My humble beginnings

I had a keen interest in financial markets respectively financial instruments since my early years. I had no clue about how equities work. But stocks had a fascinating effect on me. The only thing I knew regarding financial instruments was stocks. As time passed I did realize that there are much more financial instruments then merely shares of a company. The vast number of instruments were exciting and at the same time frightening. How in the world are you supposed to understand anything amidst the vast number of instruments? What do you start with? What is better?

I did understand the concept of a fund (equity fund) pretty quickly. So equities caught my main interest. But how do I pick the right company? I had so many questions, but no one was there to help me. Finally I came in touch with equities for the first time of my life at the University. Terms such as share issue, dividends, distribution or accumulations were understood now. Being wet behind the ears, two fellow students and I decided we want to engage in the stock markets. Eventually we started our first engagement as elementary students of Business Studies.

 My first investment in equities was in 2001. I did a lot of research, without really knowing what to look for. I had no clue of what is important to know. But I was certain I was doing the right thing. My research singled out some individual stocks. The selected companies were Fresenius, Heidelberger Druckmaschinen and SAP. I was not interested in dot.com shares even though there was a big hype about them. So I had no interest in that sector at all. I also warned my friends from engagements in that sector.

Even though I knew about cost averaging I had no interest in a savings plan where you invest a certain amount each month on a selected equities fund. I wanted to make money. So I decided to put all my money on SAP and bought SAP shares. Soon I had a nice floating profit in my account. And I was proud about the profit. But the floating profit did not last long. Different factors lead to a recession. The optimism on the markets gave way to global terror warnings and wars. So I was experiencing a long lasting drought with my engagement. As mentioned already, I was wet behind my ears, but I knew not to be attached to the capital that was invested. So I did not really care that I was losing on my investment. Fortunately the shares gave me profit eventually, after years of waiting. My profitable investment in SAP,a DAX company, was more luck than judgment. Fresenius would have been as good of an investment.

I had a keen interest on charts at my first steps approaching the financial markets. The three of us were sitting at the computers at the University looking at charts. But we had no clue what to look at. We were throwing in some indicators not really knowing what they meant. But they gave us the impression we knew what we were doing. At times when I think back how much of greenhorns we were still puts a smile on my face.