How To Invest

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

[text_ad]

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.

[text_ad]

Read More Close
How To Invest Library Archives
A: Mini-tenders typically bid for shares at prices below the market price, and the offers are highly conditional.


The U.S. Securities and Exchange Commission (SEC) has issued comments about mini-tender offers. The SEC states: “Some bidders make mini-tender offers at below-market prices, hoping that they will catch investors off guard if...
A: Under Armour Inc., $18.00, symbol UA on New York (Shares outstanding: 449.9 million; Market cap: $8.3 billion; www.underarmour.com), designs and markets athletic clothing, shoes and accessories for men, women and children....
A: AquaBounty Technologies, $11.15, symbol AQB on Nasdaq (Shares outstanding: 8.9 million; Market cap: $109.5 million; www.aquabounty.com), is a biotechnology company focused on enhancing productivity in aquaculture. Intrexon Corporation (symbol XON on New York) owns 58.1% of the company’s outstanding shares.


Aquabounty began trading on Nasdaq in January 2017....
A: Synaptics Inc., $47.89, symbol SYNA on Nasdaq (Shares outstanding: 35.4 million; Market cap: $1.9 billion; www.synaptics.com) develops and supplies touchscreens and touchpads for smartphones, tablets, notebooks, car dashboards and smartwatches. The company focuses on research and development, and product design and engineering....
Dear Inner Circle Member,


In mid-March, I wrote about a question I often hear from investors: “Should I invest in stocks in retirement?” Here are two more points on that subject.


First, many investors disregard the similarity between pensions and bonds, insofar as both provide a fixed annual return.


For instance, consider a retired investor with pension income of $50,000 a year, and a $1 million stock portfolio that generates dividends of $30,000 a year....
A: Drone Aviation Holding Corp., $2.25, symbol DRNE on the U.S. over-the-counter bulletin board (Shares outstanding: 8.8 million; Market cap: $19.8 million; www.droneaviationcorp.com), aims to develop and sell tethered drones to government and commercial customers in the U.S....
A: Altius Minerals Corp., $12.39, symbol ALS on Toronto, (Shares outstanding: 43.3 million; Market cap: $541.7 million; www.altiusminerals.com), owns a portfolio of royalty interests in 15 operating mines in Canada and one in Brazil....
A: Herc Holdings Inc., $48.50, symbol HRI on New York (Shares outstanding: 28.3 million; Market cap: $1.3 billion; www.hercrentals.com), operates one of the leading equipment rental businesses in North America through its operating subsidiary, Herc Rentals.


On July 1, 2016, the old Hertz Global Holdings Inc....
Dear Inner Circle Member,


As you know, one of the three key points to our Successful Investor strategy is that you need to downplay or avoid stocks in the broker/media limelight. A similar warning applies to investment-related ideas.


Just to refresh your memory: we advise you to downplay or avoid stocks in the limelight because the limelight distorts investment quality....
A: DexCom, $77.38 symbol DXCM on Nasdaq (Shares outstanding: 84.8 million; Market cap: $6.8 billion; www.dexcom.com), develops, makes and sells continuous glucose monitoring (CGM) systems for people with diabetes. These are small wearable devices that track a person’s glucose throughout the day and night, notifying them of highs and lows so they can take action.


The company’s Seven and Seven Plus CGM systems have FDA approval and are used for outpatient monitoring....