Keys to Long-term Gain

Article Excerpt

All too many investors start out believing that the surest route to long-term profit is a series of profitable short-term trades. Most eventually learn differently. It’s easy enough to put together a series of short-term trades that generate small profit. The hard part is avoiding the occasional disaster that wipes out most if not all of your profits. That’s why we so often remind you about our three-pronged system for long-term gain. Your best chance of investment success lies in, 1. investing mainly in well-established, high-quality companies; 2. profiting from hidden assets by focusing on stocks that are currently attracting little attention from brokers and the media; and, 3. spreading your money out across the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities). That third point is crucial. Investing comes with a random element that can offset the value of investment quality and hidden assets. Stocks and economic sectors go in and out of favour with investors. On occasion,…

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