Showing posts with label Investing. Show all posts
Showing posts with label Investing. Show all posts

Friday

How To Buy Stock Online – Your Ultimate Guide


If you would like to buy stock online, then you’re making a smart move – because more and more traders are using the Internet to place their trades conveniently and easily by using an online brokerage service. In this guide, we are going to share some further information on the subject of purchasing stock online, so by the time you have finished reading, you will know which steps to take next.

To begin with, the most efficient way to buy stock online is to simply use an online broker, but it’s important to remember that not all of these services are created equally. In general, they come with various features and functions that you need to understand before you settle on a specific platform.

In particular, you need to pay close attention to the commission that’s involved when using an online brokerage to trade stock for you. In most cases, this commission will be a percentage of the stock purchase price, but there will be a variety of different deals available if you investigate further.

Next, it’s well worth finding a stockbroker who has expert advice and knowledge to share – because this goes a long way towards making sure you purchase stock that will give you a respectable return on your investment rather than become a liability. Several of the top online stockbroker services come with a range of educational and training materials, and this information is very useful – especially if you are a beginner.

Something else you need to consider when it comes to purchasing stock online is whether you want to use a full-service solution. The key benefit of using full-service brokers is that you will not need to follow the markets yourself, and you can trust the experience and knowledge of your broker to make savvy trading decisions for you.

Of course, this involves a great deal of trust, and there will usually be no guarantees of a return on your investment –so you will need to do plenty of research into the overall track record of any full-service broker before you part with your cash.

However, many people greatly appreciate the convenience offered by a full-service solution, and this is often an effective way to invest part of a retirement fund or a cash windfall that you want to make the most out of. By placing these funds into the hands of a skilled broker, you will be able to secure your financial investment for the long term, and possibly earn an excellent profit in the process.

Yet another option you may be interested in is using a discount broker. While these services do not require such a hands-on experience, they can certainly save you quite a bit of money – so many people refer them for this reason alone.

If you already have expert knowledge in the stock market and know exactly which stocks you want to buy and sell, then using a discount broker who charges a minor fee will usually be a good decision. In most cases, these services are best for people who already have a great deal of experience, so they do not need the extra handholding that comes with using a full-service broker.

Finally, it’s wise to devise a system for buying and selling your stocks, rather than doing it in a careless and haphazard manner. Many people use a stock pick service which gives them expert picking advice, and this type of assistance can be a huge boon to your stock trading efforts.

Conclusion

Overall, learning how to buy stock online is a relatively straightforward process – but the hard part comes with knowing which stocks to buy and when to sell them. However, the first step is to find a quality broker, and the information in this guide should guide you towards a savvy decision.

source: stocktrading4beginners.info

Thursday

US economy: Consumer spending bolsters second-quarter growth


WASHINGTON -  U.S. economic growth accelerated in the second quarter as solid consumer spending offset the drag from weak business spending on equipment, suggesting a steady momentum that could bring the Federal Reserve closer to hiking interest rates this year.

Gross domestic product expanded at a 2.3 percent annual rate, the Commerce Department said on Thursday. First-quarter GDP, previously reported to have shrunk at a 0.2 percent pace, was revised up to show it rising at a 0.6 percent rate.

The revision to first-quarter growth reflected steps taken by the government to refine the seasonal adjustment for some components of GDP, which economists said left residual seasonality in the data, as well as new source data.

The Fed on Wednesday described the economy as expanding "moderately" while upgrading its view of the labor market and saying housing had shown "additional" improvement. The Fed's assessment left the door open for a possible hike in interest rates in September, which would be the first rise since 2006.

A separate report showed first-time applications for state unemployment benefits increased 12,000 last week to a seasonally adjusted 267,000. However, claims remained not too far from their cycle lows.

The dollar extended gains against a basket of currencies, while prices for U.S. Treasury debt fell slightly.

Though second-quarter GDP growth was a bit below economists' expectations for a 2.6 percent rate, the growth composition pointed to firming domestic fundamentals.

A measure of private domestic demand, which excludes trade, inventories and government expenditures, increased at a 2.5 percent rate after rising at a 2.0 percent pace at the start of the year.

Growth in the second quarter was boosted by consumer spending as households used some of the windfall from cheaper gasoline in late 2014 and early this year to go shopping. The strengthening labor market also encouraged consumers to loosen their purse strings.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew at a 2.9 percent rate from a downwardly revised 1.8 percent pace in the first quarter. Consumer spending was previously reported to have increased at a 2.1 percent rate at the start of the year.

