripport000608.htmLucent cash flow and calculating Lucent cash flowhttp://www.fool.com/news/foth/2000/foth001219.htmhttp://www.fool.com/news/foth/2000/foth001128.htmThe Motley Fool on valuationIntroduction to valuationhttp://www.fool.com/School/IntroductionToValuation.htmEarnings valuationhttp://www.fool.com/School/EarningsBasedValuations.htmSales valuationhttp://www.fool.com/School/RevenueBasedValuations.htmCash flow valuationshttp://www.fool.com/School/CashFlowBasedValuations.htmEquity-based valuationshttp://www.fool.com/School/EquityBasedValuations.htmYield-based valuationshttp://www.fool.com/School/YieldBasedValuations.htmMember-based valuationshttp://www.fool.com/School/MemberBasedValuations.htmThe following series was written by- Randy Befumo TMF TemplrHow to read a balance sheethttp://www.fool.com/school/valuation/howtoreadabalancesheet.htmCurrent Assetshttp://www.fool.com/School/Valuation/CurrentAssets.htmCurrent liabilitieshttp://www.fool.com/School/Valuation/CurrentLiabilities.htmDebt and equityhttp://www.fool.com/School/Valuation/DebtAndEquity.htmCurrent and Quick ratiohttp://www.fool.com/School/Valuation/CurrentAndQuickRatio.htmWorking Capitalhttp://www.fool.com/School/Valuation/WorkingCapital.htmPrice to book - DSO and Turnshttp://www.fool.com/School/Valuation/PriceBookDSOAndTurns.htmBeware the bloated balance sheetBy Bill Mann TMF Otter - August 16, 2000http://www.fool.com/news/foth/2000/foth000816.htmCurrent assets on the balance sheet – Our likes and dislikesBy Phil Weiss TMF Grape – June 27, 2000http://www.fool.com/portfolios/rulemaker/2000/rulemaker000627.htmThe Many Faces of Debt By Phil Weiss TMF Grape – August 4, 1999http://www.fool.com/portfolios/RuleMaker/1999/RuleMaker990804.htmBeware of Inflated earningsBy Richard McCaffery TMF Gibson – August 17, 2000http://www.fool.com/news/foth/2000/foth000817.htmStatement of Cash FlowsVince Hanks – June 1, 2000http://www.fool.com/dripport/2000/dripport000601.htmSeries of articles by Vince Hanks 1-12Intro to SEC forms By Vince Hanks (TMF Elwood) Jan 6, 2000Back to basics Part 1http://www.fool.com/dripport/2000/dripport000106.htmConcepts and Definitions by Vince HanksBack to Basics Part 2http://www.fool.com/dripport/2000/dripport000113.htmThe Balance sheet by Vince HanksBack to Basics Part 3http://www.fool.com/dripport/2000/dripport000120.htmNon-Current Assets by Vince HanksBack to the Basics Part 4http://www.fool.com/dripport/2000/dripport000127.htmCurrent Liabilities Explained by Vince Hanks – Feb 3, 2000Back to Basics Part 5 http://www.fool.com/dripport/2000/dripport000203.htmUnderstanding Non-Current Liabilities by Vince Hanks – Feb 10, 2000Back to Basics Part 6http://www.fool.com/dripport/2000/dripport000210.htmFinishing the Balance Sheet by Vince Hanks – Feb 17, 2000Back to Basics Part 7http://www.fool.com/dripport/2000/dripport000217.htmFun With Numbers by Vince Hanks – Feb 24, 2000Back to Basics Part 8http://www.fool.com/dripport/2000/dripport000224.htmBalance Sheet Finale by Vince Hanks March 2, 2000Back to Basics Part 9http://www.fool.com/dripport/2000/dripport000302.htmIntroducing the Income Statement by Vince Hanks March 16, 2000Back to Basics Part 10http://www.fool.com/dripport/2000/dripport000316.htmIncome Statement demystified by Vince hanks – April 6, 2000Back to Basics Part 11http://www.fool.com/dripport/2000/dripport000406.htmThe Cost of Doing Business by Vince Hanks – April 13, 2000Back to Basics Part 12http://www.fool.com/dripport/2000/dripport000413.htmIncome Statement Odds and Ends by Vince Hanks April 20, 2000Back to Basics Part 13http://www.fool.com/dripport/2000/dripport000420.htmToday's Buzzword EPS by Vince Hanks April 27, 2000Back to Basic Part 14http://www.fool.com/dripport/2000/dripport000427.htmFinding Financial Information by Matt Richey TMF Matt July 14, 1999http://www.fool.com/dripport/2000/dripport000427.htmCash Flow Headaches by Richard McCaffery TMF Gibson April 10, 2000http://www.fool.com/news/2000/foth000410.htmThe Statement of Cash Flows by Matt Richey TMF Verve – Aug 23, 1999 