How to Start Investing Today

• Price = what you pay.
• Value = what you get.

You lose money when the price you pay does not match the value you're getting. For example, when you're paying high interest on credit card debt or spending on stuff you hardly use.

You gain money when you look for opportunities to get more value at a lower price: For example, buying quality merchandise when it is marked down.

Warren Buffet built his wealth by getting interests to work for him.

• Many people fail because of liquor and borrowed money. You can make a lot of money without borrowing.
• Avoid credit cards, because the interest rates are very high on them. “Sometimes they are 18 percent. Sometimes they are 20 percent. If I borrowed money at 18 or 20 percent, I’d be broke.”

Unfortunately, there's no P/E ratio set in stone that makes a stock a buy if it's below, or a sell if it's above.

Often value investors and growth investors will look for different things in a P/E ratio. 

• Value Investors - the lower the P/E ratio the better.
• Growth Investors - are much more likely to buy stocks with higher P/E ratios, believing the superior earnings growth more than justifies the higher cost.