More time in equals more money out!
More time in equals more money out! Or you get out what you put in…and a very nice increase! That well-known wisdom of using time well certainly applies to investing. When you make the effort, the market delivers significant rewards. Today we discuss committing an hour a week to understanding investing and your portfolio as Part 2 in the 3 part White Top View Series, Basic Time.
Links to all three parts of the White Top View Series, Basic Time are at the end of this post.
Take Time To Add To Your Returns
Even if you do not want to actually manage your own portfolio as a do-it-yourself investor, educating yourself about investing can significantly improve your returns. This happens because an informed and knowledgeable client is a better client. Financial advisors can deliver more value and opportunities to informed, knowledgeable clients.
Knowledge makes any client of a financial advisor better because it is easier to help informed clients make more investing progress. Being a better client is the fastest way to better returns. This especially applies to someone at the earliest stages of investing knowledge.
It also applies to someone unable or not inclined to devote more than the least time to investing. To be considered one of the best clients by your advisor, become an informed investor. Knowledge lets you find and see the best opportunities and gets you prompt attention. The best clients get the best service and the best results.
The most desirable clients of an advisor are knowledgeable as well as willing and able to make decisions. Advisors see them as most responsive to the ideas and suggestions.
Informing yourself about markets is like learning how to use a compass. With knowledge you will develop your own market compass. Your knowledge compass will give critical information on the market direction and opportunity. Knowing helps you understand the direction and action you need to take to reach your investing goals.
One hour a week
Anyone that has one hour a week for investing should use that time do a some basic things. Naturally you will want to read the White Top View blog! Also you need be aware of news events that impact our world and investments.
Then, when you take an hour a week to check your portfolio begin by understanding what you own. Take the time to understand each stock, ETF, bond or fund you own. Get to really know what it is. Be able to explain it to a six-year-old of to your sharp grandmother. Investigate until to know what each company. Learn the percentage of your portfolio invested in each position.
Answer Three Critical Questions
What does the company do? Be able to explain and understand what the company does.
Why are you invested in this company? Be sure there is a good reason to be a shareholder.
What do you expect from this company during the next year? Make sure your expectations are realistic and reasonable.
Check Out The Investor Presentation
Use Google to search for the website for each company. Use their website to learn about the company. Most corporate websites have an investors section, tab or link. Go there. Review what they say in their ‘Investor Presentation’.
Typical investor presentations are slide decks or shows that give you background on the company and the current state of operations. Most are well done and reasonably present the company.
Naturally they are not critical of themselves but do give a positive presentation on the business of the company and the current stage of development. For the time being we accept the optimism; our critical thinking comes later.
Generally company presentations point to the ever better or improving outlook and, we hope, a nice stock chart showing a rising price! At least we hope the price is going up and not down!
Take A Step At A Time, An Hour At A Time
There many more things that we can do to look at a company. We will cover those specifics in future discussions. For now work your way through your list of companies one by one. Take a step at a time, an hour at a time.
Be patient and satisfied to learn one thing at a time. By using this approach you are taking a solid first step to understanding each investment in your portfolio. Just keep at it and your understanding and knowledge will steadily grow.
At this stage don’t be too concerned about achieving a full or complete understanding. This is a long journey. Make it a pleasant and enjoyable tour. Once your hour is up put your work away.
Then, next week, when you have another hour, return and do the same introductory review of the next company on your list. In a few weeks you will be more comfortable and able to understand each new company.
In our next discussion we will cover the next stages of investigating a company and how to begin considering where each fits into your portfolio. We will also consider how to most profitably use more time.With time and knowledge investors can grow their wealth but basically, more time in equals more money out!
Next in Part 3: An hour a day to invest or eavesdrop we discuss how using an hour a day lets many investors manage their portfolios well.
Spread the knowledge!
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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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Links to the White Top View Series, Basic Time