http://www.fool.com/portfolios/rulemaker/1999/rulemaker990823.htmCapital Assets – What are they Really? By Roy Lewis TMF Taxes http://www.fool.com/school/taxes/1999/taxes990507.htmDollar Machine Part 1 by Randy Befumo – June 20, 2000http://www.fool.com/news/2000/foth000620.htmDollar Machine Part 2http://www.fool.com/EveningNews/1997/EveningNews970912.htm#fothDollar Machine Part 3http://www.fool.com/EveningNews/1997/EveningNews970915.htm#fothDon't Forget Debt by Whitney Tilson Oct 16, 2001http://www.fool.com/news/foth/2001/foth011016.htmDebt is not always Bad – Brian Graney TMF Panic April 23, 2001http://www.fool.com/news/foth/2001/foth010423.htmDebt; The Good, The Bad and The Ugly- Phil Weiss TMF GrapePart 1 Aug 31, 1999http://www.fool.com/portfolios/rulemaker/1999/rulemaker990831.htmPart 2 Debt; The Good, The Bad & The Ugly -http://www.fool.com/portfolios/rulemaker/1999/rulemaker990901.htmReturn on Equity a Definitionhttp://www.fool.com/school/returnonequity/returnonequitypartonedefinition.htmReturn on Equity – profit marginhttp://www.fool.com/School/ReturnOnEquity/ReturnOnEquityPartTwoProfitMargin.htmReturn on Equity – Asset Managemenethttp://www.fool.com/School/ReturnOnEquity/ReturnOnEquityPartThreeAssetManagement.htmReturn On Equity Leveragehttp://www.fool.com/School/ReturnOnEquity/ReturnOnEquityPartFourLeverage.htmReturn on Equity – An examplehttp://www.fool.com/School/ReturnOnEquity/ReturnOnEquityPartFiveExample.htmA Look at ROIC - introductionhttp://www.fool.com/school/roic/roic.htmA Look at Roic – Better than ROE by Dale Wettlaufer TMF Raleghhttp://www.fool.com/School/roic/roic01.htmA Look at ROIC An example by TMF Raleghhttp://www.fool.com/School/roic/roic02.htmA Look at ROIC True Performance TMF Ralegh http://www.fool.com/School/roic/roic03.htmA Look at Roic – A declining ROIC TMF Raleghhttp://www.fool.com/School/roic/roic04.htmA Look at ROIC – Equity isn't free by TMF Raleghhttp://www.fool.com/School/roic/roic05.htmA Look at ROIC – Cash Role by Tmf Ralgh Dale Wettlauferhttp://www.fool.com/School/roic/roic06.htmSecurity Analysis – Introduction by Randy Befumo TMF Templrhttp://www.fool.com/School/SecurityAnalysis.htmSecurity Analysis – A crazy lil thing called stock by Randy befumo http://www.fool.com/School/SecurityAnalysis01.htmSecurity Analysis – Valuation The price paid to the Cash Createdhttp://www.fool.com/School/SecurityAnalysis02.htmSecurity Analysis – Quality the Measure of Excellencehttp://www.fool.com/School/SecurityAnalysis03.htmSecurity Analysis – Depth of Knowledge: The Circle of Competencehttp://www.fool.com/School/SecurityAnalysis04.htmSecurity Analysis – Time the Ultimate Arbiter of Returnshttp://www.fool.com/School/SecurityAnalysis05.htmFinding Information by Randy Befumohttp://www.fool.com/School/SecurityAnalysisFindingInfo.htmThinking of ROA by Paul Lawson June 21, 1999http://www.fool.com/EveningNews/foth/1999/foth990621.htmThe Uselessness of PSR by Paul Larson TMF Parlay Aug 1, 2000http://www.fool.com/research/2000/foolsden000801.htmP/E Is not a Magic Number Zeke Ashton TMF CentaurPart 1 March 23, 2000http://www.fool.com/research/2000/features000323.htmP/E Is not a Magic Number Part 2 TMF Centaur March 30, 20000http://www.fool.com/research/2000/features000330.htmCalculating Cash Flow Ratios Phil Weiss TMF Grape July 7, 2000http://www.fool.com/research/2000/features000707.htmDebt Beyond the Balance Sheet by Richard Mccaffery May 2, 2002 TMF Gibsonhttp://www.fool.com/news/2000/foth000502.htmBeta http://www.fool.com/FoolFAQ/foolfaq0045.htmDividend Discount Formula – John Del Vecchio TMF Fuz http://www.fool.com/research/2000/features000406.htmCash Flow and the Federal Reserve by TMF Otter Bill Mannhttp://www.fool.com/portfolios/rulemaker/2000/rulemaker000517.htmPEGulatorhttp://www.fool.com/pegulator/pegulator.htmReturn on (Marginal) Invested Capital by Bob Fredeen (TMF Bobdog)http://www.fool.com/research/2000/features001019.htm14. If you do not understand them thoroughly ask someone from the boards to help you with what is not clear.tom
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Ma