The saving rate fell to 4.8 percent from 5.2 percent.

ENERGY DRAG PERSISTS

Housing also supported the economy in the second quarter, as did exports, and state and local government spending.

However, the energy sector continued to weigh on growth as it struggles with the lingering effects of deep spending cuts by oil-field companies like Schlumberger (SLB.N) and Halliburton (HAL.N) in the aftermath of a more than 60 percent plunge in crude oil prices last year.

Business spending on structures fell at a 1.6 percent rate after stumbling 7.4 percent at the start of the year. Investment on equipment fell at a 4.1 percent rate.

Spending on mining exploration, wells and shafts plunged at a 68.2 percent rate, the largest decline since the second quarter of 1986. This category dropped at a 44.5 percent pace in the first quarter.

But there are signs that the energy spending rout might be nearing an end. Data last Friday showed U.S. energy firms added 21 oil rigs last week, marking the third increase over the past 33 weeks.

Schlumberger said last week it believed the North American rig count may be bottoming and that a slow rise in both land drilling and completion activity could occur in the second half of the year.

Exports rebounded in the second quarter, despite a strong dollar, while imports rose moderately. That left a smaller trade deficit that added 0.13 percentage point to GDP growth.

Inventory investment slowed after the first quarter's brisk pace. Businesses accumulated $110.0 billion worth of merchandise, down from $112.8 billion in the first quarter, good news for the remainder of the year.

With oil prices rising during the second quarter and consumer spending picking up, inflation accelerated sharply.

The personal consumption expenditures price index rebounded at a 2.2 percent rate, the fastest since the first quarter of 2012, after falling at a 1.9 percent rate at the start of the year. Excluding food and energy, prices increased at a 1.8 percent pace.  — Reuters

Friday

How To Overcome Your Fear Of Investing In The Stock Market


This post is relevant for the following people:

* Who distrust the stock market.

* Who know they should take more risk but don’t because they’ve been burned before.

* Who don’t know much about the markets.

* Who are falling behind financially every day the bull market rages on.

* Who have the majority of their assets in cash, CDs, money market and checking accounts. (See CD Investment Alternatives)

* Who want a potentially higher rate of growth on their net worth.

* Who have grown a sizable financial nut and absolutely hate losing money.

* Who have a gambling tendency.

I’ve been investing in the stock markets since 1995 when Charles Schwab had a nascent online brokerage company. My father showed me his account one trading day and I was immediately hooked by all the green and red from various stock movements.

19 years isn’t a particularly long investment resume, but I did spend 13 years in the equities department of two major investment banks. Instead of buying and holding, I was neck deep into the sales and analysis of public companies. I’d meet with senior management, travel overseas to conferences, and visit company factories to kick the tires and make recommendations.

I remember traveling 26 hours to Anhui Province, China one year. My client and I landed at 2am, got to the hotel at 3am, visited the production facilities of Anhui Conch Cement (914 HK) at 9am for two hours and then caught a 2pm flight to Hong Kong to meet five more companies. The whole process of trying to fully understand companies before making an investment was exhausting, but necessary when other people’s money is at stake. Now compare how much research the average stock investor does before buying. Kind of scary.

The stock markets can be absolutely brutal to your net worth if you are not properly diversified. If you planned to retire in 2008-2010 you were absolutely crushed if most of your investments were in stocks. Everything has rebounded five years later, but that means you lost five years of financial freedom with a whole bunch of worrying while you worked through the recovery.

FEAR OF LOSING MONEY IN THE STOCK MARKET

 

When you’ve been as involved with the stock markets as I have, you see a lot of ugly. From the Asian Contagion in 1997, to the Russian Ruble crisis in 1998, to the dotcom bubble in 2000, the SARs scare in 2003, and the banking collapse in 2008, you can’t help but be a little wary of putting a majority of your net worth in stocks. Furthermore, you get to know how IPOs are sold, how hedge funds trade, how research analysts make recommendations, and how professional money managers invest their money. Nothing is exactly what it seems. If the investing public knew everything behind the scenes, I fear pandemonium would break out.

Despite all the carnage, if you had just held on to a major index fund like the S&P 500, you would have come out OK since we’re close to record highs today. Your money could have been invested elsewhere to provide greater returns since we had a lost decade between 2000-2010, but in the end everything always seems to turn out fine. It’s just hard not to feel scared when everything is going the wrong way.

