Oh the Stocks You Will Buy

Mike Schellinger Blog, Educational 2 Comments

We are entering the graduation season which of course is the time of commencement speeches. It makes me reflect on what I want my children to know about investing particularly in stocks. I have six children and all will need skills in investing to manage their finances. I imagine some may eventually pursue work in the finance field but it is up to them if they want to do that. I just want them to have the skills to manage their investments enabling them to be financially successful.

I believe that educating my children on finances is one of many important parts of my job as a parent. If I were to be speaking at a commencement to tell them about investing in stocks, here is what I would say:

 

Oh the Stocks You Will Buy

 

Oh the stocks you will buy

investing in your own style.

The journey you follow

can improve life by a mile.

 

Don’t imagine a dollar amount

as the destination you must achieve.

Investing is a life-long journey.

Warren Buffett absolutely agrees.

 

There will be plenty of successes

and plenty of mistakes.

Investing has many ups and downs.

You learn those are the breaks.

 

You can avoid some mistakes

by learning from others.

It is easier this way

than taking your druthers.

 

You might invest in some story stocks

and overpriced stock plays.

It would be better to purchase cheap

in fundamental ways.

 

You buy on a tip

without verifying.

It’s sold with great loss

which is terrifying.

 

Management promises

bought hook, line, and sinker.

The investment becomes

a humougous stinker.

 

You buy a stock

with an impaired balance sheet.

Soon you notice

massive dilution complete.

 

The company has

an exorbitant customer concentration.

Some customers leave

creating a financial abomination.

 

The company’s share structure

has billions of shares.

They dilute, dilute, dilute

because they don’t care.

 

The management team is

not aligned with shareholders.

The leaders get richer

while you just become older.

 

A stock hits its sell point

but you hold long term for tax savings.

The stock price declines more

than Uncle Sam would have been gaining.

 

You scorn legal problems

that could be an issue.

The company’s stock drops

and you need a tissue.

 

You made a great investment

and gloat confidently.

Your next investment is a

train wreck for all to see.

 

The market is crashing

with investor panic at its worst.

You sell a perfect stock

in a big emotional outburst.

 

You fail to create

a good asset diversification.

Your account blows up

and you take an investing vacation.

 

You have to make some mistakes

to learn the right way.

It’s the mistakes that you make

that teach you to play.

 

Each time you stumble or blunder

your investing will improve.

If you toil laboriously

investing will become smooth.

 

There will be success

when you buy something fantastic.

The dough that you earn

will make your spirits ecstatic.

 

Investing is all about

growing capital long-term.

Don’t expect results quickly.

That you will painfully learn.

 

Sometimes results come quickly

and sometimes they will be slow.

A lifetime of compounding

makes your accounts grandly grow.

 

Your education has just commenced

 on this glorious graduation day.

One day you will be a great investor

if you continue to study away.

 

Don’t forget your ethics

when increasing your stash.

Your eternal result

is worth more than some cash.

 

Remember, however,

that money isn’t everything.

Lavish love will make you

much happier than anything.

 

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Comments 2

  1. Hi Mike,
    Exceptionally well. You have covered almost entire world of investing. Starting from all philosophy of value investors to Growth investor including momentum investor.
    If I trace my life of investing which is just started from last 5 years (Late start at age of 29 considering Warren Buffet and Mohnish Pabrai), you covered all things which I learned so far. and lot more things which may happen to me in future. (Learning from your post to avoid some mistakes in future.)

    Great article. Love it. Going to keep it as frame in my room.

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