Topic: How To Invest

What is Pat’s commentary for the week of April 5, 2022

Article Excerpt

Here are three rules for investing successfully in fast-growing stocks: These stocks tend to be highly volatile, but not consistently so. They may go racing up and down, but also go through long periods of relative price stability. If you wait to buy on a dip, you may sit through a long rise and miss out on a huge gain. A bigger risk of waiting to buy on a dip is that the downturn that spurs you to buy may look like a dip at first, but turn out to be the start of a major decline. Waiting for a dip sounds like conservative, risk-reduced investing. In fact, it’s much more effective at cutting your profits than your risk. Your best guide to conservative investing is to disregard market cliches like “buy on a dip”. Instead, follow our three rules for successful investing: Invest mainly in well-established companies with a record of making money and, ideally, paying dividends; Spread your money…