How to Amass the First $100,000
By Joshua Kennon. Investing for Beginners Expert
Thanks to his straight-forward approach and ability to simplify complex topics, Joshua Kennon's series of lessons on financial statement analysis have been used by managers, investors, colleges and universities throughout the world. "If an investment idea takes more than a few sentences, or cannot be explained to a reasonably intelligent fourth grader, you've moved into speculation," Joshua insists. "Whether you're dealing with a public company such as McDonald's, or a private company such as Chanel, these are the types of firms that are easy to understand. You know where the sales originate, what the costs are, and how profits are generated. These are the types of enterprises that aren't going to cause you to wake up in the middle of the night, breaking into a cold sweat because of the sub-prime crisis or esoteric securities trading in illiquid markets. That's a huge advantage to growing your wealth. Focus on what you know, pay a fair price, and invest
for the long-term.
No statement has better summed up the emotional and practical struggles confronting average people attempting to build a better life for themselves and their families than a saying that has been attributed to a very, very successful investor, now one of the wealthiest men in the world with a fortune estimated at more than $2 billion: “The first $100,000 is a bitch.” Pardon the language, but speaking from my own personal experience, I unequivocally agree and can attest to that fact.
In this step-by-step, part of the The Complete Beginner's Guide to Saving Money. I’m going to give you some general outlines that will help you get started on the road to putting aside your first $100,000 in investment capital, free and clear. Of course, laws and customs vary by state, region, and country, so none of this constitutes investment, tax, or legal advice and you need to consult your appropriate professional to ensure that a particular strategy, structure or course of action is right for you.