When I started planning for my job exit in 2011, I knew that I had to figure out a way to get over my fear of investing in stocks because I needed higher returns to make up for my lost income. At the same time, I didn’t want to lose my shirt in the markets either. The short term solution was investing in index based structured notes which provided downside protection and full upside participation in exchange for not paying a dividend and a five year lockup.

To quantify, I’m about 50% less risk averse to investing in stocks now than just a couple years ago. Part of the reason has to do with the bull market which makes everybody dangerously feel like a genius. The larger part is because I’ve done a lot of reflection and have come up with a way to manage my risk and let go of things which I cannot control.

Several things we should realize before investing in equities (stocks):

* You never truly understand your risk tolerance until you actually have money on the line. I had a fun conversation with a friend who told me, “To not worry about losing money, just don’t worry about losing money.” Thanks for nothing. He said he had no problems losing 30% of his investments in one year, which would equal about $300,000. I then asked him whether he had ever lost $300,000 before and he said no. I have, and it’s not fun.




* It’s practically impossible to outperform the stock markets over the long run. As a result, it’s best to just buy market index funds or ETFs and save yourself time and grief. ETFs such as SPY, VTI, SDY, VIG, EEM are some popular ones.

* The main thing you should be thinking about is exposure and the proper asset allocation since you can’t outperform the stock markets in the long run.

* Sometimes you will get lucky and hold on long enough to make a fortune. There’s alway going to be the next Google, Tesla, Apple, Yelp, etc. You just have to spend time fortune hunting. Money making opportunities are everywhere.

* Even if you find the amazing opportunity, greed or fear will take over letting you make suboptimal trades. I made 60% on BIDU after publishing “Should I Invest In Chinese Stocks?” within six months. But if I held on until now, I would be up 100%. I feared a pullback that never came.

* The joke on the street is that everything becomes a long term investment once you start losing money. Holding on to your market index fund for as long as possible is the best advice for 95% of the people out there. And even the 5% of you who are investment professionals know that all this trading in and out is unsustainable.

* The saying, “It’s just paper losses” is bullshit. If you are losing money on paper, you are losing money in real life because you can only sell the investment for what it’s currently worth.

* The big boys do have more insight than we do. Wall St. sees both sides of the trade when making markets. Hedge fund manager Carl Icahn can eat dinner with Apple’s CEO to learn his vision first hand. Carl can also buy a billion dollars worth of stock and tweet to the public the very next day what he’s done to gain 8%. The solution is to simply invest along with the big boys. Buy Berkshire Hathaway stock or invest in your favorite manager’s fund if you seek an edge.

BUILDING YOUR EQUITY INVESTING FRAMEWORK

 

The best way to reduce your fear of investing is to construct three separate investment portfolios. If you’re incapable of constructing three separate investment portfolios, then divide your main portfolio into three parts. The latter strategy is less efficient due to the likely co-mingling of funds.

1) The Passive Index Portfolio (70% of total equities, aka “Dumb Money”). This portfolio should be your main portfolio which you count on to be there for you in retirement. For most, it’s your 401(k) or IRA in the United States. Build index fund positions with automatic contributions from your paychecks. You should certainly rebalance the portfolio at least a couple times a year to make sure your allocation of stocks and bonds is aligned with your outlook. However, treat the Passive index portfolio as “dumb money” for the most part and just let things ride. Your job is to continue contributing to this portfolio like clock work through thick and thin. (Read How Often Should I Rebalance My Portfolio?)

2) The Actively Managed Portfolio (20% of total equities, aka “Smart Money”). The actively managed portfolio is where you get to play big shot fund manager. Here’s your chance to discover your investing prowess or lack thereof. We’ll certainly get lucky here and there, but I’m pretty sure most of us will underperform the S&P 500 over time. After a while of spending all those hours researching stocks and funds and sweating pullbacks, most will gradually realize their time could be better spent doing something else. As a result, there’s a natural trend for our actively managed portfolios to turn into a passive index portfolio over time. (Read How To Better Manage Your 401(k) For Retirement Success)

3) The Punt Portfolio (10% of total equities, aka “Unicorn Money”). The reason why it’s better to have a completely separate Punt Portfolio is our tendency to steal cash reserved for our passive or actively managed portfolios. You’ll also be able to calculate your returns much easier. The Punt portfolio is where you actively pick stocks and go for broke. You go all in on JC Penney (JCP) at $5.5 hoping for a turnaround instead of a bankruptcy. You buy SINA stock down 20% in a couple weeks due to fears of Chinese ADR delisting due to accounting issues. You buy NFLX at nosebleed levels because House Of Cards season 2 is going to be a massive hit. Your punt portfolio throws all risk management out the window. I have no problems dumping 50% of my entire Punt Portfolio into one stock.

