A few golden tips for making good investments
Investment may fall within the broad category of commerce but it is every bit an art. A Motley Fool staff writing for The Motley Fool has put together a rich assortment of ideas on the art of investment – altogether 8 tips for making good investments. There are gems of thoughts to choose from.
- Many like to say that they would act greedily in a fear-ridden market, but this is actually far easier said than done.
- Markets meet a phase of stiff resistance at least once a year and there is bound to be a recession every 10 years.
- Much like the arena of tennis, investing novices should keep themselves free of errors while masters should look for their next brilliant move.
- No market pundit knows how market will shape up in the short run.
- Show more faith in an investor who willingly accepts his mistakes rather than one who boasts about his achievements.
- There will be 7 (optimistically speaking) and 10 (practically speaking) recessions spread over the next 5 decades.
- Investment modules taught in schools amount to nothing as theories alone rarely work in the investment world.
- Deter from following the market news. It has got a big appetite for misleading evidences.
- At least one top-draw company hides behind ghost assets when it has turned bankrupt in reality.
You can read the full article here.
A few more tips to consider
I think that The Motley Fool has come up with a few commendable suggestions. A smart investor always looks to be one step ahead of others. Sometimes, fundamental analysis may work. At times, market news can also aid you and most of the times, sticking to those properties which are trading below their intrinsic value helps. Ideally, you should look for those properties which have showed sustained capital growth historically. Also, in my opinion, one should look to build his flock carefully and one by one, extending the portfolio by using profits alone as the capital for further investment.
How do you counter recessive phases? Do you save some of your borrowing capacity for these?