Monday, August 5, 2013

The 10 Best Things I Learned About Investing This Summer

It's been a fantastic summer as an intern here at The Motley Fool. In many ways, I feel as if I was paid to learn, and this is one of the best environments to do just that. I have barely scratched the surface of an investing education, but as with many things in life, learning the fundamentals first leads to the greatest rewards. Here are the 10 best things I learned about investing this summer:

1. First thing to look for: a firm's market opportunity. It seems obvious, but if you're looking for growth, you'd better make sure there's room to grow.

2. As an investor, never bet against convenience. Netflix is a great company, but the Qwikster fiasco failed because it altered the company's value proposition: aggregating content in one location. For consumers, one click is always better than two.

3. There's no substitute for active reading and learning (pen in hand, and choosing primary sources over secondary). Charlie Munger once said Warren Buffett accomplished his outstanding investment performance by "sitting on his ass and reading."  (more)
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