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 to profitably pick stocks from TSX listings

How to profitably pick stocks from TSX listings

Our investing recommendations are the same for TSX listings as they are on other stock exchanges—here’s how to choose wisely
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How to Buy International Stocks to enhance and diversify your portfolio

How to Buy International Stocks to enhance and diversify your portfolio

For Canadian investors wondering how to buy international stocks, ADRs and international ETFs may be a safer option than buying on foreign exchanges
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What do playing the stock market and chess have in common?

What do playing the stock market and chess have in common?

Successfully playing the stock market — like chess—is never about going for broke.
Many investors like to use analogies from sports or the military to describe their investment approach, so they’ll often use the phrase playing the stock market. But if I had to compare our… Read More

How do stocks work in the market and in your portfolio?

How do stocks work in the market and in your portfolio?

How do stocks work? It’s time to learn how stocks work so you boost your portfolio returns
Have you ever wondered, “How do stocks work?”

Stocks are financial instruments that let you hold an ownership stake in a publicly traded company. A stock you own gives you… Read More

How to Invest in Canadian Stock Market Holdings for Success

How to Invest in Canadian Stock Market Holdings for Success

Understanding how to invest in Canadian stock market holdings will help you diversify your portfolio, making the best selections possible.
Before you begin investing in the Canadian stock market, you’ll have an important choice to make: Do you use a discount broker and take advantage of… Read More

How to Profit From Dual-Class Shares of Canadian Stocks

How to Profit From Dual-Class Shares of Canadian Stocks

When it comes to dual-class shares, voting shares have certain advantages over non-voting shares
Aside from specific investments (such as U.S. and Canadian stocks, income trusts or exchange-traded funds), our Inner Circle members ask us a wide range of investment questions. For example, I’ve been asked… Read More