Werlinich Asset Management, LLC
A lifelong resident of Westchester, Greg Werlinich is the founder and President of Werlinich Asset Management, LLC (WAM), an independent, fee-only investment advisory firm. WAM was formed in 1997 and currently works with a select group of investors, leaving the AUM at around $70 million. Limiting the number of people he works with allows Greg to give each client the attention and care they deserve. As a fiduciary, Greg has a legal obligation to put the needs and interests of his clients above his own. WAM is almost unique in the industry because he personally owns almost every single stock that he purchases for his clients.
Greg graduated from Princeton University in 1986 with a BA in Politics and from the Stern School of Business in 1996 with an MBA in Finance. He is the co-author of "The Black Book On Personal Finance", and today he continues to educate his readers about personal finance by writing a monthly newsletter, a blog and a daily twitter-feed. Greg has been quoted giving financial advice in a number of national publications, and he has made more than a dozen appearances on the Fox News channel’s finance segments. For the past two and a half years, Greg has served as a member of the Board of Directors of the Food Bank for Westchester. An active and competitive swimmer throughout his life, Greg is a nationally-ranked Masters Swimmer.
BA, Politics, Princeton University
MBA, Finance, NYU Stern School of Business
Assets Under Management:
Why I am an Advisor - Greg Werlinich
What Differentiates Me - Greg Werlinich
- See all videos on Guidevine »
If you are new to investing, and just starting out with a brokerage account, you should stick with a cash account, which means that you are limited in your trades to the amount of cash you maintain in the account. This is by far the more prudent approach. On the other hand, going on margin means that you would be using the securities in your account as collateral to borrow some amount of money against the value of those shares. This is called creating leverage. An example of this would be if you had $100,000 worth of securities, you broker may allow you to borrow up to $50,000 to be used to buy more securities. The broker will then charge you some interest rate, perhaps around 7% or 8%, on the outstanding balance. Now you have $150,000 “gross value” in your account. The upside is if you can generate a 10% return on the borrowed money, you’re ahead of the game. If, on the other hand, the market goes against you and your original $100,000 becomes $80,000, you will likely be faced with a “margin call”, during which you’ll have to either add more stock to the account to bring your value back to $100,00, or you’ll have to sell enough stock to raise sufficient cash to reduce your leverage. As you can tell, using margin is a very risky venture and one that should be left to the experts.
If you want no risk to principal and you know you will need the money in three years, I would suggest placing the money in a group of laddered CDs with your bank. Stagger the maturities between 3 months, 6 months, 9 months and 12 months. Then keep rolling the funds over until the final maturity matches your downpayment needs. Best of luck to you.
It sounds like you've gotten off to a good start already. Perhaps you would like to look at some other index funds like the SPY or DIA or VTI to give you broad equity exposure. There are also broad international ETFs, bond ETFs and many sectors ETFs. Whatever you decide, go with index funds from providers like like Vanguard, State Street, Fidelity, etc that offer low expenses and are highly liquid. Best of luck to you.
There is no "minimum" investment with which to start investing while in college. It all depends on how much available cash you have. But whatever the dollar amount, it's probably smarter, and less expensive, to use index funds like SPY. The best case scenario would be to invest some amount on a regular basis, and split the money between a few different index funds, thereby spreading the risk a bit. I think it's great you want to start investing at such an early age. Best of luck to you.
Yes, anyone can buy and sell stocks in the stock market. All that is needed is to open a brokerage account, either on your own, through a discount brokerage firm like Charles Schwab or TD Ameritrade, or via a full service broker like Goldman Sachs or Morgan Stanley, or with an independent financial advisor. If you are going to do this on your own, without any professional help, you may be better off buying ETFs or mutual funds to help mitigate the risks of owning individual securities. If you choose ETFs or mutual funds, you may want to consider a diversified basket of very low cost index funds. I hope this has been helpful. I wish you all the best. Yes, anyone can buy and sell stocks in the stock market. All that is needed is to open a brokerage account, either on your own through a discount brokerage firm like Charles Schwab or TD Ameritrade, or via a full service broker like Goldman Sachs or Morgan Stanley, or with an independent financial advisor. I hope this has been helpful. I wish you all the best.