Use Your Approach, Cost Control And Awareness To Deliver Investment Success
3 key contributors to a solid investment portfolio are approach, cost control and awareness. There are more than 60,000 investment choices for your portfolio! What do you pick? Use the 3 keys to select the best opportunities for your situation by doing some basic research and using good judgement.
Any and all time, effort and money put into investing produces direct returns for your future.The excellent news is that you can readily learn all you need to know to invest well. Investing produces the highest possible returns you will ever make for your time.
The Three Key Contributors:
Approach – the investor’s basic approach to the market
Cost Control – investors must control and cut every investment cost
Awareness – superior investors develop good economic and market awareness
Make these three significant keys as contributors to build an excellent portfolio. Consistently make them core parts of your investment selection process. Use them well and build financial security and retirement independence on an investment portfolio that meets your needs.
All three of these key factors significantly contribute to investment performance. Use them all. Learning about and using them, guides you towards building a portfolio on a solid foundation. A well positioned portfolio produces income and a good upside performance.
First, you need to get comfortable with investing. Do so by building knowledge. Then begin with a conservative income portfolio. Once you see some solid returns, your confidence will grow and you will take the next steps needed.
After you have an established an income producing portfolio, broaden and refine your approach to increase performance. That opens the door to benefitting from strategies to increase returns while managing risk.
Three distinct and different approaches can give investors great success:
- Income Investing – dividend paying stocks in established or growing companies
- Growth Investing – stocks rising on improving revenue and income growth
- Speculative Investing – the high risk, high return investment flyers
White Top Investor blog post, 3 Distinct Approaches To Investing, discusses these approaches.
2. Cost Control
Every cost of investing and of each investment directly impacts your return and changes your future. For superior investment performance you must squeeze every possible cost out of your investing activity. Remember, any cost avoided or saved today has a compounding impact on your future. Be an absolutely relentless about cost control. Always push for lower costs and always look for ways to lower any and all expenses.
Intelligent cost control is a must. Do not cut a cost if doing so cuts off a needed service, information or essential advice. Some of the best money you can possibly spend investing is on quality financial planning services from a qualified and able professional.
Cost control is a theme repeated visited in many White Top Investor blog posts. Getting and keeping costs low, produces far superior results; the difference between adequate and comfortable retirement independence.
To invest well and consistently, investors must have awareness of both the stock market and economy. This helps investors do well because the stock market and economy can often seem completely out of sync. When investors know what to look for, both the stock market and economic picture seem much clearer.
Building awareness of the stock market and what to watch is a big topic covered in multiple White Top View blog posts. A challenge for a new investors is getting a comfortable grasp of the broader economic picture. White Top View blog posts also cover this subject to give you the needed understanding. That allows you to become comfortable and aware of how the bigger economic picture affects you and your economic future.
Change is the only constant and that certainly applies in every aspect of investing, the stock market and the economy. It works while it works, but when a better idea or a disruptive technology or new players enters the market, big change happens. Well established profitable giant companies can pose market share or even be completely displaced by new players.
Witness the turmoil among mobile phone producers over the last few years. From the rise and fall of Motorola, Nokia and Blackberry there are lessons we can learn. Disruptive change affects even the biggest dominant player in a market. Investors must pay attention and be aware of such changes.
Future blog posts discuss ways to both access and differentiate between dividend paying companies. That will help you pick from among the best for your portfolio. Other posts will discuss combining approaches to the market that increase performance. Additional posts will focus on cost control as well as economic and market awareness.
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Have a prosperous day!
These discussions and information intend to help you better understand markets and investing. I am not a financial or investment advisor; opinions are for informational and educational purposes only and are not intended as investment advice. For syndication of the site or blog, please contact info@WhiteTopInvestor.com.
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