Advice needed for a young person

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fm3040
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Joined: Tue Apr 07, 2015 10:07 pm

Advice needed for a young person

Post by fm3040 » Wed Jan 09, 2019 6:44 pm

A friend's young son thinks that he can make a lot of money by trading stocks. What would be a good eye opener for him?
Need a recommendation of books that can drive home the point to a young person that indexing is the way to go.

bloom2708
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Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Advice needed for a young person

Post by bloom2708 » Thu Jan 10, 2019 11:54 am

It might be an uphill battle.

Two I would recommend based on Boglehead principles:

If You Can - William Bernstein ($0 for the Kindle version)

https://www.amazon.com/If-You-Can-Mille ... u+can+book

Bogleheads Guide To The Three Fund Portfolio - Taylor Larimore

https://www.amazon.com/Bogleheads-Guide ... o+larimore

You could also share the 10 Boglehead Principles:

https://www.bogleheads.org/wiki/Boglehe ... philosophy


Good and lucky are two different things. They are often confused within stock trading realms. :wink:
"We are not here to agree with you; we are here to provoke thoughtfulness." Unknown Boglehead

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Alexa9
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Re: Advice needed for a young person

Post by Alexa9 » Thu Jan 10, 2019 11:57 am

The odds are not in a stock picker's favor: 5 stocks drive the S&P 500
https://www.forbes.com/sites/simonmoore ... f1cefd6469

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cheese_breath
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Re: Advice needed for a young person

Post by cheese_breath » Thu Jan 10, 2019 12:02 pm

Will he be willing to read any books that conflict with his preconceptions?
The surest way to know the future is when it becomes the past.

magicrat
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Re: Advice needed for a young person

Post by magicrat » Thu Jan 10, 2019 12:19 pm

When I was in college I thought I could pick stocks (during the .com boom). The eye opener for me was when I lost almost all of my money. Fortunately I didn't have much to lose. Experience is the best teacher.

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Darth Xanadu
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Re: Advice needed for a young person

Post by Darth Xanadu » Thu Jan 10, 2019 12:28 pm

magicrat wrote:
Thu Jan 10, 2019 12:19 pm
When I was in college I thought I could pick stocks (during the .com boom). The eye opener for me was when I lost almost all of my money. Fortunately I didn't have much to lose. Experience is the best teacher.
Very true! (see my signature :wink: )

Perhaps this young person can construct a phantom portfolio and track performance vs the overall market?
"A courageous teacher, failure is."

sapper1371
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Joined: Tue Jul 10, 2018 7:21 pm

Re: Advice needed for a young person

Post by sapper1371 » Thu Jan 10, 2019 12:35 pm

"A Random Walk Down Wall Street" does a pretty good job of explaining why that, and picking managed funds, is a fools errand.

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