How To Invest

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.

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IBM $184.96 (New York symbol IBM; Shares outstanding: 1.1 billion; Market cap: $204.2 billion; TSINetwork Rating: Above Average; Dividend yield: 2.1%; www.ibm.com) recently paid an undisclosed sum for U.K.-based Daeja Image Systems. This company’s products make it easier to view digital images in hundreds of different computer file formats without first installing the program that created the original image.

This is key for businesses that need to manage huge volumes of information, and access data from multiple devices, such as PCs, tablets and smartphones.

Daeja’s products also help businesses mask sensitive information on computer images, and restrict access to certain files.
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ISHARES MSCI BRAZIL INDEX FUND $48.89 (New York Exchange symbol EWZ; buy or sell through brokers) is an exchange traded fund that is designed to track the Brazilian stock market.

Top holdings are Petrobras (oil and gas), 11.8%; Vale do Rio Doce (mining), 9.6%; Cia Itau Unibanco Holding (banking), 7.5%; Banco Brandesco preferred, 6.1%; Cia de Bebidas das Americas (beer and beverages), 5.7%; and BRF SA (food), 4.0%.

The ETF was launched on July 10, 2000. It has an expense ratio of 0.62%.
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ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $51.39 (New York Exchange symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that are mainly traded on the Santiago Stock Exchange.

The fund’s top holdings are S.A.C.I. Falabella (retail), 9.2%; Empresas Copec SA (conglomerate), 8.5%; Enersis AS (electricity), 8.3%; Cencosud SA (retailer), 6.7%; Empresa Nacional de Electricidad (electricity), 5.9%; Banco Santander Chile (banking), 5.5%; LATAM Airlines SA, 5.1%; Empresas CMPC (pulp and paper), 4.4%; Banco de Chile, 4.2%; and Quimica y Minera de Chile (mining), 3.7%.

The fund’s industry breakdown is: Utilities, 24.4%; Financials, 17.9%; Consumer Staples, 13.3%; Materials, 11.2%; Consumer Discretionary, 10.9%; Energy, 8.5%; Industrials, 8.2%; Telecommunications, 3.0%; and Information Technology, 2.1%.
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ISHARES MSCI GERMANY FUND $28.10 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index.

This index aims to replicate 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Bayer (diversified chemicals), 8.9%; Siemens (engineering conglomerate), 8.7%; BASF (chemicals), 8.0%; Daimler (autos), 6.8%; Allianz (insurance), 6.6%; SAP (software), 6.2%; Deutsche Bank, 4.3%; Deutsche Telekom, 3.7%; and Linde AG (industrial gases), 3.3%.
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ISHARES MSCI SOUTH KOREA INDEX FUND $62.49 (New York Exchange symbol EWY; buy or sell through brokers) is an exchange traded fund that aims to track the MSCI Korea Index.

The ETF’s top holdings are Samsung Electronics, 21.3%; Hyundai Motor Co., 6.2%; Posco (steel), 3.4%; Hyundai Mobis (auto parts), 3.2%; Shinhan Financial, 3.0%; Kia Motors, 2.8%; SK Hynix Semiconductor, 2.5%; Naver Corp. (Internet content), 2.5%; LG Chemical, 2.1%; and KB Financial, 2.2%.

The fund’s industry breakdown is as follows: Information Technology, 31.4%; Consumer Discretionary, 19.0%; Financials, 14.2%; Industrials, 13.8%; Materials, 10.5%; Consumer Staples, 5.1%; Energy, 2.6%; Utilities, 1.5%; Telecommunication Services, 1.0%; and Health Care, 0.8%.
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ISHARES MSCI EMERGING MARKETS INDEX FUND $41.73 (New York symbol EEM; buy or sell through brokers) is an exchange traded fund that aims to track the MSCI Emerging Markets Index. Its geographic breakdown includes China, 18.6%; South Korea, 15.7%; Brazil, 11.6%; Taiwan, 11.3%; South Africa, 7.4%; Russia, 6.2%; India, 5.8%; Mexico, 5.2%; Malaysia, 3.7%; and Thailand, 2.5%.

