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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Dear Inner Circle member,


Prior to the U.S. Presidential Election in November last year, an investor sent me a copy of a research study that compared the performance of the stock market under U.S. presidents since World War Two, starting with Democrat Harry Truman (President from 1949 through 1953, 69.3% total return in his 4-year term)....
Dear Inner Circle member,


As you probably know, our Successful Investor investment approach has three key parts:


  1. Invest mainly in well-established, profitable, dividend-paying stocks;

  1. spread your money out across most if not all of the five main economic sectors;

  1. downplay or avoid stocks in the broker/media limelight.

We see our three-part approach as your best foundation for building an investment portfolio that expands your prospects for growth while keeping risk in check....
A: Shopify Inc., $63.34, symbol SHOP on Toronto (Shares outstanding: 88.9 million; Market cap: $5.5 billion; www.shopify.com), offers merchants of all sizes cloud-based software to design, set up and manage stores across multiple sales channels....
A: Paramount Resources, $16.40, symbol POU on Toronto (Shares outstanding: 106.3 million; Market cap: $1.7 billion; www.paramountres.com), produces oil and natural gas, mostly in Alberta, but also in B.C., Saskatchewan and the Northwest Territories....
A: iShares S&P/TSX SmallCap Index ETF, $16.97, symbol XCS on Toronto (Shares outstanding: 8.3 million; Market cap: $140.9 million), holds the 200 stocks in the S&P/TSX SmallCap Index. That index is made up of the smaller companies on the Toronto Stock Exchange....
A: ProShares Ultra Gold ETF, $35.25, symbol UGL on New York (Units outstanding: 2.8 million; Market cap: $98.7 million; www.proshares.com), aims to move 200% in the same direction as the price of gold.


The fund relies on futures contracts and other derivatives to try to boost its returns on gold....
A: MacDonald Dettwiler and Associates, $67.14, symbol MDA on Toronto (Shares outstanding: 36.3 million; Market cap: $2.5 billion; www.mdacorporation.com), offers satellite space to a range of service providers, including television and radio broadcasters, and broadband Internet and mobile communications companies.


The company is also a leading supplier of communication satellites and satellite-antenna subsystems, including related ground infrastructure and support services....
A: Medical Facilities Corp., $17.52, symbol DR on Toronto (Shares outstanding: 31.0 million; Market cap: $552.0 million, www.medicalfacilitiescorp.ca), owns majority interest in five specialty surgical hospitals in South Dakota, Indiana, Oklahoma and Arkansas, as well as an outpatient surgery clinic in California.


The specialty hospitals perform scheduled surgical, imaging and diagnostic procedures....
A: Cemex S.A.B. de C.V. (ADRs), $8.04, symbol CX on New York (ADRs outstanding: 1.4 billion; Market cap: $11.3 billion; www.cemex.com), is a Mexican company engaged in the production, distribution, marketing, and sale of cement, ready-mix concrete and aggregates.


Cemex continues to work to improve its balance sheet: this year, it sold assets to raise $2 billion U.S.; and it plans to sell more assets to further cut that debt an additional $1 billion to $1.5 billion in 2017....
A: No one can consistently predict currency movements, and we still feel that most Canadian investors should hold, say, up to 30% of their portfolio in U.S. stocks. Note that even if the U.S. dollar falls against the Canadian dollar, your U.S. stocks can appreciate even while the currency sags.


But looking at your question:


There is no easy way to hedge individual U.S....