Picking Sound Investments
 

Picking Sound Investments

on

  • 250 views

http://www.profitableinvestingtips.com/investing-trading/picking-sound-investments ...

http://www.profitableinvestingtips.com/investing-trading/picking-sound-investments

Picking Sound Investments

The keys to picking sound investments are fundamental analysis and timing. Fundamental analysis reveals the intrinsic value of a stock and its margin of safety. Technical analysis reveals current market sentiment and often allows investors to buy or sell stocks at the optimal price.

Picking Sounds Investments for the Long Term

Rate of Return on Investment

Over the long term an investor needs to make money, more than the rate of inflation, and enough to justify the effort involved in picking stocks and managing a portfolio. Sound investment advice is to have at least part of your portfolio in stocks that appreciate every year, dividend stocks with a good return, and stocks with a strong margin of safety that will protect your investment during hard economic times. The miracle of compounded returns can turn a hundred dollar a year investment into $32,000 over an investment lifetime with a ten percent per year appreciation. The key to making this work is picking sound investments in strong companies with the ability to find and market new products year after year after year.

Versus Rate of Interest on Debt

With credit card interest rates in the 18% range or worse it makes excellent sense to rid yourself of such debt before picking sound investments in stocks. However, the practice of picking stocks, buying stocks, and managing a stock portfolio takes time to learn. An alternative route is to practice picking sound investments and putting a portion of available cash into these investments while working primarily to reduce burdensome debt. By the time that you have gotten rid of credit card debt you will hopefully have learned something about picking sound investments for the long term.

What Does the Future Hold?

Anyone who truly saw the future would have invested heavily in Microsoft the moment it became public in 1986. The stock is more twenty thousand times as valuable today as it was when first issued. This has to do with the rise of the personal computer, associated software, and computing services. The same could have been true for anyone who invested in Apple the moment that Steve Jobs came back. Picking sound investments often has to do with recognizing the potential in a growing industry and doing the research necessary to discover which company will beat all of the others in market penetration, sales, and profits. Recognizing product potential and recognizing the ability of a company to essentially set its own price is extremely valuable in picking sound investments.

When to Get in and When to Get Out

Years ago the retail giant, Sears, was on its last legs. It became a penny stock and was bought by Kmart in 2005 and became Sears Holding Company. Most investors didn’t think much of the new company’s prospects. The problem was that investors were valuing Sears as a retailer. When valued as a r

Statistics

Views

Total Views
250
Views on SlideShare
250
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Picking Sound Investments Picking Sound Investments Presentation Transcript

