Ideas on Successful Investing
When you look at a stock market like the one we’re seeing right now, it can get pretty discouraging. However, there are some things you can do now — even in a recession and with a bear market — to earn a decent return and find yourself engaging in successful investing. Here are three different articles that offer some ideas on successful investing:
1. Oblivious Investor: Diversifying with Individual Stocks
I really liked this look at diversification and individual stocks. Stock picking can be a risky business, and if you want to do it successfully, it is important that you include diversity. And remember: diversity in your investment portfolio means that your sectors need to be diverse as well.
2. Motley Fool: Snap Back With These Stocks
If you’re going to engage in stock picking, make sure you do it intelligently. The Motley Fool suggests that you look at free cash flow (FCF) and return on equity (ROE) when determining whether a certain investment is a good stock pick. You want to make sure that the company has good cash flow and doesn’t have a great deal of debt. And, of course, ROE can offer insight into overall profitability of a company.
3. Yielding Wealth: The 3 Most Important Things to Remember When Investing
First of all, disclosure: This is my personal finance blog. However, I didn’t write this post. This is a guest post from Wade Slome, who has some great advice on investing. His 3 most important things to remember when you are investing are:
- Invest objectively (not emotionally).
- Align your time horizon with your risk tolerance.
- Be selective when picking stocks.
This investment advice can help you formulate a plan to become a better investor. Indeed, all three of the above posts are related to developing a solid investment plan and then sticking to it.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
