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Choosing The Best Stock Mix – Picking Investments

  • By admin
  • August 26, 2016
  • 54 Views

Introduction:

Investment is a big thing. When you invest in a portfolio of assets like stocks, bonds, etc, you expect a return, a profit on your investments.

Much has been said about the behavior of investors. There are risk averse individuals who do not like to take risk at all and on the other extreme are hardcore risk takers, businessmen and industrialists who believe that they can grow big simply by taking big risks.

More risk taking should bring about bigger returns. However, such is not the case. It is often the moderate risk takers who walk out with the trophy and with the profits to boast. These gentlemen are usually winners. Their moderate risk taking venture usually pays off, and if you want to be a winner, you must pay close attention to what these winners do.

So what do these gentlemen do that make them better than the rest?

Here we will highlight a few strategies and tips for you:

Which Stocks Should Be Bought?

One principle that Mr. Warren Buffet (who is one of the most successful investors in the world) lives by is that you should only invest in those stocks whose business model is understood by you.

Invest in only that industry whose business mock-up you understand and this could reap better results for you as it is in your area of interest.

How Should Stocks Be Bought?

There is a quote by Benjamin Graham that if you are on the lookout for common stocks, you should purchase them like the grocery you buy at the bazaar and not like the expensive perfume you buy from the mall.

This makes sense, a lot of sense really. And it goes with the principle of moderate risk taking behavior.

Short Term, Medium Term Or Long Term?

Although keeping a short term and medium term portfolio of stocks is not bad at all, but care should be taken that most of your stocks are long term, as it’s not all about making as much money as you can make in the short run, but keeping money in the long run.

Miscellaneous:

  • Buying the low priced private equity of a growing firm.
  • Walking against the tide – Buying when everyone is selling.
  • Relying on proper Outsource Financial Research.
  • Understanding the market scenario by poring through financial books and periodicals and taking the bigger picture into account.
  • Understanding that different techniques work well for different people.
  • Choosing a particular industry and then relying on market signals to guide you in your buying decision.

Conclusion:

However, taking a logical approach through Outsource Financial Research seems to be the consensus among big businessmen. This is what Market Quotient, an Outsource/Offshore firm headquartered at NJ, USA specializes in. We cater to a variety of financial research projects that would equip you to take informed decisions.

Mail us at contact@marketquotient.com to know more. We are here to help you every step of the way.