Wow…. We had an insightful time at the recently held “The Stock Investor Conference”. I’ll refresh on some of the points mentioned at the conference, so if you missed the conference, you can catch up on this:
- Investing in stocks is a deliberate act to buy into the future profit of a company or business;
- Never forget that as a shareholder, you are a part owner of the company;
- The major thing to know when investing in a company is if the company is profitable?; if the company is making profit at a growth rate?; how often the company pays dividends?; is the company having enough assets to pay off its liabilities?
- You can get answers to these questions from the AGM or you can demand to be furnished with the state of affairs of the company. You can also request a meeting with the CFO for better clarification because you are a part owner;
- You also need to assess the efficiency of the firm in managing its resources because if the firm is not well managed, there will be no returns;
- You have responsibility on how you allocate your assets. Gone are the days when people give money to stockbrokers without taking responsibility for their investment and having nothing to show forth;
- Developing interest in the operations of the firm will keep you updated of the activities of the firm and you’ll know when to divest your shares;
- Diversifying under sector allocation is a way of reducing risks. However, apart from knowing the individual characteristics of each stocks, you should also know the overall guiding principle of each of the sector you wish to go on to.
Let these tips direct you when investing in stocks.
We believe in you!
To your financial independence and freedom