Smart investors use smart diversification. Used well, diversification reduces portfolio risk. Diversifying well to reduce risk requires knowing how to make diversification choices and selections. The best diversification choices reduce risk without sacrificing portfolio performance. Too much diversification can ensure a portfolio underperforms the market without providing greater risk reduction. This post begins the Smart Diversification series from the White Top View blog that outlines how smart investors use smart diversification.
Investors Prosper With Wealth Building Pyramid Portfolios. Pyramid portfolio strategy is one of the best things a new investor can learn. Investors can build financial security and retirement independence using the pyramid inspired portfolio approach. Any investor from the newest beginner to the most knowledgeable, advanced and experienced, can learn and use the pyramid portfolio strategy. No job or employment can possibly pay you as well, over a lifetime, as investing can. You will gain more from the hours used to learn and manage your own investments than from any other activity in your lifetime.
Successful investors consider risk, reward and the investor’s knowledge and ability before investing. Income, value and growth are all basic approaches to investing.
3 more small investor advantages, part 2 of the Small Investor Advantage series. Advantages include the edge in liquidity, playing the stock market pecking order and new investment opportunities, all unavailable to large accounts. Investors can play the smaller end of the market for big profits. Be aware, those big profits get earned by taking risks. Unless you know what you are doing, stay away! The payoff is big for investors with knowledge and experience. You can learn this end of the market. But doing so takes time and much effort. Triflers and gamblers regularly lose playing here, knowledge and experience wins most often.
Small investor advantages Warren Buffett knows. Warren Buffett tells us that small investors have a growth advantage over huge investment accounts. This post discusses how that can be. When you or Warren Buffett are considering an investment opportunity, the opportunity must have the potential to make a difference to your portfolio. The advantages include, 1. Returns make a big difference, 2. Oh yes! Size matters! 3. Faster growth numbers, 4. Liquidity advantage, 5. Playing the pecking order, 6.New listings and startups. 1st of 2 parts.
Warren Buffett explains the investment value of gold. Warren Buffett explains his view of gold in a 2011 letter to shareholders. He makes the point that buying productive assets is an essential for investing success. Gold produces nothing. Good investments grow; they produce. We need to plant good investment seeds in our portfolio. Those are our well researched positions. Then we carefully attend to our portfolio to see it grow.
Investing success means knowing how to control 10 paralyzing mental blocks of investors. By controlling mental blocks knowledgeable investors give themselves a huge advantage. That advantage empowers you to control your investing future and build financial security and retirement independence. The 10 Paralyzing mental blocks: Fear, Greed, Attachment, Stubbornness, Helplessness, Optimism, Running with the herd, Changing yesterday, Isolation, Confusion. Continues Series, Mind Game, a discussion of emotions and psychological aspects of investing.
Canadian Investment Market Base opens the door to making money. Canada developed because of natural resources that remain the base of the Canadian economy. A sophisticated urban, manufacturing and technology culture has developed in Canada all built on a base of resource exploration, development and production.
Although you can be a little bit invested you should not be casual about where or how you invest. Investment thinking means carefully considering even a small investment. Consider it as seriously as you would if buying the entire company. You don’t want even a small bit or single share unless it would be worth your while owning it all. Warren Buffett teaches us, “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” That point of view starts you thinking like a capitalist. Your first obligation as a capitalist; always keep your money safe.