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
A: Novo Nordisk A/S (ADR), $55.41, symbol NVO on New York (Shares outstanding: 2.0 billion; Market cap: $142.5 billion; www.novonordisk.com), is a major producer of diabetes-care products, including insulin....
A: Tricon Capital Group Inc., $9.40, symbol TCN on Toronto (Shares outstanding: 112.2 million; Market cap: $1.0 billion; www.triconcapital.com), is focused on residential real estate development across North America....
We still think investors will profit most—and with the least risk—by buying shares of well-established, dividend-paying stocks with strong business prospects.



These are companies that have leading positions in healthy industries. They also have strong management that will make the right moves to remain competitive in a changing market.



Stocks like these give investors an additional measure of safety despite today’s volatility....
A: Lockheed Martin Corp., $261.53, symbol LMT on New York (Shares outstanding: 304.4 million; Market cap: $79.6 billion; www.lockheedmartin.com), is the world’s largest defense contractor....
A: Ivanhoe Mines, $1.12, symbol IVN on Toronto (Shares outstanding: 772.2 million; Market cap: $864.9 million; www.ivanhoemines.com), changed its name from Ivanplats Ltd. in 2013.



The company first sold shares to the public and began trading on the Toronto exchange at $4.75 in October 2012.



Ivanhoe has three main development projects focused on copper, zinc and platinum....
A: Annaly Capital Management, $10.72, symbol NLY on New York, is a New York City-based real estate investment trust that owns and manages a portfolio of mortgage-backed securities.

The trust has agreed to buy Hatteras Financial Corp., $16.29, symbol HTS on New York, for $1.5 billion.

Formed in 2007, Hatteras is also a mortgage REIT: it owns and manages residential mortgage investments, primarily secured by adjustable-rate mortgages on single-family homes.

Most mortgage REITs have been trading at discounts to the value of their assets....
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Most investor sayings and clichés have at least a hint of truth. But they can still lead you to make good or bad investment decisions, depending on how you apply them.

For instance, you’ll sometimes hear investors say that you shouldn’t fall in love with your stocks....
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Pharmaceutical (47% of revenue) makes anti-infective, antipsychotic, contraceptive, dermatological and gastrointestinal drugs;



Medical devices and diagnostics (35%) sells equipment for joint reconstruction and managing circulatory diseases;



Consumer (18%) makes over-the-counter products such as Johnson’s baby care items, Band-Aid bandages, Tylenol and Motrin painkillers, Listerine mouthwash and Neutrogena skin cream.



In June 2016, Johnson & Johnson agreed to acquire beauty-products firm Vogue International for $3.3 billion; it represents the company’s biggest acquisition in four years....
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Starbucks has 12,444 company-operated stores and 11,477 licensed outlets in 72 countries....