My three portfolios are at three different institutions so I can clearly see performance and not co-mingle any cash:

1) The Passive Index Portfolio is with Citibank Wealth Management where I methodically contribute 80% of my savings every month into an existing index fund holding or new structured note based on an index.

2) The Actively Managed Portfolio is with Fidelity where I can no longer contribute since it is a rollover IRA.

But I did start a SEP IRA through my business. The reality is my rollover IRA with Fidelity has been acting more like my Punt Portfolio recently, but I’ve decided to be more balanced with the way I invest.
3) The Punt Portfolio is with E*TRADE where I whip it around like a gambler.

PSYCHOLOGICAL ADVANTAGES OF SPLITTING UP YOUR PORTFOLIOS

A lot of investing is mental. It’s all about trying to hold on for as long as possible without getting wigged out by some correction. After you’ve accumulated a certain amount, your mindset shifts from growth to capital preservation.

1) More protected from disasters due to different investment strategies. It is unlikely that your three portfolios all have the same investment strategies. For example, you could be actively hedging with your Active or Punt portfolios because you feel the markets are overbought. Or you could have gone 100% Treasury bonds in your Passive portfolio, thereby protecting 70% of your overall investments from a downturn. Diversification saves investments during downturns.

2) You’ve got more hope. Even if you have false hope, creating multiple portfolios gives you a much stronger belief of long term survival. It’s like having multiple engines flying an airplane. If one engine goes down, you’ve still got a good chance of landing safely with the other two still functioning. If you’ve ever seen big cash game poker events on TV, you’ll see competing players ask each other if they’d like to “run it twice” or even more. Even though the odds are the same, there’s a tendency for those players who are more risk averse to ask. When you have more hope, chances are higher you’ll continue to methodically invest more money in equities.

3) You start accounting for worst case scenarios. The biggest fear I have for investors today is unbridled enthusiasm. According to one recent survey from consulting firm EBRI, 25% of people over the age of 50 had 80% of their holdings in equities and 30% had 50-80% of their holdings in equities. It’s as if we’ve forgotten about 2008-2009 already. The historical average equities allocation is 60% according to AAII Asset Institute, which also reports that the average is up to around 63% now. By running multiple portfolios based on passive and active investing methodologies, you naturally start to segment your risk by thinking about worst case scenarios for each portfolio. You then invest accordingly.

4) Easier to invest large sums of money. When you’ve only got $100,000 to invest in the stock market, it’s not that hard to buy 10, $10,000 positions to build your portfolio. But if you’ve managed to build a $1,000,000 portfolio, it gets a little more frightening to invest $100,000 in each stock or fund for example. Those who fear investing larger sums of money tend to be those who’ve managed to keep lifestyle inflation at bay. By splitting your $1,000,000 portfolio into $700,000, $200,000, and $100,000 portfolios, you trick yourself into making sure you’re investing in your recommended allocation in equities. Let’s say your recommended allocation is 80% equities, 20% bonds – it’s easier to invest $560,000, $160,000, and $80,000 in equities and $240,000, $40,000, and $20,000 in bonds in your three portfolios instead of $800,000 in equities and $200,000 in bonds just in one big portfolio. The results may be the same if you invest in the exact same securities, but the point is you’ll be much more inclined to execute your positions with smaller amounts of money. Besides, your investment strategies will be diversified going back to point #1.

5) Easier to assess risk and invest more clearly. If you’ve got one portfolio that is carved out with multiple investment strategies, it’s much harder to ascertain the overall portfolio’s risk composition and performance, especially if you are rebalancing often. By creating different portfolios, your analysis on risk and returns becomes much cleaner. An easy way to screen portfolios for appropriate risk, performance, and cost is through Personal Capital’s Investment Checkup tool. It’s located under the Investing tab on the top right of the homepage. Make sure to click the drop down arrow on the almost top right after you are in Investment Checkup to go through your individual portfolios one by one.

