When you are pursuing your career passions, it makes it easier to get past the inevitable bumps in the road.
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Long-term investors should always strive to find stocks of publicly traded businesses with decent fundamentals trading at low valuations. The cheaper the stock the better the chances of achieving a superior return.
Always invest in educating yourself. It doesn’t necessarily mean go to college. It could mean learning a trade skill and reading books to improve your knowledge in areas such as investing, technology or any other fields that you may want to pursue.
Buying shares of companies that pay a dividend is like purchasing an income stream. Investing in companies that regularly boost their dividends is like getting a raise on a consistent basis. Of course, it comes with risks. Those dividends need to be backed by expanding free cash flow and a company shouldn’t pay too much of its free cash flow out in dividends. Personally, I prefer that a company that pays out less than 50% of its annual free cash flow out in dividends.
Sometimes you need to save for a rainy year. You need an emergency fund to cover at least a year or more of expenses.
Part of the motive behind negative interest rates is to get people to spend more money. When people spend money it disempowers them. Perhaps this is what central banks and governments want?
There are three ways to save: 1) Spend less than you earn 2) Make more than you spend 3) The combination of No. 1 and No. 2. Understandably, it’s more difficult for some people to do this than others. However, if you want to accumulate wealth you should strive to do these things.
Always be prepared for unexpected life events such as a job loss or cut in benefits. Always have enough cash on hand to pay for 1-2 years of life expenses.
A share of common stock represents an ownership interest of a business.
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Author
William Bias has been researching stocks since 1992 and has been a freelance writer since 2012. He employs a strategic business oriented approach to stock market investing. Archives
September 2016
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