I recall making my first investment some 30 years ago. I had $2,000 to invest. I had the uncertainty of not knowing what to do with it other than than the general idea of making an investment. I had the fear that I make a bad investment and lose much of it. What to do?
I figured if I left it my bank account I would get next to nothing in interest and inflation would eat up the value of my money over time. I felt I had to invest it in something. I plumped on the Stock exchange as there is plenty of information available about companies and shares.
I had a look at the finance pages in the newspaper where the share prices are listed. There were hundreds of companies listed. I didn’t know which one to buy. There is no such as thing as the perfect investment so I figured I would settle for one that looked good. The next problem was how to pick which share to buy.
I decided I would pick an established and long standing company. A company that sold what I considered “good stuff”. I would look for a company that was making a profit and didn’t have too much debt. My selection criteria were very amateurish.
I read up on a range of companies that looked good to me. I settled on ICI Australia. I found a stockbroker and put my money down. I took the risk. Some months later my first dividend cheque arrived in the mail, a great psychological boost.
That first investment is the scariest. You must overcome the fear and uncertainty to make that first investment. It gets easier and you learn more as you go. You must make that first investment if you want to build an investment portfolio.
Make that first investment. The alternative, not making investments, is worse.
Disclaimer. This is not investment advice. It merely recounts why I made my first investment.