Getting Started SIG

1
Getting Started SIG

• Navigation for New Investors
• Leigh Anderson, SIG Leader

Copy of presentation is at www.tayara.com/hia
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Objectives for Getting Started SIG

• Welcome orient visitors to HIA
• What new investors need to know
• Elements of successful investing
• Concepts, terminology, tools, methods, strategies
• Widely-accepted knowledge from finance academics
  and practitioners
• Emphasize risk control, and first do no harm
• Opportunity for open, unstructured QA
• Roadmap/references for learning more

3
Who is Leigh Anderson (and why is he talking to
us)?

• 30 years ExxonMobil, retired in 2006
• Math / statistics / engineering / IT background
• NO FINANCIAL career experience!
• Needed to educate myself in preparation for
  retirement
• Found most pop investing books worse than useless
• Barnes Noble investing section is a toxic waste
  site
• After much searching, discovered sound
  information
• Based on evidence and fundamental business
  principals
• Rigorous academic research wisdom of
  practitioners
• Chartered Financial Analyst (CFA) program (for
  professionals)
• A (surprisingly small) list of books for the
  non-professional
• Now getting in touch with my inner professor

4
Bias Alert!

• I like
• Value investing for for the long run
• Fundamental quantitative analysis
• Rigorous published research
• Words practices of the great value investors
• History of capital markets
• Understanding boundaries of human rationality
• I dislike and/or am ignorant of
• Short-term Trading Momentum investing
• Technical analysis
• Systems (IBD/CANSLIM, VL/Timeliness, etc.)
• I believe
• Markets are usually efficient, sometimes
  irrational
• but always highly random and unpredictable
• No free lunch possible but very hard to beat the
  market
• Managing risk uncertainty is more important
  than seeking return

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Getting Started Agenda(phases of each meeting)

• Overview of HIA for 1st time visitors
• Im new what do I do first?
• Topic of the Day
• self contained, varying each meeting
• Open QA
• any investing topic
• Book Shelf
• books references of interest

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Houston Investors Association

• http//www.houstoninvestors.com/
• Founded in 1981
• Non-profit association 130 active investors
• Wide range of investment experience and interests
• Meet monthly to exchange investment knowledge and
  ideas in an informal and friendly environment
• Top-notch speakers
• Membership 1st meeting is free. 60/year (150/
  3 years)
• We need volunteers!!! (To sit the front desk)

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HIA SIGS

• Special Situations SIG reviews stocks and other
  securities which are out of favor on Wall Street
  and sell at bargain basement prices
• Technical Analysis SIG introduces topics to
  technical analysis. the use of indicators,
  trending and/or investing in stocks, mutual
  funds, futures, and options.
• Internet SIG presents Internet sites and issues
  of interest relegated to the WEB and investing
• Trading 101 SIG will work through Van K Tharp's
  book, Trade Your Way to Financial Freedom
• Mutual Funds SIG provides generalized information
  concerning the selection and timing of mutual
  fund investing.  The emphasis is on technical
  analysis. 
• Derivatives Advanced Options SIG to discuss and
  evaluate investing flexibility that options,
  futures, currencies, and other derivatives give
  to investors
• Short Term Trading SIG (defined as 1 week to 3
  months) rules rationally crafted out of
  experience and history, during periods of
  emotional highs or lows
• Stock Market SIG to help each other make better
  use of the tables and charts in Investors'
  Business Daily, with emphasis on CANSLIM approach
• Getting Started SIG presents the elements of
  successful investing

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Upcoming SIG Topics

• October -- (Im at the beach). Following months
• Real men (and women) get dividends (not just for
  wimps anymore) The role of dividends in
  long-term investment success
• So what do you expect? Investment returns over
  the next decade (BYO Alka-Seltzer)
• Sitting on your Assets Constructing and
  maintaining a diversified risk-managed portfolio
  
• Make the Last Check Bounce Optimum withdrawal
  rates from your retirement portfolio
• We have met the enemy and he is us How our
  smart brains make us dumb investors
• How to Lose a Million Dollars, Guaranteed!
  Common investing mistakes