In the late 1980’s Japan seemed set to take over the world. The Japanese stock market was the envy of the world and the Nikkei stock index was around 39,000. Today it is less than 10,000. One of the bad stock investments of our time would have been to buy a basket of Japanese stocks […]
Read More...Investment risk management includes diversifying to balance business risk, being wary of overpriced stocks, and not confusing short term goals with long term investing techniques. Picking new winners is always the name of the game but picking them at the best price, diversifying to reduce sector risk, and choosing stocks whose prospects match your long term goals are good ways of managing investment risk.
Business risk is the risk of competition. Effectiveness of management, developing and promoting products, penetrating markets, and doing so in the most cost effective and profitable manner all go into a profitable company. Business risk is also […]
We suggest that you think of mid cap stock investing as the Goldilocks approach to investing. In Goldilocks and the Three Bears the little girl samples the porridge of the three bears and finds that one is too hot and one is too cold and one is just right. To a degree large cap stocks […]
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