BE IN IT TO WIN IT

 

If we keep most of our assets in cash or CDs, we are falling behind unless we’ve got outsized income. I strongly believe in the two parts offense (stocks and real estate), one part defense (CDs) to build financial wealth over the long run. Bull markets are a net negative for the middle class because the top 5% own more than 70% of all assets.

The ideal scenario for the average person is to experience another massive downturn, hold onto their job, and deploy all liquid assets into the markets to catch an inevitable recovery. But we know thanks to fear, this will never happen, so quit saying you hope for a meltdown to invest more in stocks and just stick to a regular contribution system.

Although stocks have shown to return roughly 8% a year over time, I’m always going to have a wary view of the stock markets because of my experience. It’s like the chef not wanting to eat too much of his own food because of all the unhealthy ingredients that went into making his dish. We just need to make hay when the sun is shining. Eventually a blizzard will come for us all, at which time our defensive shields start kicking in.

source: financialsamurai.com

Thursday

11 Common Investment Mistakes To Avoid While Investing In Stocks


There is only one rule to be successful while investing in stocks and that is “to not lose money!” Despite the information overload these days, people still make mistakes investing in stocks and lose money. I am not an exception in this case as I too made all of the mistakes that I have listed below, at one time or another, while investing in stocks earlier in my investment life. I am sharing here those experiences so that somebody else could learn from my mistakes. So here are those 11 common investment mistakes to avoid while investing in stocks.







Borrowing to Invest in Stock Markets

 

We hear success stories about making easy money in the stock markets from our relatives, friends, stock broker etc. Often we fail to know that only success stories are propagandized and failure stories deliberately have been hidden from us! By the time we hear those success stories, we might have already invested our spare cash in some other assets like real estate, gold etc. Greed spares none! We become enthused. To get the seed money, we would either pledge those assets or would borrow new unsecured debt. To be successful in the stock market, we need to have a long-term view and some cash that doesn’t need to service debt, money that we do not need for at least the next five or ten years. If we borrow to invest, interest adds up monthly to our investment costs. So we will be investing under a compulsion to find more returns than what we pay out as interest. That drags down our chances of success. Ultimately we would end up making only our lender rich!


Investing in Startups and IPOs

 

In order to ascertain the investment worthiness and to arrive at a rational investment decision based on some conclusions, we should look for a business or a company that has at least withstood one economic cycle (business cycle). An economic cycle is usually 8 to 11 years long. Based on how the company or the business withstood tough times of an economic cycle, we make an assumption that it will withstand in the same manner at tough times down the lane in the next 5 or 10 years. Fragile companies and business ideas hardly survive an economic cycle and wither away in a matter of years. Eg., the Internet companies of the 1990s that went bust along with the dot com bubble. So any company without a history or track record is undoubtedly not investment worthy howsoever brilliant the business idea or marvelous the company is. To preserve our capital, it is better to go for OPOs (old public offering) at a discounted price than going for IPOs (initial public offering) or startups.


Heeding to Advices, Tips, and Stock Market Predictions

 

Investing heeding to the stock tips, advices, and stock market predictions is the next big mistake that most of us make. You get a ton of them; from your stock broker, on the Internet, in the dailies, magazines, TVs etc. Never rely on such stock market predictions to invest your money. Heeding to those stock tips outright, even if the information is from paid sources, will rip you off your money because those who make those predictions, those who propagate those tips and advices have their own underlying vested interests in making you buy or sell. You should be able to substantiate yourself the reasons why you invest in a stock or why you sell a stock. Else, you would end up making only your stock broker rich.


Investing in Actively Managed Funds and Through Money Managers

 

Most people spend maximum time and effort earning money but hardly any time managing and growing it. If you want to become rich, you should be able to manage your money on your own. You should learn how to invest rather than depending on an investment manager (portfolio manager). It is not rocket science. All of us are not born intelligent, we learn by reading and listening. Why not apply that here too? If you still cannot find time to research about individual companies, investing in an index fund regularly over time should fetch you average market performance. The results still should be far better than an actively managed fund run by the so called pundits who eat 2% a year of your funds as fees. If the fund managers have that secrets of making you rich, why not they themselves become rich using those secrets rather selling you the investment products? So have in mind that no one else could be a better money manager for your money rather than yourself. Find time and will to make it on your own. Do investments in the stock market on your own or you would end up making only your money manager rich.



