People use to wonder how investment gurus make billions in investment? It is a fact that these gurus will not invest in technology companies. They will admit that they will invest only in a business that they fully understands. These gurus follow some strategy when investing.
Here is some general market advice.
1. Don’t be selective and run after the same stock.
2. Always try to buy when there is panic in the market.
3. Try to buy undervalued and fundamentally strong stocks.
4. Buy only those stocks which have grown in top and bottom line over the past few years.
5. Invest in those companies with a proven management.
6. Avoid the companies which are in loss.
7. In general market the Growth in earnings and PE Ratio per share are the key.
8. One must look for the dividend paying record.
9. If you want sure return then invest in stocks.
10. Stocks have been the high yielding asset class over the past.
11. Stocks are an asset class.
12. Growth is the basic property of any asset class.
13. Buy when everyone is selling and sell when everyone buys.
14. Try to invest a fixed amount each month.
In other case you were thinking about buying a house in the next few months, try not to put your deposit into the share market. Be more sensible to put the deposit money somewhere more stable even if the returns look lower. Share can rise and fall dramatically in the short term, so be careful.
If you need help drawing up a financial plan, as many people do, don’t hesitate.