The Successful Investment Journey

Derek Polcyn wrote an article on Investopedia that I thought summarized a well planed investment process. I have always been very aware of my financial situation as I am genetically frugal. As a young investor just beginning my own investment journey, I feel this is a great read for anyone wanting to start their own.

The most successful investors were not made in one day. Learning the ins and outs of the financial world - and your personality as an investor - takes time and patience, not to mention trial and error. In this article, we'll lead you through the first seven steps of your expedition into investing and show you what to look out for along the way.

1. Getting Started

Successful investing is a journey - not a one-time event - and you'll need to prepare yourself as if you were going on a long trip. What is your destination? How long will it take you to get there? What resources will you need? Begin by defining your destination, and then plan your investment journey accordingly. For example, are you looking to retire in 20 years at age 55? How much money will you need to do this? These are questions you must first ask yourself; the plan that you come up with will depend on your investment goals.

2. Know What Works

Read books or take an investment course that deals with modern financial ideas. The people who came up with theories such as portfolio optimization, diversification and market efficiency received their Nobel prizes for good reason. Investing is a combination of science (financial fundamentals) and art (qualitative factors). Science, however, is a solid place to start and should not be ignored. But don't fret if science is not your strong suit: there are many texts, such as "Stocks For The Long Run" (1994) by Jeremy Siegel, that explain high-level finance ideas in a way that is easy to understand.

Once you know what works in the market, you can come up with simple rules that work for you. For example, Warren Buffett is one of the most successful investors ever. His simple investment style is summed up in this well-known quote: "If I cannot understand it, I will not invest in it." It has served him well. While he missed the tech upturn, he avoided the subsequent devastating downturn of the high-tech bubble of 2000.

3. Know Yourself

Nobody knows you and your situation better than you do. Therefore, you may be the most qualified person to do your own investing - all you need is a bit of help. Identify the personality traits that can assist you or prevent you from investing successfully and manage them accordingly.

A very useful behavioral model that helps investors to understand themselves was developed by Bailard, Biehl & Kaiser.

The model classifies investors according to two personality characteristics: method of action (careful or impetuous) and level of confidence (confident or anxious). Based on these personality traits, the BB&K model divides investors into five groups:

* Individualist - careful and confident, often takes a "do-it-yourself" approach

* Adventurer - volatile, entrepreneurial and strong willed

* Celebrity - follower of the latest investment fads

* Guardian - highly risk averse, wealth preserver

* Straight Arrow - shares the characteristics of all of the above equally

Not surprisingly, the best investment results tend to be realized by an individualist, or someone who exhibits analytical behavior and confidence and has a good eye for value. However, if you determine that your personality traits resemble those of an adventurer, you can still achieve investment success if you adjust your strategy accordingly. In other words, regardless of which group you fit into, you should manage your core assets in a systematic and disciplined way.

4. Know Your Friends and Enemies

Your friends may be reliable investment books, reputable media and investment professionals with experience, long-term perspective and integrity. However, beware of false friends who only pretend to be on your side, such as certain unscrupulous investment professionals whose interests may conflict with yours. You must also remember that as an investor, you are competing with large financial institutions that have more resources, including greater and faster access to information.

Bear in mind that you are potentially your own worst enemy. Depending on your personality, strategy and particular circumstances, you may be sabotaging your own success. If you are a guardian and you see all your friends making a ton of money in the short term on the latest market craze, you would likely be going against your personality if you joined in (see How Investors Often Cause The Market's Problems). Because you are risk averse and a wealth preserver, you would be affected far more by large losses that can result from high-risk, high-return investments. Be honest with yourself - identify and modify factors that are preventing you from investing successfully or are moving you away from your comfort zone.

5. Find the Right Path

Your level of knowledge, personality and resources should determine the path that you choose. Generally, investors adopt one of the following strategies:

* Don't put all of your eggs in one basket. In other words, diversify.

* Put all of your eggs in one basket, but watch your basket carefully.

* Combine both of these strategies by making tactical bets on a core passive portfolio.

Most successful investors start with low-risk diversified portfolios and gradually learn by doing. As investors gain greater knowledge over time, they become better suited to taking a more active stance in their portfolios (i.e. tactical bets).

6. Be Disciplined

Sticking with the optimal long-term strategy may not be the most exciting investing choice. However, your chances of success increase if you stay the course without letting your emotions, or "false friends", get the upper hand.

7. Be Willing to Learn

The market is hard to predict but one thing is certain: it will be volatile. Learning to be a successful investor is a gradual process and the investment journey is typically a long one. At times, the market will prove you wrong - acknowledge it and learn from your mistakes. When you succeed, celebrate.

