Aryan Patel

9/7/20

Philosophy Paper

Auwerda

Jim Cramer says for young investors, who are trying to take an active hand in managing

their money, the first step in achieving financial freedom is to invest (Cramer). It’s the

only way to create a life that isn’t completely dependent on a paycheck. The good news

about being a young investor is that they have time on their side. Cramer has found that

too many people begin saving and investing late in life, which could limit the risk one

can take. Cramer has 3 tipes. His first tip is invest your savings. His second tip is take

risks if you are young. His third tip is it's never too early to save for retirement.

Suze Orman says that you never wanna put all your money into one stock as a

beginner when you don't have a lot to invest, because if that 1 stock goes down, there

goes all your savings (Orman). But if you invest in different stocks and 1 is down but the

other 2 are up then you are still up on money. A phrase for that is “Don't pull all your

eggs in one basket. Her second tip is dollar cost averaging is the key to success. Her

last tip is the sooner you start investing the better it is. Cramer had the same advice for

starting early. Suze says time is the most powerful ingredient for investing because if

you invest at the wrong time you can be in a world of hurt.

Dave’s investing philosophy is to get out of debt and save up a fully funded

emergency fund. Invest 15% of your income in tax-favored retirement accounts. He

says Invest in good growth stock and mutual funds. He stresses to keep a long-term

perspective, and be aware of your fees. If you are a beginner it is important to start with

a financial advisor.

Warren Buffet is the most notorious man when it comes to investing. His

background is incredible and his journey of how he got to where he is now is amazing.

Buffets says you never want to follow the day to day fluctuations of the stock market

(Buffet). The only reason you should keep an eye on the stock market is if you want to

sell at a certain price point. You don’t want to worry or stress about the value of the

stocks, because that will put you in a world of hurt. He also says you don’t want to worry

about the general economy. You cannot predict the stock market, so there is no point in

predicting the economy. His biggest tip is when you are buying stock think of it as you’re

buying the business not the stock. You have to know what your stock is, you can’t just

look at its price and want to buy it. So lesson of the day, treat a stock purchase as if you

were buying the entire business. Another big tip is to manage a portfolio of the business

that you are invested in. It is easy to forget sometimes of what stocks you are invested

in, especially when you have multiple and you can easily forget. So making a portfolio is

a good way of keeping all your investments organized so you know your buying price

and you can set a price of what you would like to sell it at.

After hearing from all these different points of views, I have learned a lot and I will

use that knowledge to hopefully bring me success if I ever venture into the stock

market. The biggest person that impacted me and gave me motivation is Warren Buffet.