investment advice
Many successful investors start researching a company by looking at its financial ratios, including its debt-to-equity ratio. This ratio
On TSI Network, we’ve periodically looked at common stock market strategy errors most investors make, and given you our advice on how to avoid them. Here are 3 more profit-killing mistakes to look out for. Most investors make them from time to time. Stock market strategy error #1: Trying to time the market. Our view is that nobody guesses right every time about the direction of the stock market. Some of the most prominent people in the investment world owe their prominence to a series of correct guesses that could end at any time.
That’s why market timing plays a small role, if any, in our stock market strategy. Instead, we focus on investment quality and portfolio management. We diversify across most, if not all, of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities), we aim to uncover investment quality at a modest price, and we downplay or shun the overhyped investments that you’ll find in the glare of the broker/media limelight.
...
That’s why market timing plays a small role, if any, in our stock market strategy. Instead, we focus on investment quality and portfolio management. We diversify across most, if not all, of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities), we aim to uncover investment quality at a modest price, and we downplay or shun the overhyped investments that you’ll find in the glare of the broker/media limelight.
...
We’re happy to see that more investors are commenting on the articles we post on TSI Network. The site’s comments feature lets investors share their thoughts on our investment advice, and read other visitors’ opinions. Your comments also help us choose the best topics to write about in our TSI Network Daily Updates. Adding your comments couldn’t be easier: just scroll to the bottom of the article you’d like to comment on and type in your thoughts (you’ll have to log in first). Even if you don’t comment yourself, you’ll be surprised at the investment advice you can pick up just by reading comments posted by other investors just like you....
We see investment clubs as a good way to learn stock trading, and gather investment information. Investment clubs can offer social and educational benefits. For example, they may be a good place to learn stock trading if you are a beginning investor and think you would feel more comfortable learning about investments with others. Some clubs let you invest as little as, say, $50 a month. Investment clubs do have hidden risks that can hurt your profits. That’s because investment clubs make decisions by committee, where responsibility for mistakes is diffused. When committees make mistakes, they sometimes make big ones....
Growth stocks are companies whose earnings growth has been above the market average, and is likely to remain above average. These firms often pay little or no dividends.
Today’s popular investment themes include green energy stocks, such as solar, wind, and geothermal, and emerging markets, such as China and India.
You pay commissions each time you buy or sell stock options. Commissions eat up a large part of any stock option investing profits you make
When you own a stock that’s being taken over, our investment advice is that it generally pays to hang on and wait for the deal to go through, then submit your shares to whoever’s making the takeover bid. Selling early will cost you money in the long run. Weeks before a takeover is announced, speculators usually buy the stock on rumours, and drive up its price. (Mind you, speculators also drive up prices of stocks that are falsely rumoured to be takeover candidates.)
Investment advice: Patience is the key to takeover profits
...
BANK OF NOVA SCOTIA, $58.48, Toronto symbol BNS, reported better-than-expected earnings this week. That’s mainly because it is putting less money aside to cover bad loans because of the improving economy. The bank also saw strong gains at its international-banking and wealth-management operations. In the three months ended April 30, 2011, Bank of Nova Scotia earned $1.5 billion. That’s up 40.7% from $1.1 billion a year earlier. Earnings per share rose 33.3%, to $1.36 from $1.02, on more shares outstanding. The latest earnings included a one-time gain of $286 million, or $0.26 a share. That’s mostly because new accounting rules forced the bank to revalue its original 18% stake in DundeeWealth Inc. in connection with its recent purchase of the remaining 82% of this company. DundeeWealth manages investments and operates a brokerage business. It also owns the Dynamic family of mutual funds, and provides financial-planning and investment advice....
We’ve long recommended that all Canadian investors own shares of two or more of the big-five Canadian banks. That’s mainly because of the banks’ importance to Canada’s economy. However, each of the big five banks have different objectives, so they’re not all suitable for every investor.