 Looking to Time the Market


Another mistake that investors often make is trying to time the market. You either sit sucking the thumb expecting the market to fall more for you to start buying where as Mr. Market does the opposite or you end up selling too soon expecting the price to fall thereafter. Sometimes, people don’t sell at all even after the P/E having run into exorbitant numbers! I would sell my business if some potential buyer or if Mr. Market expresses interest to buy my business for an upfront payment of 40 or 50 years of profit. I buy and sell stocks as if I would buy or sell a business. Anytime is a good time to invest, as long as you are able to find a stock (business) that you believe is undervalued and you have the patience to sit tight. If the price falls below your purchase price, be greedy, try to buy more diverting all your cash flows! Time and markets wait for none. In the short term, the stock markets act like a voting machine where as in the long term, they act like a weighing machine. Only you need to identify when it is a voting machine and when it is a weighing machine.


Investing in a Company with Questionable Management Integrity

 

Investing in a company that has questionable management integrity is like giving your money to a thief for safekeeping. So the companies that care a damn about shareholder wealth maximization, minority shareholder interests, and labor interests are needed to be avoided to preserve your capital while investing in stocks. We have seen a lot of companies vanishing into air along with shareholder money. Honesty is a very expensive gift; don’t expect it from cheap people. If you are still compelled to invest in such companies, donate the money to charity rather than betting on thieves!


Buying into Turnaround Stories

 

Often you hear turnaround stories in the market but they may be the propaganda by those who are already trapped in the shares of those companies. These companies may end up without turning around at all. Transforming a multi-million or a multi-billion company is terribly difficult. Only exceptional people do it and failures are more common than success stories. So unless you have thorough evidence that the information is true to your satisfaction, investing in such turnaround stories will prove to be a blunder. Buy turnaround stories on proven results, not faith.


Investing in a Company That has no Competitive Advantage

 

Inflation adversely affects the purchasing power of consumers. If a company is finding it tough to pass on the rising costs to the consumers due to reasons like stiff competition, it is ought to wither away in due course. It is here where the competitive advantage of a company over the other companies in the same industry, a widening economic moat which the competitors are unable to break, comes to the advantage. Buying a company that has got no competitive advantage puts your capital at risk.


Investing in a Changing Technology Company

 

Technology is changing at a fast pace in today’s world. We are seeing personal computers and laptops giving way to tablets and smart phones. We saw phonograph records giving way to magnetic tape cassettes which in turn gave way to CDs and DVDs and now to pen drives. Same is with fat TVs to flat TVs, film photography to film-less photography. All these made a lot of companies go bust, belly up. Eg. The Gramophone Company, Kodak etc. Who knows what is in store for tomorrow? So why should we risk our money investing in an industry where the technology is constantly changing?


Investing in a Business Outside Your Circle of Competence

 

People get attracted to investing in glittery businesses that seem attractive from outside but fail to create wealth. For e.g., airline business. If you look at the airline stocks globally, they have little history of creating wealth for the shareholders. The net wealth creation in airline business since Orville Wright flew his first flight at Kittyhawk in 1903 has been next to zero. However, as I said earlier the glamour of the business keeps attracting new investors to set up airlines or to invest in existing airlines. It has evaporated capital over the past century like no other business but people still keep coming back to it and put fresh money in. So study the business model before investing in a company. Invest in a company that is within your circle of competence, invest in a simple business that you know the best rather than succumbing to the glitter and glamour surrounding a business.


Investing in a Debt Laden Company

 

Debt, especially huge, is a major concern both at an individual level as well as at a company level. It is like trying to run with your legs tied. If a company becomes solvent, creditors have utmost rights on the cash and assets of a company than the shareholders, though the money has the same value irrespective of whether it is brought in by the creditors or the shareholders! So investing in a heavily debt laden company is nothing but suicidal! Why should we want to risk our capital, hard saved money, investing in such a company?
Investment mistakes are abound and aplenty. Should you screen your stock pick for these common investing mistakes before you make an investment and buy it at half the price below its intrinsic value, undoubtedly you should be successful with your strategy investing in the stock markets. All these investment mistakes have made me prudent but with a cost. That doesn’t necessarily mean that you too should lose money to learn these lessons. Learn from the mistakes of others because you can’t live long enough to make them all yourselves!

source: mtherald.com