Do You Think Investing is Too Difficult?
There is a common misconception that people have regarding investing, especially investing in stocks and that is, “investing is difficult”. Most people believe that investing by themselves is too complicated therefore most folks leave it to the so called professionals. I like to call these professionals, mutual fund sales people, sales people who work on commissions. A sales person’s interests may not be in-line with your interests.
Keep in mind that mutual fund companies make money even when your investments don’t. Therefore it is in your interest to invest for yourself by yourself. Investing is simple, buy shares in quality dividend paying companies when they are undervalued. This is my mission, to teach you in simple easy step-by-step instructions how to determine when a share is undervalued, and what is a quality company.
Basically look for companies that are:
- Consistently profitable over the long-term
- Continue to increase dividends year after year (like Johnson & Johnson, who have had 47 years of consecutive dividend increases)
- Have a durable competitive advantage (like Coca Cola)
Investing is simple, but don’t take my word for it:
"Stocks are simple. All you do is buy shares in a great business for less than the business is intrinsically worth, with management of the highest integrity and ability. Then you own those shares forever."
- Warren Buffet (self-made billionaire, and CEO of Berkshire Hathaway)
"Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert."
– Peter Lynch (one of the greatest stock investors of all time)
“Warren Buffets’s secret, and really that of every successful investor, is to hold on for a very long time. You could be out of favor for two or three years. The critical thing is, if you have good stocks, to really stay with your philosophy and you should do well. Buffett has obviously done superbly by using this fairly simple system.”
– David Dreman (author and founder of Dreman Value Management)
Give investing a try; keep your mutual funds for now if it makes you feel safe. But start investing in quality dividend paying stocks today, and start small, take your time, follow the simple steps, and you will prove to yourself that investing can really be easy and profitable.
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