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.


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Learn everything you need to know in ‘The Canadian Guide on How to Invest in Stocks Successfully’ for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.



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.


How Successful Investors Get RICH

Learn everything you need to know in ‘The Canadian Guide on How to Invest in Stocks Successfully’ for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.



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How To Invest Library Archives

Q: Pat, what do you think about the investment merits of NFTs, or “non-fungible tokens”? I’ve been hearing a lot about them lately. Thanks.

A: NFTs, or “non-fungible tokens,” are an emerging, but highly speculative, investment. They’re focused on the belief that there is investment value in the relative scarcity of a cryptocurrency like bitcoin.

(Fungibility is the ability of a good or asset to be interchanged with other individual… Read More

Use a wide range of tools

Here’s an Excerpt from a recent issue of Advice for Inner Circle Pro Members:
“One form of technical analysis is the Relative Strength Indicator (RSI). It charts a stock’s current and historical strength, or weakness, based on its closing prices over a recent trading period. Specifically,… Read More

Q: Pat, what do you think of me holding the BMO Low Volatility Canadian Equity ETF to lower the overall volatility of my portfolio? Thanks.

A: The BMO Low Volatility Canadian Equity ETF, $33.51, symbol ZLB on Toronto (Units outstanding: 72.8 million; Market cap: $2.4 billion;
www.etfs.bmo.com), provides exposure to a low beta-weighted portfolio of Canadian stocks. The aim is to reduce your exposure to market volatility.
The ETF selects 40 or… Read More

Q: Hi, Pat. I’m looking for your recommendation on AirBoss of America (BOS-T)? The stock has jumped since the COVID-19 crisis started. Do you see more gains ahead? Thanks.

A: AirBoss of America Corp., $18.70, symbol BOS on Toronto (Shares outstanding: 26.9 million; Market cap: $516.9 million; www.airbossofamerica.com), makes rubber-based products used in the automotive, heavy industry, construction and infrastructure, oil and gas, and defence industries.
AirBoss is headquartered in Newmarket, Ontario, and operates manufacturing… Read More

Dividend Advisor Hotline – Friday, February 19, 2021

INTACT FINANCIAL CORP., $144.33, Toronto symbol IFC, is a buy.

The company is Canada’s largest provider of property and casualty insurance. Intact insures more than five million individuals and businesses. Its major brands are Intact Insurance, Canada BrokerLink and belairdirect.

Intact last raised its quarterly dividend by… Read More

They’re just an aid

Here’s an Excerpt from a recent issue of Advice for Inner Circle Pro Members:
“One form of technical analysis is the Relative Strength Indicator (RSI). It charts a stock’s current and historical strength, or weakness, based on its closing prices over a recent trading period. Specifically,… Read More