I want to start an investment company

[doctorj]

Curtin's a good, relatively practical school. I have to admit to taking the path of least resistance and really didn't have anything to do with my lecturers beyond what was absolutely necessary, so I can't recommend anyone.

I remember the Accounting 100 lecturer being very switched on, personable and helpful. Not related to investment obviously, but I'm sure he'd find the time to at least point you in the right direction if he's still there.

 

[doctorj]

The goal is not solely to learn skills from the firm but also to meet other individuals who may have ideas to offer [e.g. your mate]
I was influenced by a mate I met at uni and we subsequently ended up at the same institution as each other. His enthusiasm for options influenced me to take the same path.

It's not very clear what "investment company" the OP wants (perhaps I should reread the original post), but if you see yourself going beyond straight trading of listed equities and into the world of private equity, I can't stress enough the importance of mazzatelli's comments.

No matter how much money you have at your disposal, you won't be able to originate business without knowing other people in the industry.
Even if you just want to trade equities, I can't underestimate the value of being able to pick up the phone and ask someone (another fund, someone in the particular industry etc) what they think of company XYZ.

And if joining your local yacht club is out of the question, the next best way to meet these people is to work with them.

 

[Gunlom]

There is nothing like real experience to learn the great investing and money management lessons, you can read it, but to really understand you have to go through it.

I have been investing since I was 19,(now 32) starting in property, in Perth, and ridden the booms, and busts, over geared, redraw equity for living expenses, lost money margin lending, lost nearing $100k in a few short months on the ASX, made thousands buy and selling land, renovating crappy houses, made so much easy money in booms, and thought I was was a genius!, forced to sell some assets because I over reached, not hedged for Interest rate rises, It's been a fantastic experience, I wouldn't swap it for anything....

but everything I do I get better and more focused on the goal, which I decided last year is to be a full time Investor.

There is so much knowledge out there, the best advice to to find something you are passionate about and focus on the that till you can make money from it, then move on to the next thing....

 

[kingcarmleo]

I understand that Uni is important and that some concepts are essential to understand but I have come to realise you can't buy experience. You can always read books based on theory but how much of that theory actually evolves into practice?

Getting back to my plan, I don't want trading to be the only way the company makes money. I want to diversify heavily into many different areas but to start it will mostly have to be done through buying and holding shares. I want to start out with low risk with most of the money invested in bonds, term deposits and sound companies then look to expand into other areas. Basically like bell financial group they are slowly diversifying their products.

 

[beamstas]

I understand that Uni is important and that some concepts are essential to understand but I have come to realise you can't buy experience. You can always read books based on theory but how much of that theory actually evolves into practice?

Getting back to my plan, I don't want trading to be the only way the company makes money. I want to diversify heavily into many different areas but to start it will mostly have to be done through buying and holding shares. I want to start out with low risk with most of the money invested in bonds, term deposits and sound companies then look to expand into other areas. Basically like bell financial group they are slowly diversifying their products.

Is there any proof that this actually makes money? Or have bell got to where they are now and then you looked at what they have done and backfit an idea that you can actually make money like this.

I don't know the answer but it might be something that is worthwhile to think about.

 

[kingcarmleo]

Sorry I'm not quiet sure what you mean beamstas? but I do know that brand extensions and diversification are a key to growth in any business.

 

[prawn_86]

Is there any proof that this actually makes money? Or have bell got to where they are now and then you looked at what they have done and backfit an idea that you can actually make money like this.

I don't know the answer but it might be something that is worthwhile to think about.

And just on this point, why would people invest with you as opposed to someone that has been around for ages like Bell?

Its great your thinking about things, but remember there are 100s of fund/investment co's out there, so how are you going to stand out?

 

[beamstas]

Sorry I'm not quiet sure what you mean beamstas? but I do know that brand extensions and diversification are a key to growth in any business.

What i mean is you are acting like you can go out, raise funds, diversify and become the next big thing, with no proof of your methods, all you have is a backfit idea that is not proven to work.

Look at all the funds around the place, hedge funds unwinding & deleveraging, super going out the window, managed funds having record losses and every second day another company is raising capital. Obviously what they are doing only works during a bull market, and the next black swan event will clean the next lot of garbage out that comes around during the coming next bull market.

Just becuase funds in the past have done things a certain way, does it mean it works, or did random luck produce the result?

Not many people on this board buy into funds, with good reason, they tend to lose alot of money in bear markets. People like to be able to control things, giving capital to a grad uni student to sling around wouldn't fit too well with investors risk profiles.

By all means prove me wrong, but diversification, your only plan of attack, is NOT guaranteed to make money.

Brad

 

[kingcarmleo]

And just on this point, why would people invest with you as opposed to someone that has been around for ages like Bell?

Its great your thinking about things, but remember there are 100s of fund/investment co's out there, so how are you going to stand out?

Yes it is a good point you make Prawn, a point that I think about regularly. I will aim my services at a specific target. I haven't decided yet however I am looking at the younger crowd and more specifically university students. I can possibly offer them a way to pay their HECS or a majority of it as soon as they finish uni by investing in the company. This is just one of a few ideas I have constantly going through my mind.

Marketing does teach you the importance on differentiating yourself from the competition and having a product or service that is aimed at a certain target market, so I will try to stick to this philosophy.

 

[kingcarmleo]

What i mean is you are acting like you can go out, raise funds, diversify and become the next big thing, with no proof of your methods, all you have is a backfit idea that is not proven to work.

Look at all the funds around the place, hedge funds unwinding & deleveraging, super going out the window, managed funds having record losses and every second day another company is raising capital. Obviously what they are doing only works during a bull market, and the next black swan event will clean the next lot of garbage out that comes around during the coming next bull market.

Just becuase funds in the past have done things a certain way, does it mean it works, or did random luck produce the result?

Not many people on this board buy into funds, with good reason, they tend to lose alot of money in bear markets. People like to be able to control things, giving capital to a grad uni student to sling around wouldn't fit too well with investors risk profiles.

By all means prove me wrong, but diversification, your only plan of attack, is NOT guaranteed to make money.

Brad

Ok, I understand what your saying now. All valid points and by no means do I think that everything just falls into place and makes money. I have many years to develop a business plan and strategies to test , my main idea is to be low risk and diversified whether that works I will only know in time but what I do know is a lot of these funds could have reduced their losses if they had not got so greedy, risky, leveraged.

 

[Mr J]

I can possibly offer them a way to pay their HECS or a majority of it as soon as they finish uni by investing in the company.

Sounds like busking .

 

[Trembling Hand]

I do know is a lot of these funds could have reduced their losses if they had not got so greedy, risky, leveraged.

Mate that is their job.

 

[Mr J]

Also works both ways. They amplified their gains as well as their losses.