Friday, February 20, 1998

The Benefit of Starting Early
by David Berger ([email protected])

I don't know what it was that got me started in reading the agate type in the Times. My memories of childhood include following my mock portfolio of things I knew: Coca-Cola, Mattel, and this tiny little company called Coleco. My parents were amazed, and could have sworn I was going to grow up to be quite Wise. Little did they know the Fool I'd become.

My first foray into actual stock investing was in college. I bought 100 shares of the company that made my favorite computer game for the Commodore64. One year after I graduated from college, I took that $825 investment in Electronic Arts, and put down $10,000 to buy my first car. I really thought I knew what I was doing.

Early success keeps you from being "scared" of investment decisions. Looking back, I should have been. I knew nothing about EA except that it made games I liked. I was fortunate that a few weeks later, they received the rights to make games for Nintendo and Sega, and the rest is history.

I've made mistakes since then -- listening to a cold-call broker, bottom-feeding on stocks that "just can't disappear," (they do), buying on rumor instead of research.

When those things happen, I look back on my "lucky" first investment, and refocus on what really makes good investing: Sound companies with good products and a propensity for growth. This Fool doesn't get fooled much anymore.

Have a similar tale?
Talk about it in the Fribble Message Folder!

[Did you know that you can pen a Fribble, yourself? We welcome submissions from readers. Just click here and read "What's a Fribble?".]

Submit a Fribble!