Photo by Jason Briscoe on Unsplash
To be successful in investing, there are eight basic steps to take:
1. Evaluate your needs and goals
2. Decide whether to invest doing-it-yourself or to hire a financial planner
3. Decide how long you’re able to invest
4. Research fees and charges
5. Write your plan
6. Know how a company operates, its competitive position, its long-term prospects and whether it improves lives
7. Diversify your investments
8. Keep a long-term view and don’t engage in self doubt – avoid trading over-activity
Stock Market — 5 Reasons to Invest … in a Financial Planner
Seven precautions to minimize risk:
1. Choose the right mutual funds
Pick the right funds that historically yield above-average returns for below-average risk such as Vanguard Equity-Income and because the best funds have stock pickers who have skin in the game. (Note: No payment has been received from Vanguard.)
2. P/E ratios
Your best bet is stay diversified in portfolios looking for firms that provide value in changing people’s lives and show profits. This is where a price-earnings ratio is important.
The P/E ratio of a company indicates the dollar amount you can likely invest to get a dollar of its earnings. If a company has a high P/E ratio, higher growth can be anticipated by investors like you.
Investing Strategies to Profit in a Blustery Stock Market
3. S&P 500 and NASDAQ
Consider stocks that are trending well in the S&P 500 and NASDAQ. At this writing, they led the indexes to all-time highs.
4. Big tech
Be leery about some of the Big Tech stocks in NASDAQ because they’re either facing anti-trust actions, or legal issues over privacy issues, or their censorship policies of conservative policies and political leaders.
5. Avoid narcissistic CEO-led companies
Research and invest in stocks led by CEOs who aren’t narcissistic. Narcissistic CEOs are a huge red flag in investing. I once wrote about this: “Why Not to Expect Miraculous Leadership from Narcissistic CEOs.”
6. Firms strong in HR training
Here’s another red flag: “Data Warns Investors to Look for Firms Strong in HR Training.”
7. Stay current
For late-breaking analysis and events on Wall Street, see the Business video page in The Biz Coach Newsroom.
From the Coach’s Corner, editor’s picks:
For Best Results to Get Wealth and High Net Worth, 7 Steps — Creating wealth and enjoying high net worth doesn’t result from pure luck. It takes a certain mindset and strong action. Here are seven proven steps.
How to Find the Right Financial Planner for Your Situation — If you decide you want a financial planner, always remember due diligence is necessary for your financial security. Here are four questions to ask yourself.
What the Affluent Know about Achieving Financial Success — Two different experts who speak with authority about wealthy Americans – a business professor and a leading consulting firm – have offered advice for minorities who seek success in their careers.
Due Diligence for Getting the Most from Your 401(k) — Will you be satisfied with the results of your retirement planning? With the stock market soaring in recent years, there are even more trillions of dollars in 401(k) plans that allow employees to save for retirement and acquire wealth. Here’s how savvy employees avoid regrets with 401(k) plans.
Best Financial Strategies to Invest a Big Inheritance — Envision this: If you want to make the most of a big inheritance by investing, it’s important to take your time, understand your tax obligations, and to evaluate the likely return on your investments.
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
-Warren Buffett
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