What should I do if I want to become an investor?
I currently run my own business. However, after reading so much about value investing, I´ve decided I want to dedicate my career to become an investor. I want to invest my money an othe people´s money. Therefore, I need the "know how" of business valuation. I want to go to a program that will definitely give me the tools to valuate business. What do you guys recommend? Does it need to be a top nottch program like Columbia or Harvar? Can it be something more affordable like Mccombs?
What's your current business? What is your background like?
Wholesale construction equipment
I have also been involved in wholesale of industrial and hardware supplies.
I think that it would be highly beneficial, and prudent when considering risk, that you first find an investment manager to handle your money. From there, you could track a portfolio allocation managed by a professional and learn about money management that way. If, after you've learned more about the industry and how it works, you decide that you'd like to manage your own investments, you can likely do so.
The reason I recommend this approach is that it's incredibly risky to manage your own money without some sort of experience with research, valuation, and investment management. Even top-rated professionals fail and lose their client's money; it would be foolish to think that the same couldn't happen to you.
It's also important to consider how much capital you're trying to invest. If your total portfolio is >$1 million, it's safe to say that your money is better off with an experienced fund manager who can help you allocate your portfolio across a spectrum of risky assets, including mutual funds, equity-based instruments, and perhaps even some government bonds (depending on your investment horizon).
That said, if you're definitively set on learning to value companies and invest money, take a look at the CFA program. If you can hack that, you're good to go. School won't teach you how to manage people's money, and though the CFA won't necessarily do that either, I think it's a much better step toward educating yourself on the matter. The most important thing for you, aside from education, is experience. Like I mentioned earlier, try finding a good manager to handle your investments first. Then, as you become more educated, transition out of that.
Thanks for the advice Kassad. I would definitely start in the $100,000 range. I made only one investment in Moodys that went up 200%. Sunbeam, I have read almost everybook about value investing out there. What I feel I lack is the experience as Kassad mentioned. I dont know why, but I though an MBA or 1 year MSF in McCombs could teach me that.
Unfortunately, an MBA will simply cost you two years of time, and will teach you about business operations, management strategies, accounting, finance, marketing, etc. You might take a couple of courses on valuation, but nothing further.
A MSF would go further into valuation and portfolio management depending on what courses you take. However, it still wouldn't be nearly as in-depth on that topic as the CFA program. I highly recommend you look at the CFA curriculum and consider what it offers.
Also, with $100K, I strongly recommend that you do something like the CFA and/or work with an investment manager before you make too many moves. I say this because it's incredibly easy to make huge percentage gains with small amounts of capital, but in the same light it is very, very easy to lose huge portions of that capital. Worse still, the inexperienced investor usually cannot even see the loss coming.
I look at the McCombs MSF program because: 1) 10 month only 2) Apparently it prepares you for CFA 1 exam 3) Love Texas and would love to live in Houston (already did) or Austin
I guess I kill to birds with one stone.
Consult with user TNA about MSF programs. He'll steer you in a better direction than I could on the matter. For the record, I don't think it's the right way to go; again, ask TNA.
I guess I need to find out where one can get prepare for the CFA program.
schweser notes and at the CFA institute for registration
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