Investment Strategies 03 (Jul 13 - Mar 19)

[winston]

The Two Tricks to Building Wealth with Stocks

You’ll keep the losers out of your home-run portfolio…

The two "tricks" to building wealth through a stock portfolio are:
1. Buy stocks that have a wide audience for their products, preferably an audience/customer base that will keep growing.
2. As your stocks are going up, add to them. Buy more shares (yes, at higher prices) and reinvest your dividends (if the company pays dividends) back into more shares of your winners.

Source: Money Morning

https://moneymorning.com/investing/how- ... portfolio/

[winston]

Three Keys to Finding Your Next 200%-Plus Winner

1. Look for game-changing industry trends...
2. Look for smaller, rapidly growing businesses that participate in these trends and
3. Companies that are in a strong financial position.

Source: Daily Wealth

[winston]

Seven Strategies For Investing At Market Peaks

Source: The Edge

https://www.theedgesingapore.com/seven- ... 6-87358173

[winston]

The Four Fundamental Skills of All Investing

by Morgan Housel

1. The ability to distinguish “temporarily out of favor” from “wrong.”
2. The willingness to adapt views you wish were permanent.
3. The ability to be comfortable being miserable.
4. The ability to distinguish when analytics vs. psychology is necessary.

Source: Collaborative Fund

http://www.collaborativefund.com/blog/t ... investing/

[winston]

Developing a Strategy

1. Equities for the long term and high quality bonds/cash for short-term cash needs:
2. Research driven investment process:
3. Control your emotions:
4. Asset allocation determines long-term returns:
5. Mean reversion exists:
6. Diversification:
7. Select high quality investments at a reasonable cost:
8. Develop a written investment plan:

Source: Investopedia

http://www.investopedia.com/advisor-net ... z4segIt3tq

[winston]

5 Steps to Becoming a Better Investor

by Eric C. Jansen

1. Link Your Investments to Your Goals
2. Reassess Your Plan and Goals Periodically
3. Understand the Difference Between Risk Tolerance and Risk Capacity
4. Diversify Your Portfolios and Accounts
5. Remove Opportunity for Human Error

Source: Investopedia

https://www.investopedia.com/advisor-ne ... yptr=yahoo

[winston]

Important Things to Look for in a Turnaround Stock

by Tom Gentile

Here are important things to consider:-

1. Is there a new management team in place? Or are the same folks who got the company into the mess still around?

2. Is the company going to produce and introduce a new product, technology, or service? And do you expect it will lead to better sales growth?

3. Are the people in charge making appropriate decisions on operations and overhead: cutting jobs, reducing costs, streamlining operations?

4. And always pay attention to a company’s debt. If the company’s bonds are trading at a discount, it may be more trouble than its worth. The company has to satisfy its debts to others before it can provide value to its shareholders.

Source: Power Profits Trade

[winston]

Patience Is Your Biggest Investment Asset

by Rebecca Lake

The study found that overall, global investors lean toward short-term investing, expecting to hold investments for a little over three years on average.

Less than a fifth of investors said they held investments for at least five years.

Biases, or the tendency to lean a certain way, can unconsciously influence your decision-making.

Recency bias, for example, can lead you to believe that an investment will perform a certain way based on its most recent history.

Loss aversion bias trains your mind to seek to avoid losses, rather than pursue equivalent gains.

He advises impatient investors to "focus on the next 20 years, not the next 20 minutes."

Source: U.S.News & World Report

https://finance.yahoo.com/news/auto-sal ... 18336.html

[winston]

The Best, Safest, and Surest Way to Get Rich in Stocks

By Porter Stansberry

No. 1: Make sure you truly understand how much risk you're taking

No. 2: Out of all the studies I've read about portfolio risk-management strategies, no tool is more powerful than risk-based position sizing.

No. 3: Build your portfolio around high-quality, capital-efficient investments.

Source: Daily Wealth

http://www.dailywealth.com/3756/the-bes ... -in-stocks