Conclusion

What you achieve as an investor will depend on your goals, but sticking to these seven simple steps will help keep you on the right path. Bon voyage!

by Derek Polcyn

Thanks Seniors

A quick thanks to all the seniors that will be leaving the team this year. Nebraska should be very proud of this years seniors and what they have both come through and accomplished. There is no question that it will be next to impossible to replace a Ndamukong Suh.

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Nebraska vs Arizona 2009 Holiday Bowl

I finally got the highlight video put together. All in all I would say Nebraska had a good year. We made some mistakes, but finished the year strong. By the end of the year, we knew who we were and what we are capable of. As always, I'm already looking forward to next year.

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Moon

Its been a while. College football season has nearly consumed my life once again this year. Nebraska ended with a bang with a 33-0 victory over Arizona in the Holiday Bowl. More on the Huskers in an upcoming post.

Confused by the title yet? It is the title of a song/lullaby that my Great Grandfather sang to my Grandmother, my Grandmother sang to my Mother, and my Mother finally sang it to me. I was very young when she used to sing it, and I could only remember a line here and there. While I was home for Christmas, the song came up and she wrote the lyrics down for me.

There was an old woman who lived in the moon,
She baked a rice pudding and cut it too soon.
Because 'twas not done, she gave it a throw.
It fell to our planet and we call it snow.

When the little boy saw what his mother had done,
He scowled and made faces which covered the sun.
His tears fell in torrents, he cried all in vain.
They fell to our planet and we call it rain.

Now the man in the moon, who had been off to town,
Saw his little boy crying. It caused him to frown.
He gave him some sweet meats and told him to dine.
And then there was smiling, we call it sunshine.

Nebraska vs Missouri 2009

Highlights I put together of Nebraska's win over Missouri.

2009 Nebraska vs Virginia Tech

I know I'm a week behind, but its football season. You can never post too much.

Huskers Pepper Ragin' Cajuns

The Nebraska offense scored early and often, and the Blackshirt defense notched its first shutout since Sept. 23, 2006, as the Cornhuskers celebrated the NCAA-record 300th consecutive sellout at Memorial Stadium with a 55-0 victory over Louisiana-Lafayette on Saturday night.

Playing in front of a Memorial Stadium record crowd of 86,304 and an FSN pay-per-view television audience, No. 25 Nebraska improved to 3-1 on the season after racing to a 34-0 halftime lead against a Ragin' Cajun team that slipped to 2-2. Louisiana-Lafayette's only previous loss came at LSU last week, after knocking off NU's Big 12 Conference brethren Kansas State, 17-15, the previous week.

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Nebraska Downs Arkansas State

Nebraska puts up another "W" in the win column. Defensively not really were we want to be yet, but next week will be a good test of things. Below are some of the highlights of the game.

Huskers Ground the Owls

Roy Helu Jr. rushed for 152 yards in just over one half of football, and Nebraska's Blackshirts grounded Florida Atlantic's high-powered passing game, as the Cornhuskers rolled to a 49-3 victory over the Owls in front of the NCAA record 298th consecutive sellout at Memorial Stadium on Saturday.

Player in front a season-opening crowd of 85,719 - the third-largest crowd in Memorial Stadium history - and an FSN pay-per-view audience, Nebraska notched its NCAA-leading 24th consecutive season-opening victory while stretching its active winning streak to five games dating back to last season. It was the Huskers' most-lopsided season-opening win since 1993, despite playing a 2008 bowl eligible team that was loaded with returning offensive starters.

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Talk about the Game at HuskerBoard!

Sand Hills Golf Club

A friend of mine recently made it up to the Sand Hills Golf Club for a few days of golf at its finest. Golf Digest dubbed Sand Hills the best course built in the last 50 years. It's a Crenshaw & Coore design, and most likely their finest. The use of the natural landscape is truly stunning. I've included some photos of his visit below.

Bowlegged Ants

Here is another little diddy that my Grandpa used to say. Its essentially just a really goofy story, but I put some music to it that I feel fits the overall mood of the rhyme. Here are the lyrics and a download link.

