Friday, May 1, 2009

Invest like the Rich: Returns may be better (10-Aug-08)


Most people view the stock market as an effective way to meet their long-term investment goals. They place a major part of their savings in it and hope for a decent return over time. Sadly, not every investor understands what it takes to be successful at stock trading.

Here' a brief summary of how the rich invests:
- They do more research that the average investor
- They are interested in the type of business they are investing in, the company's fundamentals, its business model and how unique the model is
- Look into the long-term potential growth
- Have a good understanding of how the business is being managed

To be a successful investor, you need to research companies for their value. You need to focus on why you are including the stocks in your portfolio and accept the normal behaviour of your stocks in the face of different environmental conditions.

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