The ETF’s top holdings are Samsung Electronics (South Korea), 3.7%; Taiwan Semiconductor (computer chips), 2.3%; China Mobile, 1.8%; China Construction Bank, 1.5%; Tencent Holdings (China: Internet), 1.5%; Industrial & Commercial Bank of China, 1.4%; Gazprom (Russia: gas utility), 1.4%; and America Movil (Brazil: wireless), 1.0%.

The fund’s industry breakdown is as follows: Financials, 26.8%; Information Technology, 14.8%; Energy, 11.7%; Materials, 9.8%; Consumer Staples, 8.8%; Consumer Discretionary, 8.8%; Telecommunication Services, 7.6%; and Industrials, 6.4%.
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ISHARES MSCI JAPAN INDEX FUND $11.81 (New York Exchange symbol EWJ; buy or sell through brokers; us.ishares.com) is an exchange traded fund that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index.

The ETF’s top holdings include Toyota, 6.6%; Mitsubishi UFJ Financial, 3.1%; Sumitomo Mitsui Financial, 2.4%; Softbank Corp., 2.4%; Honda Motor, 2.3%; Mizuho Financial Group, 1.9%; Japan Tobacco, 1.5%; Takeda Pharmaceutical, 1.4%; Canon, 1.3%; and Hitachi, 1.2%.

The fund’s industry breakdown is as follows: Financials, 21.4%; Consumer Discretionary, 21.1%; Industrials, 19.6%; Information Technology, 9.6%; Consumer Staples, 6.3%; Materials, 6.2%; Health Care, 5.9%; Telecommunication Services, 5.1%; Utilities, 2.8%; and Energy, 1.2%.
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ENBRIDGE INC. $42.55 (Toronto symbol ENB; Shares outstanding: 825.7 million; Market cap: $35.0 billion; TSINetwork Rating: Above Average; Yield: 3.0%) invested $23.8 million in 2010 for a 20% interest in the 35-megawatt Neal Hot Springs facility in Oregon, which was then under construction. U.S. Geothermal (New York symbol HTM) owns the other 80%.

The plant, which taps into heat from below the earth’s crust, has now started up.

The renewable energy facility is a small one for pipeline operator Enbridge, which also owns 12 wind farms and four solar plants. But these should help deflect criticism from environmentalists opposed to some of its pipelines, as well as let it steadily diversify into power generation.
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ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $32.50 (Toronto symbol AP.UN; Units outstanding: 68.2 million; Market cap: $2.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%; www.alliedpropertiesreit.com) owns 134 office buildings, mostly in major Canadian cities. These mainly Class I properties contain over 9.5 million square feet of leasable area.

Class I refers to 19th- and early-20th-century light industrial buildings that have been converted to retail space. They usually feature exposed beams, interior brick and hardwood floors.

The trust bought $400 million worth of properties in 2012. In the first half of 2013, it added a further $170.2 million worth. Allied has a 92.0% occupancy rate.
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RIOCAN REAL ESTATE INVESTMENT TRUST $24.19 (Toronto symbol REI.UN; Units outstanding: 300.7 million; Market cap: $7.3 billion; TSINetwork Rating: Average; Dividend yield: 5.8%; www.riocan.com) is Canada’s largest real estate investment trust (REIT), with interests in 348 shopping malls containing over 83 million square feet of leasable area. That total includes 50 U.S. malls with over 13.7 million square feet.

Earlier this year, RioCan ended its joint venture with Retail Properties of America (New York symbol RPAI). As a result, RioCan now holds 100% of eight malls in Texas, including the dominant shopping centres in Austin and San Antonio.

In the quarter ended June 30, 2013, RioCan’s revenue rose 9.7%, to $272 million from $248 million a year earlier. Cash flow per unit increased 8.1%, to $0.40 from $0.37. The units yield 5.8%.
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