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No. of Recommendations: 3
Thanks for the advice gentleman. I have read the The Intelligent Investor, including the appendix. I've read that book and quite a few others, such as Buffetology, the motley fool investment guide, "how to pick stocks like warren buffett", and some of the peter lynch books. I have the original Security Analysis but have yet to read much, as it is such a lengthy book.. Now I'm reading Common Stocks, Uncommon profits. Also I paper traded using the Fool portfolio web tool for over a year...

I did ALL that, in addition to reading for over a year, before I finally made my very first stock purchase.

$1400 worth of Winnebago stock (WGO). Every red cent of the Roth I opened for my wife went into that lone stock today. I really don't feel too worried about it. Everything I have read has pointed me to this strategy of concentration. Next week I have another 1400 I'm going to plunk into a Roth for myself, and plan to buy just one stock in that as well.

Also, I have 10k in my 401k, all in index funds. So if you think about it, I'd have 10k in index funds and 2800 in individual stocks, which is exactly what the Fool says with the "index plus a few" strategy.

I'm 27. I love reading financial statements, and actually have become quite good at deciphering them. I feel that all of my preparation gives me a shot at beating straight index fund investing. I also find mutual funds insanely boring. I really like researching companies. Perhaps one day I will switch careers from Computer programming and move to the financial industry.

There is a very real possibility that a stock like WGO could double in one or two years, and in my opinion a much smaller chance that they will drop by a large amount. I'm just bored with index funds, and I think I can do better in the long run.

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