Friday, 29 August 2014
Not following investment Bloggers Herd???
It is so much easier to follow investment bloggers herd into ....
What?
Read? Here’s 1 Thing You Really Need To Know Before You Start Investing
Not every great investment is suitable for you
Although an investment might have a great chance of turning in a positive outcome, it might still not necessarily be suitable for you.
Continuing from the imaginary example above, investing your entire portfolio in high-yielding shares might not be the best option for you. Since you’ve just started work for only a few years, it’s likely your investment portfolio is small – this makes reinvesting dividends impractical. And given that the reinvestment of dividends can be a very powerful force in boosting long-term share market returns, it might not make sense for you, as a new investor, to chase high-yielding shares.
Instead, it might be more suitable for you (again, hypothetically as per the imagined scenario described earlier) to concentrate on companies which have a strong track record of growth and which retain most of their earnings to fund growth. In that way, you can benefit from the company compounding its own economic value over time.
In sync with Uncle8888's investing advice for the young ones ...
Read more? How to become rich in stocks??? (26)
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Investing without thinking is always dangerous.
ReplyDeleteInvestors should always have a strategy in mind before investing away their monies.
Regards,
SG Wealth Builder
www.sgwealthbuilder.com