Investing in stocks is considered to be one of the most powerful
methods you can use to attain financial independence. However, it’s also a
great way to lose your hard earned money if you don’t know what you are doing.
In the stock market, many people have different strategy to invest. Some uses
chart and technical analyst when picking a stock which can be considered to be speculating. Some
prefers to invest in stocks as if they are investing in a business. This is
where the term Value investing comes
in. It is like an art skills on picking a
stock as an investment. Value investing is a strategy of which so appealing for
beginners because it is designed to both reduce risk and unlock potential
profits. It is an investing strategy that involves on how picking stocks listed
in the stock market that appear to be trading less than or within their
intrinsic value. The term was first inspired by Benjamin Graham who is the
author of “The Intelligent Investor” and
in some circles, he is known as the “Father
of Value Investing”. Benjamin Graham was also a mentor to one of the most
successful investor name Warren E.
Buffett. With this method of investing, many investors had made fortune
in their investing career. Some of the successful investors such as Peter Lynch,
Joel Greenblatt, Ray Dalio, and many more had done very well using value
investing method. These investors had used value investing principle when
picking a stock to invest. Anyways, are you curious about this method of
investing? If you want to invest in stock safely, I think value investing is the
right investing method for you. In this content,
I would share with you readers the investing method of Value Investing, and how
you can apply this investing term to the way you invest in the stock market.
Moreover, I would like to share why I use this method as my investing strategy
to pick my dividend growth stocks to my portfolio holding.
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Saturday, September 21, 2019
Tuesday, September 17, 2019
8 Traits of People Who Are Millionaires
Many people work hard in their career hoping they can someday
become a millionaire. I think most people in the world would answer “yes” if
they were asked whether they want to become a millionaire. There are studies
that show that there are 10 million “millionaires” just in the United States
alone. So how did millionaires become wealthy in the first place? Did they
inherit the money from their wealthy parents or maybe win the
lottery? You would be surprise when I answer this question. The truth is that
62% of billionaires in the United States
are actually self-made, meaning
that they got to where they are by themselves. I was curious about millionaires
that became wealthy and went to do a deeper analysis by reading the book “The Millionaire Next Door” by
Thomas Stanley. I read the book and learned that 80 to 86% of millionaires in the United States become one by
creating their own wealth. I was surprised with these facts about millionaires.
I always thought that people who are wealthy made it is because of financial
support from their parents or got lucky in certain aspects of their life. So
what made these millionaires or billionaires different from us? Why are they
able to achieve this magnificent wealth by themselves? The truth is that the traits of millionaires do have can be adapted by
anyone who chooses to adapt them. I am willing to share my knowledge and
research about the traits of millionaires in this article.
Saturday, September 14, 2019
12 Steps to Purchase Your First Rental Property Investment
For generations, real estate investment has been used by
many investors who seeks passive income stream. Not only it provides excellent
passive income coming in your pocket but it can also increase your overall
asset value and earn higher rental income futures ahead. Real estate has
produced many people to become wealthy. No wonder, my brother and my dad had
become a real estate investor themselves. They are able to benefit from the
passive income as well as capital appreciation from the properties they own.
It’s almost everyone’s dream to be able to own a rental property. I myself want
to own rental properties since there are many benefits of owning them. I’m
blessed that my dad let me collect the rental income from one of the property
he owns. It allows me to receive passive income that I use to purchase more dividend
growth stocks. My dad was also blessed since the property he let me manage
actually increases in value which of course made him wealthier. Anyways, the
question to becoming a real estate investor is how to actually become one.
Buying an investment property is a big deal. It’s not like buying a few shares
of stocks in the stock market that only require a small amount starting capital.
Moreover, many people don’t have the starting capital to purchase one since it
requires you to have a huge sum of money. The reason why I’m not a property
investor yet (own by myself) is also because I don’t have the knowledge and the
capital to invest in one. But this doesn’t stop me to learn more about it. Because
of my curiosity and ambition of owning one myself, I decided to study this
topic on the internet. After hours of
research on how to purchase your first rental property, I would like to share
the knowledge and tips in this article.
Wednesday, September 4, 2019
The Meaning and Benefit of Having Economic Moat
The term Economic Moat is a term that is used by many value investors in the investing world. The bigger the moat means the safer for the
investors to invest their money in the company. It was a term that is
popularized by a successful investor Warren
Buffett. Economic Moat refers
when a company or business that has the ability to maintain its competitive
advantages over its competitors in order to protect market share and its future
earnings. It’s like a castle in the olden time that have a moat around it, the
moat functions is to protect those inside the fortress and their enemies from
coming in. Having a stronger moat such as having water surrounding the castle
makes it difficult for enemies to attack. This is similar in the investing
world. It’s great to buy stocks which companies have a strong economic moat.
These companies are able to sustain their business and to stay one step ahead
of their competitors. One of Warren Buffett’s secret of success in his
investing career is to invest in companies that have strong economic moat.
Warren investing in companies with great economic moat allowed him to hold
companies for a long period of time. He likes to invest in companies that have
a long business prospect so that he’s able to keep holding them in his
portfolio without the need to sell the companies often. In this article, I will discuss further about economic moat and why
it’s important in the investing world. I will then also explain about how to
spot whether a company has an economic moat and why I prefer investing in
companies with moats around in my dividend growth portfolio.
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