Monday, January 26, 2009
Sunday, January 4, 2009
The Standard & Poor's Guide to Long Term Investing.
7 Keys to Building Wealth:
1. Pay Yourself First
- save for investment before consumption. Hold Stock for the Long Term
4. Dollar Cost Average
5. Keep Your Costs Down
6. Know When to Sell
- take objective look at investments periodically;
- revisit if the reason you bought the stock originally still apply today;
- look for red flag: decline of earnings or dividend growth; higher than average P/E; management change; weakening balance sheet; sharply falling stock price;
- sell some of the shares if stock position is too large (e.g. >10% of portfolio);
- consider stop-loss order 10-15% below current level
- enjoy the effect of compounding as soon as possible
Guide To Analysing Companies
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