new to investing, page-26

Berry, firstly, congrats on taking the courage to ask people for advice. You can learn a lot from the experience and mistakes of others.

I made and lost a fortune through the dotcom boom/bust. I made many mistakes through shares and property and am only happy to pass on what i have learnt through the ups and the very tough downs.

Here is what I think is very important (I only wish I were 18 again).

SHARES:

* At your age, you have time on your side. Do NOT think short term and go for a quick buck. Buy mostly good quality stocks. Don't mess around with penny dreadfulls.

* If you don't have a really good grasp on the market, I would put most of your money into managed funds. There are so many managed funds to suit your needs. I know buying individual stocks is exciting and you can look them up each day on HC, but honestly, if you don't have a vast knowledge and the time to monitor your stocks, you may as well throw darts at a dart board and hope for the best. If you wanted to have some individual stocks, have a portfolio of 70% managed funds, 25% your own picks (so you can follow them for fun) and 5% in small caps.

* Managed funds - there are hundreds you can choose from so don't think they are just boring and conservative. You can buy managed funds which concentrate on certain markets around the world (Europe, USA, Japan, Emerging Markets, Australia). You can buy a fund for just metals, famous companies, real estate funds etc.

* Leverage - leverage (borrowing) can be very profitable but it can also destroy you. I would be very careful leveraging into the market but it is something worth doing at your age. However, if you are going to borrow to buy, I would be VERY conservative and stay well under 50%. Others may disagree, but if you get caught in a bubble bursting you can do ALL of your money. ACtually, I think the best method is to match the amount you can put in each month. For example, buy 20k of shares. Then each month put in $250 of your own money and borrow $250 to buy stocks. But, again, be careful of your leverage. I would advise you to

* Re-invest dividends - it is a great builder of wealth. Here is a project for you. Go to google and type in 'DIVIDEND REINVESTMENT CALCULATOR". It is a fun exercise and you can see what your stocks could be worth in 5 or 10 years if you re-invest your divis. It is amazing how they grow!!!!!!

* The Trend is your friend - you will hear this a lot and there is a reason for it. It is true!!!! I have lost so much money on buying stocks and then buying more because they keep dropping. Then they go out the back door and I have done all of my cash. My advice is to look for a good quality stock which has a nice uptrend. I am wary of buying into a stock which has a distinct/clear down trend.

PROPERTY

* Don't borrow beyond your means
* If you buy a property, have your mates move in and help you pay the loan off (if you choose to live in it)
* Put as much money into your property as you can.
* Preferably buy a house over an apartment. I would maybe buy an apartment if it on the beach or near the city (BE CAREFUL OF BODY CORPORATE COSTS).
* HOLD ONTO YOUR PROPERTY - property is for the long term. It is also GREAT because down the track you can use the equity in your property to buy another one and then you are on your way.

I wish i could have my time over again. Probably the main bit of advice is to not be impatient. Don't look for quick gains and be happy to let time do the work, reinvest divis and don't overextend yourself. And if you want to play with penny stocks use a very very small percentage of your money. Otherwise you will get burnt. Remember, there are managed funds that can cover everything you need ranging from large caps to growth stocks/small caps.

Good luck!!!