In 1968 my grandfather decided I needed to invest money that he set aside for me as a life insurance policy (cash benefit). We jumped on the city bus at Dearman’s Drug Store to ride downtown to meet his stockbroker. I opened my first investment account, I must emphasize I already had a passbook savings account at City National Bank. Savings are treated differently, and you should not confuse with retirement investing. We decided to invest this money in a safe dividend paying utility stock, Gulf States Utilities. Gulf States Utilities eventually went bankrupt. The lesson is: do not buy into a company for a dividend (current income), but look at long term revenue and earnings growth and let that steer you towards your investment selections.

My next investment was in 1976, which was an Oil and Gas Drilling Limited Partnership that offered a substantial tax deduction. I lost my entire investment in this venture. The lesson was: do not commingle your capital in a Limited Partnership, and do not invest with tax savings being a major consideration. Also try to avoid commingling your capital in any investment. You really want your capital separate.

In 1982, I was invited to join a Venture Capital Limited Partnership. Again, I lost my entire investment in this partnership, and again made the critical commingling mistake and tax benefit error.

Finally, in 1985 I started to focus on high quality stocks using the GARP strategy.  “Growth at a reasonable price” strategy worked reasonably well, but as I learned more about equity investing, I decided that growth equities were the way to go.  Since 1995, I have consistently invested in growth equities and consistently improved my portfolio management skills for myself and my clients. Investing is a way of life, and after over 40 years of investing I am in control of my investment destiny. Do not look for get rich quick ideas or rush into any investment.  Take your time and build your portfolio over the long term.