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

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

5 powerful long-term investment strategies for higher returns

5 powerful long-term investment strategies for higher returns

These long-term investment strategies will accelerate your long-term investment results
Here are five long-term investment strategies that we are certain will enhance your long-term investment results. They’ve long been part of the advice we give in our investment services and newsletters, including Canadian Wealth Advisor, our… Read More

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 picking individual overseas stocks
We believe most investors could benefit from holding some foreign and international investments in their portfolios for added diversification. And growing markets like… Read More

Investment Options in Canada for a Conservative Approach

Investment Options in Canada for a Conservative Approach

The best investment options in Canada include high-quality stocks with a history of sustainable dividends.
Wealth isn’t made by making rash investment decisions. It’s built over decades. Furthermore, investing is relative, not absolute. It’s an art, not a science. Every stock offers a balance of risk… Read More

How to put your money in the Canadian stock market

How to put your money in the Canadian stock market

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 the lower commission rates? Or do you deal through a traditional, full-service broker and pay extra for service and… Read More

Capital gains in Canada: How to do smart tax-loss selling

Capital gains in Canada: How to do smart tax-loss selling

Use tax-loss selling to offset your taxable capital gains in Canada.
Tax-loss selling (or tax-loss harvesting) occurs when you deliberately sell a security at a loss in order to offset capital gains in Canada.  You can then use these losses to offset your taxable capital gains.

In… Read More

Safer Stock Investments to Cut Portfolio Risk During Inflation

Safer Stock Investments to Cut Portfolio Risk During Inflation

If you want to hold safer stock investments for your portfolio, then diversifying and using our three-part approach will help. That could also help to reduce the impact of inflation.
In economic terms, inflation is the steady increase in prices for goods and services that accompanies… Read More

Theme Investing: Trendy Stocks Will Not Always Lead to Profits

Theme Investing: Trendy Stocks Will Not Always Lead to Profits

Theme investing, particularly when snatched from the latest headlines, may seem appealing—but more often than not will lead to poor returns
Theme investors zero in on something that’s going on in the world—in business, politics, technology or society as a whole—and try to cash in… Read More

Safer Investments for Retirees: How to Retire With Less Stress

Safer Investments for Retirees: How to Retire With Less Stress

Generally we see safer investments for retirees as ones that focus on a long-term conservative strategy and make calculated use of RRSPs and RRIFs to boost returns
Retirement planning is becoming more difficult for Canadians because they’re living longer and need larger retirement nest eggs. This… Read More