The DIY Stocks Concept was started because I ran into a former client at a social event. He asked me for a recommendation for a new financial consultant and when I couldn't think of anyone, I offered to help him learn how to make his own investment decisions. After two years, these are his impressions so far:
What prompted us to move from our broker?
·
We didn’t feel as if we were getting any
personal attention such as advice or suggestions.
·
After 2008, we saw our portfolio decimated and
the rise back up was too slow for our liking.
·
I ran into Kathy again after years and
remembered our long and informative conversations peppered with what struck me
as very personally targeted advice.
Why DIY Stocks?
Kathy took a genuine interest in our personal
situation and our short- and long-term goals.
·
Kathy offered to teach me about her approach
with the goal of weaning me from her services
·
The payments to DIY Stocks were a flat rate as
opposed to regular payments based on a percentage of growth.
Why individual securities as opposed to funds?
·
Well, they are more fun! What I mean is that
Kathy’s approach is to research stocks of companies that are:
o
Already a part of our lives – examples for us
are: Target, Starbucks, TJMaxx, P&G, GE, Facebook
o
Industries in which we are interested such as
electric vehicles, solar energy, wind energy, 3D printing
. . . and then buy ones that are strong with
good potential. This makes it fun because our research is ongoing as we shop or
listen to the news. This approach changed the way we look at and our interest
level in our own neighborhood and chosen industries.
·
Stocks offered the growth potential that we
wanted to get our portfolio back where we needed it.
Is this for everyone?
No. This is for people who:
·
Are interested in business and businesses.
·
Have a general understanding of business.
·
Enjoy some level of research (it’s not necessary
to read the financial statements with a thorough understanding, but I must
admit that I just read a book to hone my skills in this area)
·
Can stomach more risky investments than mutual
funds.
Cons?
·
Riskier than funds
·
Requires more work on your part
Pros?
·
You become active in your future
·
You learn about the world around you
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