How do you choose your investments?

1. 60

   RobertoPortalesposted 12 years ago

   How do you choose your investments?

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2. 61

   chamiljposted 12 years ago

   I do not speculate. First I look the past performance of the company then look at the future outlook. If valuations are OK I will invest.

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   Jon Peterzposted 12 years ago

   Track record is important.  For individual stocks, PE ratio, PEG ratio, and how the company compares in these valuations to its peers.  Then look at the macro-climate.  Seasonality should be considered.  It's better to invest in the Fall than May or June after a seasonal run-up.  Overall I prefer the built in diversification and simplicty of ETF's.  Lots of approaches to investing.

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4. 58

   Alternative Primeposted 12 years ago

   The term "Investments" encompasses an extremely wide variety of products -
   
   If you choose investments on your own without any quote unquote, "Professional" assistance, it can evolve into a very difficult and often times confusing endeavor rather quickly - The shear number of options in Real Estate, Debt & Equity Securities, Precious Metals, Collectables etc. containing varying degrees of complexity of which the novice would need to become educated on, is unquestionably a daunting task even for those individuals who might be considered "Sensationally Savvy" prognosticators -
   
   If however you decide to employ the services of an "Advisor/Planner/Accountant" or other professional to help you choose wisely, the first step in the overall portfolio planning process is for the agent to perform a complete and thorough evaluation of your financial Situation/Condition to accurately gauge "Suitability". This is an essential element required by law and the NASD before any "RECS" can be made - A financial profile must be Crafted & Drafted and the findings subsequently applied to your individual situation by the Advisor, one in which includes documented INCOME STREAM - NET ASSETS - CURRENT INVESTMENTS - RISK TOLERANCE etc. - And then, and only then, can an overall investment selection strategy begin to take shape - "Choice" of investments subsequent to financial enlightenment, is then usually overridden by "Suitability & Common Sense" making the process that much easier - Just A thought - 
   
   Always consider "Fundamentals" when investing in Equities & Debt Securities  -"Mild Year Round Climate" when investing in Real Estate - Unless it's a Ferrari, Lamborghini, or Gibson Guitar, simply flip the coin of your choice when investing in "Collectables"  -

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   Jonesy0311posted 12 years ago

   Past performance is no guarantee, but it can at least give you an idea of the volatility. I look for funds that have outperformed the indexes over the past decade or so. Index funds are also a good place to start investing. I generally stick with mutual funds. For retirement, I go with "target date" plans that start risky and gradually become more stable as the specified date approaches.

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   hemmerlingposted 12 years ago

   Start by looking at what has already been done. Strategy screeners with backtesting capabilites are out there. One that I use is Portfolio123. Use the code HKURTIS to get a 45 day free trial and see what I mean. You can mimic trading styles of Warren Buffett, dividend growth, high-growth, whatever plus you can see whether it really has made money over the last 10 years or is some outdated concept no longer relevant.

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