‘’In my opinion, the goal of investing is to be free. The freedom to have a job you enjoy, the freedom to travel, the freedom to feel safe even if there are any unexpected kickbacks, the freedom to spend time with your loved ones and the freedom to tell your boss to go to you-know-where…” – Taavi Pertman’
Many people would love to have a life like that. By investing, one can achieve financial freedom. For that, you have to read a lot, make the right decisions and learn from others’ mistakes.
An investment club is starting at EBS. Its goal is to teach aspiring investors and to share tips. I talked to Randy Padar, the founder of the club, about his knowledge about that world and his idols and why our university needs an investment club.
How did you find your way to the investment world?
I’ve never been much of a reader – most of my time was spent looking up information on the internet. I first heard of investing when my father recommended Jaak Roosaare’s book “Rikkaks saamise õpik”. At first I wasn’t really into it but when I started reading I realised that it’s a whole other world. I was interested in money and investing as any normal 16-year-old boy would be so the book gave me the push to find out more about this world.
How long have you been investing?
I started when I was 17. After I’d read all the books my father had recommended, I didn’t have the courage to start investing immediately. Then I decided to take my first step and bought 200€ worth of Tallink stocks on the Baltic Stock Exchange and later made my first return on investment with this deal. By now, I’ve been investing for two years.
What are the biggest pros and cons of investing?
- You get wiser;
- A good way to generate additional income and achieve financial freedom;
- There are a lot of things to invest in,
E.g.: real estate, joint funding, stocks, crypto, you can even invest in wine and so on;
- Additional knowledge for the future;
- The young people of today don’t want to think of retiring but investing is a great way to guarantee yourself a great retirement. I’ve thought of that and will ensure that I’ll have a great one.
- The risk: for example, if you invest in a company then you never know what the future holds. Will it grow or go bankrupt? Either way, you have to make the right decision. You can predict the future easily on our Baltic stock exchange but it’s much more difficult on the bigger markets.
- Dealing by day aka keeping a short position – you need a big starting capital for that and there is a high risk of losing a lot.
Who do you recommend to keep an eye on in the investment world? Why?
You should keep an eye on the investor who has similar goals to you. In the bigger picture: Jaak Roosaare, Robert Kiyosaki, M.J Demarco, Seppo Saario, Warren Buffet etc. You have to find out why and how they invest. It’s important to learn from others’ and your own mistakes. Check Twitter because there’s a lot of useful information there about the USA stock market that can be used to predict the near future. For example, Donald Trump’s tweets changed the prices of some stocks.
What’s the first step one should make to get into investing?
Realise that investing is not a rocket science. It’s a common misbelief that only successful people invest but it’s actually meant for everyone. Firstly, learn the basics, read a lot and just take the leap e.g. open an investing account or ask for advice from your bank. You must understand why and what you’re doing.
Do you think that today’s youth knows a lot about financial freedom and how to achieve it?
I think they’ve heard a lot about it but it’s another thing how many of them actually do it. I believe that they know the words ‘financial freedom’, ‘investing’ etc. I strongly recommend everyone to find out more about it and start reading “Rikkaks saamise õpik”. I’m sure our generation is more active and wiser.
It’s a road on its own to becoming financially free. There are two ways of thinking:
- R.Kiyosaki – you put some money aside every month and then buy real estate or stocks to make passive income. If your income surpasses your expenses then you’re financially free and can quit your 9 to 5 job.
- M.J.Demarco – create your own company, raise and sell it. Invest the profit into low risk instruments which will generate profit for you.
It’s your own choice which way you prefer to go.
Where do you find information about investing (connections, courses etc)?
Since I only operate on the Baltic Stock Exchange right now, I find information through analysing data and reading Äripäev. It’s such a small market that you can spot every change. Overall, my information comes from the Estonian Investment Club which I’m a member of as well. I was given the young investor scholarship prize which makes me eligible to attend all the club’s events every two weeks. It’s an open community and everyone can join. They give a lot of good tips that are useful in real life. The topics are interesting and versatile. I strongly suggest everyone to join. I receive information about the training courses and seminars by email, on Facebook and from other people.
Usually they’re pretty expensive but studying is expensive anyway. I’m sure it’ll pay off in the future. Keep yourself posted, set your goals and you’ll find the information that you’re looking for.
What are your investment plans/goals for the next 1-3 years?
My plans are quite modest. I’ve adapted MJ. Demarco’s way of thinking so I will be focusing on entrepreneurship. I put some money aside every month for investing as well but these amounts are relatively small. My goal is to earn profit which I can later invest into stocks through creating my own enterprise. I will definitely keep an eye on the investment portfolio just to see whose stocks go up and which ones drop. I will read articles and analyse different companies’ financial reports and see what are their goals, the amount of dividends that are paid out and what’s the financial analysis like. The goal is to keep my portfolio in profit and move onto the US markets in the upcoming years.
Why did you create the EBS investment club? Why do you think it has never been done before?
Because I want to help people with investing. I know many have researched it and know a little and some even actively invest. It would be a great opportunity to come together, encourage each other, show how the analyses work, practice, share tips and experience and support each other. I want to create a good atmosphere for the beginners to start investing. I’ll definitely carry out a sample purchase and show how the buying process works and we’ll follow it throughout the weeks. The main goal is to create a welcoming environment and plant an investment seed in the participants.
I believe that attending a business school, studying entrepreneurship, business management and everything else related to business is the reason why I created this club. Investing is a part of it and I think it’s a great opportunity to learn from it. After all, you learn the most by teaching others. Of course, we can make new friends as well. Basically the reasons behind it are to find new connections, small investors, have a good time and learn so that you wouldn’t have to waste money on attending expensive seminars.
Who’s welcome to join the club?
The registration is closed for now. If someone has a really good reason for joining, we’ll look through their profile, goals and make a decision. We mostly welcome beginners and people who have little experience in investing and small investors, who know how things work but want to learn more about it. We also welcome the ones who could give a good example and have some useful tips to share. The main focus, though, is on the beginners and the learning process. Bigger and more experienced investors wouldn’t really have much to do in our lessons but all kinds of help is welcome.
Our meetings will probably take place on Thursday evenings, the first, second and fourth week of the month. There will be a small home assignment for the fourth week. We will start in February. There will be a new topic every month which we will study, follow and analyse.
Editor: Kärt Mättikas
Translator: Triin Tikk
Picture: Randy Padar