Biscuits Aren't Enough

I've been interested in stocks ever since I was a kid. The first stock I ever bought (at age 12) was a restaurant chain. I bought it (through my parents) because I liked its biscuits and because it seemed like new units were popping up everywhere. Well, I got lucky - my initial investment doubled within a year or so. I got complacent and didn't pay attention (I was in middle school, after all), and the next thing I knew, it was trading below a dollar and shortly thereafter went out of business entirely. I learned a couple of important lessons: (1) Good products (such as biscuits) don't necessarily make good companies or good stocks. (2) You must always be vigilant over your investments. Although you may have a profit today, that doesn't mean you can't be broke tomorrow.

- T.L., online

The Fool Responds: Amen. You were fortunate to learn so much while still young. Other young people might want to read our "Motley Fool Investment Guide for Teens" by David and Tom Gardner with Selena Maranjian (Fireside, $15).

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