Sam Tabar says that no one should look back on their life years from now and have the regret that they didn’t start investing. Everyone should start investing today according to him. No matter what path you take to investing it is necessary that you start ASAP and also that you have a well diversified portfolio. When you are just getting your start in the world of investing you can get fascinated by a hot stock and put all your cash into it. This is not wise because all good things must come to an end and all hot stocks come back down to earth at some point. Don’t get carried away.
Sam Tabar also says that social entrepreneurship is on the rise and for some it may be the best way to start investing. Social entrepreneurship is when you give your money to a worthy company that needs funds to operate in exchange for part of their profits. There are many worthy small businesses out there who need a helping hand. It also allows you to have a personal relationship with the business owners. Sam Tabar has used this model of investment before when he formed a relationship with the company THINX. For every pair of underwear that THINX sells some of the proceeds are donated to a company that provides sanitary goods to young women living in Africa.
From Twitter, it’s clear that Sam Tabar is not a fan of commodity trading because he feels it represents a great risk for new investors. There is a much higher degree of volatility within the commodities market that does not exist in traditional areas of investing like mutual funds and the stock market. Commodities trading takes much more research and furthermore, it is common to absorb substantial short term losses before you can pull ahead in commodities.