By Christian Gabis

Investors

Active Investors Passive Investors Speculators

Investing is something you can understand and that is enjoyable to you

You want to learn or already know how to understand financial statements

You have time to commit to researching and learning about companies

You have the patience to wait for good investments

You are in control of your own emotions

Prefer to have others research and find good investments

Typically own mutual funds or Exchange Traded Funds (ETFs)

Are willing to accept a market return (on average)

Are willing to pay others to manage their money

Make trades based on market movements or other indicators they think are important

Buy a security because it has “gone up” Don’t rely on underlying fundamentals of a

company to dictate its value (think CMG) Try to predict market movements or

outcomes Technical analysis, day-trading, etc.

Mutual Funds: Hold a large number

of stocks to diversify, Active and Passively

managed Expense ratio (Fees) Tax Consequences Performance LAGS

MARKET 80% OF THE TIME FOR ACTIVE MANAGEMENT

ETFs: More tax efficient than

mutual funds More liquid Also charge an

expense ratio Better choice most of

the time (especially for a lump sum investment)

S&P 500 tracking ETFs: IVV S&P 500 tracking Mutual Funds:VFINX Actively managed Mutual Funds: LLPFX Longleaf Third Avenue Funds Dodge and Cox REMEMBER TO LOOK AT THE EXPENSE

RATIO!!!

Don’t try to “time” the market…it does not work

Open a brokerage account As little as $100 will do for a start The more $$$ you can commit the more

options you will have when starting out You could start buying individual stocks with

as little as $500( but more is better)

Open a brokerage account Buy either and ETF or Mutual Fund (low

cost) Keep adding money COMMON MISTAKE: You only need ONE

fund. Don’t think you need to diversify with a bunch of S&P 500 mutual funds or ETFs!

CDs Savings Bonds Municipal Bonds Corporate Bonds Brokered CDs Treasury Securities Speculations: Oil, Gas, Gold, Silver, etc. Real Estate

Capital Requirements◦ Real Estate- High- but you could buy a REIT◦ Commodities-High- but there are ETFs that track

the underlying commodity◦ CDs- Around $1000- subject to interest rate

changes and inflation◦ Bonds- High-$10,000- can buy funds that expose

you to bonds◦ Savings Bonds- Low- $25- Generally Poor

Investment- subject to inflation risks

This is where CCIG comes in◦ Finding undervalued securities◦ Finding arbitrage situations◦ Sharing ideas◦ Experiences (failures and successes)◦ Support and information resource◦ Attempting to beat the market◦ Meeting other investors