Hope this blog post finds you well :). As I approach 11 years as a stock investor (this month!) I want to share three key factors that make for a successful investing journey.
The reason why I am so confident about these “factors” is that these are things I’ve personally done since I started investing. Some I’ve learned along the way.
The finance media and Wall Street do a great job making investing seem harder than it is. I got news for you – successful investing at its core is not complicated in any way.
If the steps I outline below look familiar is because the foundation of successful investing hasn’t really changed in the past ~100 years. I can at least say it hasn’t changed for me in over 10 years.
Here is what has worked for me:
Invest In Companies of QUALITY:
Investing in “quality” might mean different things to different people. Here is what it means to me:
(1) A strong brand that is widely recognized not only locally but also internationally.
(2) A business that is a strong leader within its respective industry – with high levels of market share.
(3) Healthy financials and a track record of profitability and success.
(4) Clear strategies for the future that show what the company is doing (investments, etc.) to remain relevant for the next 10, 15, 20 years.
Something you MUST understand about stock investing is that, when you buy a stock, you are buying a piece of business. And guess what – bad things can happen to great companies.
You can do all the research needed and something random can happen that can affect the price of the stock. An excellent way to “protect” yourself from this randomness is to be well-diversified. Being diversified means building a portfolio where you are buying stock in different companies.
Or, perhaps, you are including some ETFs and Index Funds so that you have money spread out around different investments and not just one.
The way you “win” with investing is when the winners in your investment portfolio outperform any “losers”.
And by the way – an investment portfolio is built over time. This is not something that you built from one day to the next.
As you begin your investing journey, you will notice how volatile the stock market can be. It can be thriving and flourishing for several days or weeks and then all of a sudden there’s a downturn on a random day. This is the nature of the stock market. There is no way around that. As the saying goes: “You have to take the good with the bad”.
For that reason, the important thing is that you do your research up front so that you don’t panic when a downturn occurs. Having the patience (& tolerance) to feel comfortable with the “ebbs and flows” of the market is yet another important “key” of successful investing.
And that’s all folks! Thank you for reading. Also – let me know in the comments if you would add anything else to what I’ve listed above. And/or if you have any questions.
And by the way – What you just read about is just a sneak peek of all the amazing things I teach in the Stock Investing Boot Camp for Beginners. If you want to know what the class is all about, Click here.
Cheers to Health & Wealth!
Mabel ❤ $
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