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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FirstService boosted its earnings 27% in the most-recent quarter through its well-managed acquisition of several small firms. Those businesses depend on recurring business from existing homeowners and are less vulnerable to the ups and downs of new home sales. They also immediately added to the company’s overall revenue and earnings.
Still, when you invest in gold producers, you will indeed profit from rising gold prices. That’s without bearing the cost to store and insure physical gold investments like gold bars, coins, etc. Note—the best gold mining stocks also pay you dividends, which tend to rise along with gold prices and production.