How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.

Investors should approach all investments with a healthy sense of skepticism. This can help keep you out of fraudulent stocks that masquerade as high-quality stocks. It will also keep you out of legally operated, but poorly managed, companies that promise more than they can possibly deliver.

If you are a new investor, you should also realize that losing patience can cause you to sell your best choices right before a big rise. All too often, investors buy a promising stock just as it enters a period of price stagnation. Even the best-performing stocks run into these unpredictable phases from time to time. They move mainly sideways in a wide range for months or years before their next big rise begins. (Stock brokers often refer to these stocks as “dead money.”)

If you lack patience, you run a big risk of selling your best choices in the midst of one of these phases, prior to the next big move upward. If you lose patience and sell, you are particularly likely to do so in the low end of the trading range, when stock prices have weakened and confidence in the stock has waned.

Stop worrying and invest with confidence when you read this FREE Special Report, How to invest in stocks: Canada investor advice on building a balanced stock portfolio

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How To Invest Post Archives

How Does Investing Work Best When High Portfolio Returns are the Goal?

How Does Investing Work Best When High Portfolio Returns are the Goal?

How does investing work best? When you have an understanding of these key investment principles and strategies
How does investing work best for long-term gains? Smart investors balance aggressive and conservative investments in their portfolio with their investment objectives, and the market outlook. Above all, they… Read More

10 keys to finding undervalued stock picks

10 keys to finding undervalued stock picks

Here’s how to find undervalued stock picks — and maximize your long-term profits.
One of the key principles of successful investing is to buy high-quality “value stocks”: They’re undervalued stock picks; i.e.,  they are reasonably priced, if not cheap, in relation to their sales, earnings and assets… Read More

How Do Stock Market Prices Change? Two Reasons to Know

How Do Stock Market Prices Change? Two Reasons to Know

How do stock market prices change? The two most common reasons are surprisingly random
For many investors there’s no greater mystery than why stock market prices change.

A vast number of factors can affect the price of any stock you buy. That’s why investors have a natural… Read More

The best choices for BCE and Bell Aliant shareholders

The best choices for BCE and Bell Aliant shareholders

This special edition of “Best Canadian Stocks”  was posted in 2014 and focused a key acquisition for BCE at the time – the remaining shares of Bell Aliant Inc.
BCE INC. (Toronto symbol BCE; www.bce.ca) has agreed to pay $3.95 billion in cash and stock for the 56% of… Read More

7 ways Canadian stock options will cost you money

7 ways Canadian stock options will cost you money

Canadian stock options can generate a lot of money for your broker, but here’s seven ways they can cost you even more
Trading Canadian stock options can generate a lot of brokerage commissions, which is why some young, aggressive brokers recommend them for their clients. That’s despite… Read More

Investing in stocks: The hidden drawbacks of split-share corporations

Investing in stocks: The hidden drawbacks of split-share corporations

Split-share corporations come with inherent drawbacks that can hand investors unexpected and unwelcomed costs before they’d planned
Split-share corporations: they’re just one of the areas that Pat McKeough’s Inner Circle can tap into our investment research. Members also get to ask investment questions of Pat and his… Read More

Tax shelters in Canada: 3 choices you need to know about

Tax shelters in Canada: 3 choices you need to know about

Tax shelters in Canada that can help you save money when you use them correctly
Tax shelters in Canada aim to reduce or eliminate your tax liability.

Tax shelters are legal investment vehicles that let investors pay less tax. Some are risky and should be avoided, like… Read More

What is market timing theory?

What is market timing theory?

Market timing theory attempts to interpret and detect buy and sell signals in trading patterns and history
Political tensions in Washington following the 2016 U.S. elections have reignited interest in marketing timing theory. The practice of market timing consists of coming up with and acting on a.. Read More

High-yielding REIT focuses on German properties

High-yielding REIT focuses on German properties

Pat McKeough responds to many requests from members of his Inner Circle, looking for specific advice on the stock market, investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner… Read More