Experience Said One Thing, Her Adviser Another

Talk-show host Diane Rehm wanted to jump in when Google went public in August 2004 for $85 a share, but her financial planner told her, "No, it's too risky," she recalls.

When Google shares reached $428 last spring, she threw her financial planner's advice to the wind and bought some. She won't say how much she invested, only that it's not enough to ruin her if her hunch proves wrong. It hasn't so far.

Google shares surpassed $500 for the first time Thanksgiving week, though they've fallen back to $480.80 on Friday. That translates to a paper gain for Rehm of between $50 to more than $70 a share. But sticking in her mind is the $400 or more she could have gained if she'd followed her instincts and bought when the stock was less than $100 a share.

"My adviser now says he wishes he'd followed my advice himself instead of overruling me," she says.

Rehm was drawn to Google's stock by her use of the company's search engine. She's had similar experiences buying stock in Chico's, a woman's clothing chain where she often shops. Ditto with shares of Allergan, the maker of Botox, which she takes to treat a vocal chord condition. When she started to hear of women using the compound for cosmetic reasons, she recalls, she said, "Bingo," and bought it.

But don't mistake Rehm for a big risk-taker. She's not.

"My father, who's been dead for years, was totally caught up in stocks and lost lots when Truman was elected," she says, a situation that's remained vivid for her. So she doesn't risk more than she can afford to lose. And she does homework before investing.

"Listen to your instincts, follow your heart, but don't gamble," she says. "Have some rationale for what you do. Watch and read and listen to the news."

-- K.D.