Value Investing

Hey there,

Thanks for your comments. If you were saying and doing research on company stocks, how many types of companies are there in the entire stock market? Which stock market are you referring?

Are you doing value investing too? If so, is it in stocks, shares or property?

Hi,
This is a nice response, great information for me and I really learn something new.

I am in stock market for 6 months. I learn a lot about fundamental investing from books and I apply them carefully for my investments.

I am also looking at dividends. Dividend is a great income source for stock investment because it can help to cover losses.

Well, there are thousands of stocks. Maybe even millions. After all, there are several thousand in the US alone. This is not counting world trade. I am not familiar with the world trading though.

I cannot give you much more than this at this point. I know what the value investing is, but I don't know the particulars. I too have just started reading a book about investing and this topic was covered right away.

One thing you want to remember when investing is that you want your portfolio to be diversified. Which means you want them to have many different kinds of investments. Not just stocks. Property is a great way to invest. Houses are ok, but there are no guarantees that you will get renters or for how long. The costs of a house rental plus utilities is too much in todays economy. Many are looking for apartments. So I would get apartment buildings or commercial buildings with apartments above. Preferably ones with businesses already going and tenants too. That way you can start making a profit right away. The rent on these of course will cover costs. I think you have to cover the existing leases, but not sure about that. Carefully consider this though and make sure you look the property over carefully. Run down or dilapidated properties will get you sued because most have asbestos or black molds. Very toxic.

Then you also want to invest in long term options. CD's, mutual funds and even bonds are all good. Bonds are not as popular as they once were which is a shame. Back in the day you could buy some $25 bonds and 20-30 years later they would be worth millions upon millions. These days, I am not so sure. More likely a few thousand if you are lucky.

Ok, since you talked about diversification..

For a beginner value investor, would it be wise to have a few stocks so that you can manage your portfolio easier?

If you do your due diligence, it'll be much better to have a few big winners or tenbaggers than to have a wide diversification, thus losing focus and control of what you bought or sell?

Value investors are usually interested in what they purchased and their overall personal portfolio management. In your opinion, will you rather diversify or have a laser focus approach for your financial portfolio?

These are just some of my thoughts

Tenbaggers are ok, but with bigger stocks come bigger risks. The thing about diversifying is that at least you can pretty much invest in anything. Slow growing accounts like mutual funds can be invested in and then left to itself. That way it serves as a back up if you make a mistake investing in what you thought was the wave of the future. The thing about established stocks is that they are expensive to invest in and they won't grow much more than they have already.

On good way to invest is to check into your local energy company and see if they have stock options for customers. Gas is a great one. I have no idea where you live, but this is a common thing in America.

I think that whatever you decide to invest in, you should practice due diligence and make sure that the research is complete before investing anything.