  • Bywww.ProfitableInvestingTips.comPICKING SOUND INVESTMENTS
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsTHE KEYS TO PICKING SOUNDINVESTMENTS ARE FUNDAMENTALANALYSIS AND TIMING
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsFUNDAMENTAL ANALYSIS REVEALSTHE INTRINSIC VALUE OF A STOCKAND ITS MARGIN OF SAFETY.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsTECHNICAL ANALYSIS REVEALSCURRENT MARKET SENTIMENT ANDOFTEN ALLOWS INVESTORS TO BUYOR SELL STOCKS AT THE OPTIMALPRICE.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsPICKING SOUNDSINVESTMENTS FORTHE LONG TERM
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsRATE OF RETURN ONINVESTMENT
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsOVER THE LONG TERM ANINVESTOR NEEDS TO MAKE MONEY,MORE THAN THE RATE OFINFLATION, AND ENOUGH TOJUSTIFY THE EFFORT INVOLVED INPICKING STOCKS AND MANAGING APORTFOLIO.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsSOUND INVESTMENT ADVICE IS TOHAVE AT LEAST PART OF YOURPORTFOLIO IN STOCKS THATAPPRECIATE EVERY YEAR,DIVIDEND STOCKS WITH A GOODRETURN, AND STOCKS WITH ASTRONG MARGIN OF SAFETY THATWILL PROTECT YOUR INVESTMENTDURING HARD ECONOMIC TIMES.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsTHE MIRACLE OF COMPOUNDEDRETURNS CAN TURN A HUNDREDDOLLAR A YEAR INVESTMENT INTO$32,000 OVER AN INVESTMENTLIFETIME WITH A TEN PERCENT PERYEAR APPRECIATION.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsTHE KEY TO MAKING THIS WORK ISPICKING SOUND INVESTMENTS INSTRONG COMPANIES WITH THEABILITY TO FIND AND MARKET NEWPRODUCTS YEAR AFTER YEARAFTER YEAR.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsVERSUS RATE OFINTEREST ON DEBT
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsWITH CREDIT CARD INTERESTRATES IN THE 18% RANGE ORWORSE IT MAKES EXCELLENTSENSE TO RID YOURSELF OF SUCHDEBT BEFORE PICKING SOUNDINVESTMENTS IN STOCKS.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsHOWEVER, THE PRACTICE OFPICKING STOCKS, BUYING STOCKS,AND MANAGING A STOCKPORTFOLIO TAKES TIME TO LEARN.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsAN ALTERNATIVE ROUTE IS TOPRACTICE PICKING SOUNDINVESTMENTS AND PUTTING APORTION OF AVAILABLE CASH INTOTHESE INVESTMENTS WHILEWORKING PRIMARILY TO REDUCEBURDENSOME DEBT.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsBY THE TIME THAT YOU HAVEGOTTEN RID OF CREDIT CARD DEBTYOU WILL HOPEFULLY HAVELEARNED SOMETHING ABOUTPICKING SOUND INVESTMENTS FORTHE LONG TERM.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsWHAT DOES THEFUTURE HOLD?
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsANYONE WHO TRULY SAW THEFUTURE WOULD HAVE INVESTEDHEAVILY IN MICROSOFT THEMOMENT IT BECAME PUBLIC IN 1986.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsTHE STOCK IS MORE TWENTYTHOUSAND TIMES AS VALUABLETODAY AS IT WAS WHEN FIRSTISSUED.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsTHIS HAS TO DO WITH THE RISE OFTHE PERSONAL COMPUTER,ASSOCIATED SOFTWARE, ANDCOMPUTING SERVICES.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsTHE SAME COULD HAVE BEEN TRUEFOR ANYONE WHO INVESTED INAPPLE THE MOMENT THAT STEVEJOBS CAME BACK.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsPICKING SOUND INVESTMENTSOFTEN HAS TO DO WITHRECOGNIZING THE POTENTIAL IN AGROWING INDUSTRY AND DOINGTHE RESEARCH NECESSARY TODISCOVER WHICH COMPANY WILLBEAT ALL OF THE OTHERS INMARKET PENETRATION, SALES, ANDPROFITS.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsRECOGNIZING PRODUCT POTENTIALAND RECOGNIZING THE ABILITY OFA COMPANY TO ESSENTIALLY SETITS OWN PRICE IS EXTREMELYVALUABLE IN PICKING SOUNDINVESTMENTS.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsWHEN TO GET IN ANDWHEN TO GET OUT
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsYEARS AGO THE RETAIL GIANT,SEARS, WAS ON ITS LAST LEGS.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsIT BECAME A PENNY STOCK ANDWAS BOUGHT BY KMART IN 2005AND BECAME SEARS HOLDINGCOMPANY. MOST INVESTORS DIDN’TTHINK MUCH OF THE NEWCOMPANY’S PROSPECTS.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsTHE PROBLEM WAS THATINVESTORS WERE VALUING SEARSAS A RETAILER.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsWHEN VALUED AS A REAL ESTATECOMPANY THE COMPANY WASMUCH MORE VALUABLE. WHEN THEMARKET CAUGHT ON TO THE HUGEMARGIN OF SAFETY IN REAL ESTATETHAT SEARS HELD THE STOCKSOARED.
  • http://www.profitableinvestingtips.com/investing-trading/picking-sound-investmentsRECOGNIZING VALUE BEFORE THEREST OF THE MARKET DOES ISOFTEN A KEY TO LEARNING HOW TOINVEST AND PICKING SOUNDINVESTMENTS.