Tuesday, 08 September 2015 @ 11:52 AM ICT
Contributed by: News
If you take the advice of the man widely considered to be the most successful investor of the 20th century, then you’ll see that dogged, minute-by-minute attention to the stock ticker won’t guarantee you stock-market success. In fact, Warren Buffet says, ‘Lethargy bordering on sloth should remain the cornerstone of an investment style.’
For business owners with little time to spare, it takes a sensible approach to lock in stock gains. Remember that the stock ticker represents businesses – real companies with products to sell, customers to satisfy, workers who need to be paid, supplier to negotiate with, and budgets to meet. Think of stocks the way you, as a business owner, would think about your company.
Invest in businesses you understand
The great fund manager Peter Lynch tells individual investors to invest only in businesses they understand. There are more than 200 listings in the stock market. You’ll need years, if not a lifetime, to know all the companies and make an intelligent assessment of each stock. Instead, focus on industries that you understand and are a part of. You day-to-day interaction with customers, competitors and suppliers provide valuable insights that will allow you to make intelligent and informed decisions about which stocks to own.