Your First Look at the Phone

When you get up in the morning, how long is it before you take your first look at the phone?  For me, I am often drawn to family texts (if there are any) and sometimes a quick look at work emails (are there any fires to put out?)  Sometimes my smart phone believes I need to see a summary of the latest headlines, including financial news.  Some people dive immediately into social media.

Normally, when I take my first look at the phone it signals to me, and perhaps to others around me, that I am ready to start my day.  It is metaphorically time to get going.  In the world of Cookbook Investing, this is the moment when you have done all of your homework, allocated the right funds, and are ready to make your first recipe (stock purchase).  You get up refreshed from sleep, and when you look at your phone, it has a calendar reminder: BUY FIRST STOCK.

A First Time for Everything…

It probably shouldn’t be made into melodrama, but making your first stock purchase on your own is a big deal.  Tens of millions of Americans NEVER experience that first time for a variety of reasons, ranging from fear to indifference and many things in-between (and our Cookbook Investing book aims to change all of that!) 

My first stock purchase was an “affinity” purchase, which means I bought it because I liked the products the company made and that outweighed other more relevant factors.  I have since been trained that “affinity” stocks are not always your best option for a wide variety of reasons, including the need for a higher level of objectivity when your hard-earned cash is in play or at risk.

Checking Your Phone Again…

The same way your first look at the phone will undoubtedly not be your last, your first stock purchase will almost certainly not be your last, either.  But the importance of the first is that you have made the decision to put your apron on, go into the kitchen, and to make something.  It may turn out great; it may not; but it will always be a learning experience.

The importance of recipes (or tried and true investment strategies) is that they have already been tested, and most of the time they work for most people.  Recipes in the kitchen are meant to be a repetitious activity that builds muscle memory and refines culinary skills.  What would be the point if you made a prize souffle the first time you ever tried it, and then never made it again?

Conclusion…

Just as you don’t see everything that could happen today on your phone when you get up in the morning, you won’t know how your first stock purchase will go until you actually complete it.  Like all forms of expertise, there are things you can “practice” to be ready (learn how to read simple charts; practice comparing several different forecasts; etc.) but ultimately game day means getting up and doing it for real.  You’re reading this now, maybe on your phone—does your calendar have an entry for “Buy First Stock” on it?