Monday, 16 January 2012

Learn Value Investing

Investing Myths:
Investing is risky, "like gambling".
It is time consuming..
It is too complicated, "like rocket science".

Yes, investing is risky, complicated, and time consuming, if you don't know what you're doing.


What is value investing?
Value investing is buying quality stocks when they are undervalued.


How do you know the stock is quality stock?
How do you know when the stock is undervalued?


















Summary


Buy quality companies when they are undervalued.


Dividends are key, especially increasing dividends, as that is going to increase the amount of money you receive year after year.


Investing is not risky if you know what you are doing.  


You can minimize this risk by investing into recession proof companies that provide solid services and products that are going to be around for 20 years or more.


You can minimize this risk by investing into companies that has history of increasing dividends year after year.

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