Risk, reward, and diversificationA way of reducing the risk and variances in your portfolio returns by buying a variety of stocks across different industries, market caps, etc. are the most important concepts to understand before you start your portfolio. They are factors in all investment decisions. You must learn more than the textbook definitions of Read More…
To measure your success of diversifying, several calculations have been developed to provide an indication of how well your portfolio is performing in terms of its variance and its return. There is more than 1 way to get a 10% return. Graph 1 below shows a smooth portfolio increase upwards at a 10% return over Read More…
With so many stocks out there, what does the new investor buy? If you have plenty of time and wish to become an information and opinion junky, you could spend thousands of hours reading all of the newspapers, websites, financial blogs, discussion boards and newsletters out there that cover just about every single one of Read More…
Investing in “what” you know based on “how much” you know can provide an excellent return and a higher level of comfort. As an example, the legendary investor Warren BuffetChairman and CEO of Berkshire Hathaway, and generally regarded as the greatest buy and hold investor of the last 30 years. has amassed his fortune without Read More…
Peter LynchPast portfolio manager of Fidelity Magellan, which became the largest mutual fund in the 1990s., another globally respected investment genius, also embodies a solid – not exotic – investing strategy. After graduating from Boston College (1965), Lynch was hired as an intern at the company that came to be forever linked with his name, Read More…
Once you get out of the shopping malls, don’t forget to make sure you are diversifying. Buying a shoe company, a hat company, a jean company, a sock company, and a dress company is NOT exactly what we mean by diversificationA way of reducing the risk and variances in your portfolio returns by buying a Read More…
Summary It’s time to decide on how you’d like to construct your portfolio. Whether you decide to invest virtual money or real funds, you should now have a basis to create your own thoughtful plan and strategy. Using your virtual portfolio and trading ability, you can test your strategy and “tweak” it, if necessary, to achieve Read More…
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