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: The Vanguard FTSE Europe ETF, $50.29, symbol VGK on New York (Units outstanding: 218.2 million; Market cap: $11.0 billion; www.vanguard.com), holds stocks of companies located in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the U.K.


The ETF has a low MER of 0.12%....
A: Energy Fuels Inc., $2.68, symbol EFR on Toronto (Shares outstanding: 66.6 million; Market cap: $178.5 million; www.energyfuels.com), owns two uranium-processing facilities that supply that U3O8 to major nuclear utilities....
A: Uranium Resources Inc., $1.79, symbol URRE on Nasdaq (Shares outstanding: 24.5 million; Market cap: $43.9 million; www.uraniumresources.com), has begun to develop a lithium business while it waits for uranium prices to move up.


As part of that, the company has bought land holdings in two prospective lithium brine basins in Nevada and Utah....
A: HudBay Minerals Inc., $8.99, symbol HBM on Toronto (Shares outstanding: 237.3 million; Market cap: $2.1 billion; www.hudbayminerals.com), produces base and precious metals including copper, zinc, gold and silver.


The company first sold shares to the public at $2.25 each and began trading on Toronto in December 2004....
Dear Inner Circle member,


On occasion a client asks, “Should I invest in stocks in retirement?” The answer to the question depends on two sets of info:


First, start with the essential differences between stocks and bonds.


Over long periods, bonds tend to provide lower but more certain returns than stocks....
A: Aimia Inc., $9.26, symbol AIM on Toronto (Shares outstanding: 152.3 million; Market cap: $1.4 billion; www.aimia.com), is a recommendation of our Stock Pickers Digest newsletter.


The company owns and operates Aeroplan, Canada’s largest loyalty program....
A: BioLineRx (ADR), $1.18, symbol BLRX on Nasdaq (ADRs outstanding: 59.1 million; Market cap: $69.7 million; www.biolinerx.com), is a clinical-stage biopharmaceutical company that aims to identify, license and develop promising therapeutic medications and treatments....
A: Dividend 15 Split Corp., $10.85, symbol DFN on Toronto (Shares outstanding: 34.7 million; Market cap: $376.5 million; www.dividend15.com), is a split-share investment corporation that holds shares of 15 companies: BCE Inc., CI Financial Corporation, Bank of Nova Scotia, Thomson Reuters, National Bank of Canada, TransAlta Corporation, Sun Life Financial, Canadian Imperial Bank of Commerce, TransCanada Corporation, Manulife Financial, TD Bank, Royal Bank of Canada, Bank of Montreal, Telus Corporation and Enbridge.


The company can also invest up to 15% of its portfolio in other stocks.


Dividend 15 Split Corp....
Dear Inner Circle member,


Investors often try to improve their investment returns by delving into high-risk and/or high-fee investment areas such as specialized investment products, options, penny stocks and so on. Far better to start off by putting yourself in a position to profit from human nature, rather than suffering because of it, as you often do in high-risk investing....
A: Northern Dynasty Minerals, $2.06, symbol NDM on Toronto (Shares outstanding: 264.6 million; Market cap: $608.4 million; www.northerndynastyminerals.com), aims to build a mine at its Pebble project in Alaska.


The Pebble deposit contains an estimated 81.5 billion pounds of copper, 5.6 billion pounds of molybdenum and 107 million ounces of gold....