Financial opportunities are usually bypassed by most people in broad daylight. Even though they are frantically looking for such opportunities everywhere. The reason? Most opportunities, especially the ones that might be lucrative in the long run, are dressed in working class garb and are easy to miss. True opportunities look like hard work. Most people want opportunities that look like easy money.
Take investing. I regularly chat with a banking friend of mine about what stocks or companies are a good bet to invest in. That is the thing. You need to take the time to research which company or stock is undervalued, overlooked, and may become valuable in the months, or years ahead. Anyone who invests on speculation, investment gambling on hype and hoping for quick, big returns, is playing with fire.
The best stocks for your investment may not be worth much now but may grow in value years from now. It’s the difference in investing in Bitcoin in 2010, when it was virtually worthless, but recognizing its future value. Or, expensive speculation investing in 2017 and 2018 during the height of cryptocurrency hype. This technique is known as, “value investing.”
It involves knowing a good thing when you see it, critically analyzing cheap, undervalued stocks, and basing investment on research and dispassionate stock market analysis. Investing based on emotional overreactions to stock market movements, like most people do, is the wrong way to do it. Value investing is not complicated. Most people can begin investing with as little as $1,000, or less. Here are some blogs that you can turn to for guidance and advice.
ValueWalk
ValueWalk is a value investing and finance news blog that was launched in 2010. The main focus of the blog is to inform readers about value investing, large asset managers, and hedge funds. The blog is free, non-partisan, and provides insightful content that is read by bank executives, hedge fund managers, and the CEOs of Fortune 500 companies.
This blog is regularly sourced and referenced on mainstream news sites and financial industry research reports. ValueWalk is a great primer and starting point for people who want to learn about value investing.
Value Investors Club
Value Investors Club is a member only investment blog. It is free, but there is an application process that is assessed by professional investment managers. On the application, applicants must offer an investment recommendation to prove their skills in investment analysis and research Why? Value Investment Club members are expected to share at least six investment recommendations amongst each other annually.
Membership spots are limited and extremely competitive. The aim of the VIC club/blog is for members to mutually and financially benefit from sharing well-researched advice. Non-members are free to browse investment ideas, articles, and recommendations that are two to three months old.
Investment should Be a Long-Term Commitment
Investing based on expert recommendations, hype, or panic based on stock market movements is a surefire way to lose lots of money. Do your research, understand your investments, watch the market but don’t be beholden to it, and trust your informed instincts. Additionally, keep your expectations of profit in perspective. Most people only receive 7% to 10% returns on their investments after a decade.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.