Ladies and gentlemen, hobos and tramps;
Cross-eyed mosquitoes and bowlegged ants;
I come here before you, directly behind you;
To tell you a story, I know nothing about

This Thursday which is Good Friday, there will be a convention;
In the women’s club, which is strictly for men;
Admission is free so pay at the door;
Pull up a chair, and sit on the floor

It was a cold summer day in winter;
The snow was raining fast;
As a barefooted boy with shoes on;
Stood sitting in the grass

It was a bright sunny day, in the dead of night;
Two dead boys got up to fight;
Three blind men to see fair play;
Forty four minutes to yell hooray

Back to back, they faced each other,
Drew their swords, and shot each other;
A deaf policeman, heard the noise;
And came and arrested those two dead boys

Soul Sucker

I was listening to a song performed by Amos Lee the other day, and I decided to learn it, play it, and record it. The track below is the result. I posted a video of the same song not too long ago, but i wanted a better quality recording. I messed up a couple of parts with timing, but I'll just hope no one notices.

Just a Little Talk With Jesus

I was listening to an old recording of my three Uncles and Grandpa singing the song Just a little Talk With Jesus. As I sang along I decided to Google the lyrics to make things easier. I found it nearly impossible to find the lyrics to this song as my family traditionally sang it, so I decided to transcribe it here. Enjoy. I have also included the track I used below.

I once was lost in sin, but Jesus took me in.
And then a little light from heaven filled my soul.
It filled my soul with love, and wrote my name above.
And just a little talk with Jesus made me whole.

Now Let us have a little talk with Jesus.
And we’ll Him all about our troubles.
He will hear your faintest cry.
And He will answer by and by.
And when you feel a little prayer wheel turning.
And you know a little fire is burning.
You will find a little talk with Jesus makes it right.

Some times my way is drear, without a rain of cheer.
And just a little cloud of dark creeps or’ the day.
The mist of sin may rise, and hide the sunlit skies.
But just a little talk with Jesus makes me whole.

Chorus

I may have doubts and fears, my eyes will fill with tears.
But Jesus is a friend who watches day and night.
I go to him in prayer, he knows my every care.
And just a little talk with Jesus made me whole.

Chorus

300 Consecutive Sellouts

When Nebraska hosts Louisiana-Lafayette on Sept. 26, 2009, a wonderful moment in Husker football history will be celebrated. Memorial Stadium, home to the Cornhuskers since 1923, will celebrate an unprecedented and NCAA-record 300 consecutive sellouts with the third sellout of the 2009 season. The Louisiana-Lafayette game will begin at 6 p.m. and will be available to the public via pay per view through Fox Sports Net.

As part of the 300th straight sellout celebration, the 2009 Huskers will wear uniforms designed by adidas to match those worn by Nebraska in 1962. The uniforms (numbers 1 through 99) will be auctioned to the public as full sets, including pants, jersey and helmet, on Huskers.com this fall. The auction will begin in conjunction with the first week of fall football practice and end the week of Oct. 4. Minimum bids for each set will be $500. Replica jerseys and helmets will also be available for sale through Huskers Authentic.

In addition, all Husker letterwinners and staff who were a part of the 1962 team have been invited to return to the site of the nation’s longest sellout streak for this occasion. The 1962 team will be a part of Homecoming festivities and will be honored on game day.

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Getting Reckless

Went to a great concert down at Gruene Hall on Friday night. Reckless Kelly puts on a fantastic show. Had a little food, a little drink, and a lot of good music. Definitely worth seeing again.

Two New Covers

Here are a couple of covers that I did this last week. Haven't been playing music as much as I used to.

The Locksmith Episode

I'm completely sick to my stomach. Yesterday I went over to a coworkers house and for the first time locked my keys in my car. I didn't have a backup key and my grand theft auto skills failed me miserably. So, I made the move and called a locksmith. This guy got it open in a total of 1 minute and no effort using a inflatable wedge and a metal rod. He then said that he couldn't take credit cards on weekends and would only except cash. The total bill came to $150. Nothing pisses me off more than getting scammed and knowing it. The good news is that I now know how to prevent this. First, shop around and only pay what you're willing to. Second, have an extra key. Last, punch that guy in the throat the next time I see him. There is no way he sleeps well at night. Ranting accomplished.

Samsung Eternity

I have had the Samsung Eternity now for a few weeks and have been able to check out all the features. One feature that I thought worked amazingly was the camera. While its only a 3mp camera, it did a great job in most applications. One of the camera settings is Panorama. In this mode you slowly move the camera n any direction and it takes up to 6 pictures and splices them together. The result is pretty good considering it was done with a camera phone and no software. Check out the examples below.

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The Office

I've been a big fan of this show since it came out, but I've never laughed so hard at Season 5 Episode 13. The first 10 minutes are non stop laughter.

A Night by the Fire

This is what its all about. Just having a great time.