Investing, Success, Sanity, & Student Debt

“Who wants to pay someone to manage your money when the name of their occupation is BROKER. No thank you, never wanting to be broke is the reason I invest to begin with.”

-Giorgi Adamashvili

            A light-hearted approach to situations seems to be a way of life for Giorgi Adamashvili. He is a 24-year-old Georgian native, Baruch student, pursuing a Bachelors degree in International Business. Having only recently begun his stock market journey, his noteworthy achievements in less than a year give him imperative insights into advising other young college students interested into Wall Street. Taking previous classes together, our conversations always seemed to veer towards our stocks, the companies we were interested in, or exciting merges. When I proposed an interview on his successes, he jumped at the chance to share the knowledge he developed through personal experience. Sitting across from me while sipping a tall cup of steaming black coffee, the distinctive bitter aroma surrounds us as we discuss his beginning investments and the things he wish he knew before he began.

I question him curiously if he ever had a broker or advisor or if investing himself was always what he planned to do. He chuckled, “Who wants to pay someone to manage your money when the name of their occupation is BROKER. No thank you, never wanting to be broke is the reason I invest to begin with.” He continued on a more serious note, “Personally, I never really thought about having either a broker or an advisor. I wouldn’t say they aren’t (beneficial), but for a student with little income and lots of expenses, I decided the costs (for a broker or advisor) weren’t really something I wanted to pay for. I’m happy I decided to trust my instincts and my research; it hasn’t let me down so far!” he exclaims as he raised both hands with pointer and middle fingers crossed.

Moving on, I ask “(Did you invest) in increments or all at once? What would you recommend for someone who is just beginning?” Setting his coffee down in thought, he utters, “The first time (I invested), it was money that I had put aside from taking on extra shifts at work. I still remember the battle royale (that was) raging inside of me as to whether or not I was willing to give up that $100.00. Finally I flipped a coin. Less than a week later I added another $100.00 to my online wallet. (buying power) I have (progressively) added more and more money ever since. I think this is the best way for someone to get themselves comfortable with the highs and lows of the stock market. I think it would be terrifying and stressful to take everything you have and throw it all in (with no experience).” He looks over at the students studying next to us shaking his head at the thought.

Knowing the health of a company is really important; I push on to ask what he believes to be “an important marker for a companies health and why is that something that should be taken into consideration?” Picking up then setting his cup down without taking a sip, he tilts his head as he takes a couple seconds to ponder my question. “That’s a tough one actually. (There are) some pretty basic indicators you need to look out for when determining whether a company is healthy (and) worth an investment. Their most recent quarterly earnings is a great place to start, their return on equity, their net profit (or income), their revenue vs. expenses, as well as what they plan to do in the future to expand and grow. These are all things (you should care about because they are the) determining factors for what is going to increase the valuation of the company, which in turn increases the prices of their shares, and ultimately will either increase or decrease the capital you have invested by buying their stocks.”

Nodding my head in agreement I press him with my next issue, “do you currently have any debts, (if you do) how do you manage them while still putting money into investments?” Snickering at the seemingly silly question of whether he was in debt as a college student he exclaims, “I’m a college student, of course I have debt!” Rolling his eyes in a friendly manner, “Not as much as most but more than others. I have relatively low credit card debt, but I do have student loans. I have yet to begin paying on them because I am still currently attending. Once I graduate, I will continue to invest, I will continue to pay off my credit cards and I will then begin to pay off my student loans. It’s all a matter of balance. My monetary obligations are going to increase, but upon graduating my income should also be increasing if all goes as planned. Investing shouldn’t cut into your other responsibilities or livelihood. It’s meant to be a means of gaining capital not anxiety.”

Finally I ask him if there is any other advice or words of wisdom he would like to pass on to others who are either just beginning, or weary of dipping their toes into the investment pool. He smiles before beginning “Do it, don’t doubt yourself. Do your research, find a company or industry that interests you and figure out if they are worth the money you worked for. Whether you are ready today, tomorrow, or a year from now, you’ll never know for sure because investing will always carry risks. It’s not for everyone, that’s for sure. But for those who are willing to accept the possibility of loss, are willing put in the work and are interested in reaping the rewards, just do it.”