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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Instead of installing individual pieces of software on their employees’ computers, corporate clients use Citrix’s remote servers to give their employees secure access to all their software and apps....
“Stocks trading at a P/E ratio of 10 times per-share earnings or less are good buys.”
“As January goes, so goes the year.” In other words, if the stock market goes up in January, it will probably have a gain for the year, as a whole.
“When a stock rises and its volume of trading expands as well, it’s likely to keep rising.”
There were multitudes of these rules....
“The timing of downturns is largely random....
Westshore ships both metallurgical and thermal coal....
“The timing of downturns is largely random....
Let’s say you want to buy a U.S. stock trading at $100 U.S.
This would cost you $130.14 in Canadian dollars at today’s exchange rate.
Let’s say the stock rose 5%, to $105 U.S.
If you sold it, and the exchange rate remained the same, you would get $136.65 in Canadian dollars.
That’s also an increase of 5%.
At the same time, exchange rates do change....
Today, the company is the world’s largest maker of agricultural equipment, with manufacturing plants in the U.S., Canada, France, Germany, Spain, South Africa, Mexico and Argentina....