JUNE 2005

When you first get started with NAIC (BetterInvesting), you should consider taking classes in your local area as soon as possible. These classes are a wonderful way to learn about investing from other experienced investors. NAIC (BetterInvesting) classes are taught by volunteer instructors who are there to teach you about investing and not to sell you products. By far the most important tool is the Stock Selection Guide. This should be your first class. The Stock Selection Guide is a very methodical and relatively easy way to analyze companies to determine which ones may merit your investment dollars. After you have completed a Stock Selection Guide, you probably know more about the company than the majority of brokers. It is a proven tool that has been used for over fifty years. If you live in an area where classes may not be an easy option, you can still purchase the new books recently released by NAIC (BetterInvesting) which cover various topics including the Stock Selection Guide. Starting or joining an investment club is another great way to start your investing education. An investment club gives you the opportunity to pool your knowledge with other investors. Some of these investors will be new to investing and others may have some experience. Presenting Stock Selection Guides during club meetings and discussing them in detail is an excellent way to learn and practice this new skill. NAIC (BetterInvesting) tools are truly unique in that they can be learned relatively easy by new investors and yet have the capability of being used by very seasoned investors for a lifetime of successful investing.

NAIC (BetterInvesting) has some very fundamental principles of investing. First, invest regularly over your lifetime. It is so important to establish a systematic investing program. So many people won't invest when they think the market is overpriced and those same people won't invest when the market declines because they are too scared. No one really knows when the market is at a top or bottom. Reinvest your earnings and dividends. This is important because you are using compounding and over a lifetime this will help you build a substantial portfolio from small beginnings. Buy high quality investments. What this really means is to buy companies that have consistent growth of sales and profits. These same companies should have excellent profit margins and a good return-on-equity with a low level of debt. You also need to use the Stock Selection Guide to make sure you don't overpay for these companies. Finally, you need to diversify your investments. It would be foolhardy to put all of our investment dollars into one or two investments. We need to spread the risk by spreading our money across a number of companies in various industries or in different types of mutual funds if that is our choice of investment. The real benefit of investing the NAIC (BetterInvesting) way is not that it is a method to get rich but it will manage our risk such that we will minimize the chance of losing our money. I learned many years ago that the best way to make money is to find a way to quit losing it.

G. Ball