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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We ended off our latest quarterly client letter, which went out last month to Successful Investor Wealth Management clients, with the following:
“The supply chain shift may spur more countries to ‘dollarize’—switch to the U.S....
On December 4, 2023, Sysco announced that it completed the acquisition of Edward Don & Company, a leading distributor of foodservice equipment....
The company processes, transports, stores and markets natural gas for producers. It also operates natural gas utilities and is a power generator, with gas-fired, coal-fired, wind, biomass and hydroelectric plants.
Almost all of AltaGas’ assets are now in the U.S....
The company is one of the world’s largest makers of prescription drugs. Its top-selling brands include Enbrel (arthritis), Ibrance (breast cancer) and Prevnar (pneumonia).
Pfizer has now completed its acquisition of Seagen Inc....
In the past few years, Bank of Nova Scotia has narrowed its international focus to four countries in Latin America—Mexico, Peru, Colombia and Chile. Those four markets—which the bank refers to as “the Pacific Alliance”—have favourable long-term demographics....
You Can See Our Current Power Recommendations For January 2024 Here.
Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now....
You Can See Our Spinoff Stock Portfolio For January 2024 Here.
Why we like spinoffs so much
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:
1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.
2) Spinoffs involve a lot of work and legal fees....