Live World Indices are Powered by Forexpros - The Leading Financial Portal.

Sabtu, 04 April 2009

three major steps


Adam Khoo

to me
show details 9:30 AM (12 hours ago)
Reply

==============================
============
"How To Make Your Fortune From The
Greatest Investment Opportunity
Since The Great Depression!"

=> http://www.ProfitFromThePanic.com
==========================================

Hi Tjhai,

What do you need to know to be part of the profit making minority?
Well, there are three major steps to becoming a successful value
investor:

Step 1: Identify very good businesses
Step 2: Buy their stocks at a bargain price
Step 3: Wait for the market to realize the stock's true value

Step 1: Identify Very Good Businesses
The first thing to understand when buying a stock - you are not
purchasing a lottery ticket with a random chance of its price
moving up or down. Buying a stock means that you are buying part
ownership of a company that is listed on a stock exchange.

For you to make money, you have to only buy VERY GOOD businesses.
It should have a solid business model that brings in earnings
(sometimes termed as profits) that are CONSISTENT and PREDICTABLE.
Ultimately, it is a company's ability to generate higher profits
every time that will drive up its value and consequently its share
price.

Many businesses are able to earn high profits from time to time.
However, their profits are usually inconsistent and usually decline
in the face of new competition or when demand for their goods and
services decline. These are companies that you want to avoid buying!

Very few companies (less than 5%) can make CONSISTENT and
PREDICTABLE earnings over the long term. These good businesses are
the only ones that you should invest in.

Step 2: Buy Their Stocks at Huge Price Discounts
Once you have identified a great business, the second step is to
buy its stock only when prices are way below their true value
(known as intrinsic value).

For example, if a company like PepsiCo (NYSE: PEP) is worth $74,
you would buy it when the stock price is trading at a good discount
like $55. Eventually, the market would push its stock price back to
or above its intrinsic value of $74.

Step 3: Wait for the Market to Realize the Stock's True Value

Finally, great investors know that fortunes are not made overnight.
They have the confidence and patience to wait until the market
recovers, before taking profits when things get too bullish and
stock prices become way overpriced.

Many people have the misconception that the world's best investors
are able to predict the market and somehow time their investments.
The truth is that NOBODY can time the market consistently and
accurately. Great investors like Warren Buffett, Peter Lynch,
Benjamin Graham and John Templeton never made their billions by
buying exactly at the bottom. They merely bought somewhere NEAR the
bottom - good enough for them and anyone else.

They have NO IDEA WHEN the market will turn or where the market
will go in the next few months or even the next few years. All they
know is that if they are patient enough, the market will turn
bullish ONE DAY.

To your investing success,
Adam
http://www.ProfitFromThePanic.com/index1.htm

Tidak ada komentar:

Posting Komentar