1. How and why did you get started investing? What is your background?
About 5 years ago I enrolled at the University of Arizona. As a freshman, I was worked at a deli on campus. One of my colleagues told me he ‘invests’ $100 thousand of his money. A month later, he had more than ‘tripled it’ $360 thousand. My jaw dropped. I had saved $4,000 by negotiating cell phone prices down on craigslist and then subsequently selling them market price on eBay both in high school and also my freshman year of college – a strategy I later learned to be a term in finance called Arbitrage. I said to myself, I have $4,000 today, if I conservatively double my money every month until I graduate, I can retire without ever working a post-college job. Most inexperienced investors would believe these ego-stroking stories, but as I read more about finance, I realized that there is absolutely no way he turned $100 thousand into $360 thousand in a few weeks. Also, why would someone be working for $7.65 per hour if they were doing so well? I applied for a Scottrade account about a month after on my 18th birthday. So my interest in investing was effectively by chance. Continue Reading »