How To Invest

In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.

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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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How To Invest Library Archives
PAYPAL HOLDINGS INC., $95.32, Nasdaq symbol PYPL, remains a buy, but only for highly aggressive investors.

The company lets investors tap the fast-growing field of online transaction processing, including purchases made through the auction websites of its former parent company, eBay (see below).

The stock jumped 10% this week after PayPal announced a new agreement with activist investment firm Elliott Investment Management, which owns $2 billion of the company’s stock (about 2% of PayPal’s $111.3 billion market cap).

The activist will support PayPal’s current restructuring plan, which involves focusing on building transaction volumes to generate higher profits, rather than focusing on adding new users....
TORONTO-DOMINION BANK, $83.44, Toronto symbol TD, is a buy.

The bank has agreed to acquire U.S.-based investment banking firm Cowen Inc. (Nasdaq symbol COWN). Founded in 1918, Cowen provides a wide range of services to corporate clients, including brokerage, stock and bond underwriting, initial public offerings and advice on mergers and acquisitions.

TD will pay $1.3 billion U.S....
A: E.L.F. Beauty Inc., $34.07, symbol ELF on New York (Shares outstanding: 52.4 million; Market cap: $1.8 billion; www.elfbeauty.com), sells cosmetics at below department-stores prices and those of specialty shops like Sephora....
A: Whitecap Resources Inc., $9.51, symbol WCP on Toronto (Shares outstanding: 626.3 million; Market cap: $6.1 billion; www.wcap.ca), produces and explores for oil and natural gas in Western Canada....
We first recommended Cintas in the October 2005 issue of Wall Street Stock Forecaster as a buy for aggressive investors. We felt the company’s dominance in the niche uniform rentals business gave it reliable revenues and cash flows. Its ability to sell other products and services to its clients, such as floor mats and cleaning supplies, also enhanced its appeal.

The stock has not disappointed....
MCDONALD’S CORP., $263.58, New York symbol MCD, is your #1 Conservative Buy for 2022.

The company is the world’s largest fast-food chain with 40,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french fries....
PIONEER NATURAL RESOURCES CO., $236.95, symbol PXD on New York, is a Texas-based independent oil and gas exploration and production company. It has extensive acreage in the Midland Basin in West Texas. This should support more than 20 years of future production.

In the quarter ended March 31, 2022, the company’s revenue increased 152.9%, to $6.2 billion from $2.4 billion a year earlier....
GARMIN LTD., $97.62, is a buy. The company (symbol GRMN on Nasdaq) makes GPS devices and software for five different markets: fitness, outdoors, auto, aviation, and marine.

In the three months ended June 25, 2022, Garmin’s overall revenue fell 6.5%, to $1.24 billion from $1.33 billion a year earlier....
INTERNATIONAL BUSINESS MACHINES CORP., $130.79, New York symbol IBM, is a buy.

The company is one of the world’s largest computer firms, with operations in over 175 countries.

With the June 2022 payment, IBM raised your quarterly dividend by 0.6%, to $1.65 a share from $1.64....
CANADIAN PACIFIC RAILWAY LTD., $100.97, Toronto symbol CP, is your #1 Conservative Buy for 2022.

CP ships freight over a 23,700-kilometre rail network, mainly between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast.

The company is now in the process of merging with U.S.-based railway Kansas City Southern....