What Sounds Most Right about Stocks, Bonds and Mutual Funds May Not Be So Right – 2
By Saghir Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
Think of buying index fund, for example you could buy total us stock fund. This will give you opportunity to be the shareholder of many well-known chip companies are these portfolios will also have medium companies you will be the owner of some small companies. Doesn’t that make sense. very little work and your portfolio is diversified. You are the owner of many companies. Let me share with you can use the same techniques buying international stock. You will have the opportunity in the international market to pick and choose for example you can buy a fund that invest only in Europe. If you believe in European stock market or you can combine with some other companies. You also have an option in the category to buy American or European countries combine. If you are a great believer technology some of the companies like Amazon, maybe very high for you to buy too many shares. Once again you can buy a stock high tack stock fund. You will be owning the companies like Amazon, Facebook, net flex, twitter, Alibaba, just to name a few. Another easy way to invest in technologies is buy (QQQ) you will be the owner of the analyst technology companies.
Fact # 3
You should buy good companies.
Good companies are profitable and growing. So, it would logically follow that they would be the best investments, right? The data shows otherwise.
INSTEAD Bad companies be very good investments.
Research indicates that, over very long run, shares of the top-performance, fast-grow companies can end up under performing the stocks of companies that aren’t growing or even declining. That’s because the shares of growth companies reflect high investors’ expectations; the shares of low growth “value” companies reflect expectations. It’s much easier value companies to exceed investors’ low expectations- causes the stocks to do well.
good companies made great performance for year after year performing. better growing rapidly increase their profit. These are the type of companies that you were to consider for investing in good companies. this in long run well turn out to be very good investment for you become they have proven track record and they have performed well after year in other words. solid blue chip well established with the great track record. Having said all that, you must still do your homework and research propely.as history is the witness even some of their companies also can turn out to be bad investment. you will find a complete of great companies goes bankrupt. most important part is and again is to watch recent progress closely.
Fact # 4
LARGE BLUE-CHIP, DIVIDEND PAYING STOCKS ARE SFAE.
It’s hard to imagine a more cure bet than buying blue chip. They’re big, and they’re well established. They dominate the markets they have a record of strong financial performance and they are secure enough to be able to pay their shareholders in dividends that grow on regular basis what could possibly go wrong? Well, consider that in 1982, 2 of the most valuable companies in the country paying high dividends, We general motors and Eastman k dak. Today the shares of the original companies are worthless 2005. General electric was the world’s most valuable company. It later cut its juicy dividends, and its stock is down 48% in the past year alone.
INSTEAD if you own stocks, own a broad sampling of the entire market.
When it comes to owning individual stocks the mighty can fall and take your dividends along with them. Don’t put your nest egg in one basket or even a few instead invest in dozen, hundreds or even thousands of stocks at once by purchasing shares in mutual funds or exchange traded funds. That approach will give you stakes not only in today’s blue chips but also in lesser known companies that who knows might replace them as blue chips of tomorrow.
As you see in the sub headline, large, blue chip dividend paying stocks are safe. The majority of the time it is true because these are the companies that have performed well year after year, not only paying dividends but actually most cases increasing dividends year after year. They have had great performance and majority of the time most of the companies prove to be the best ones to invest in. However sometimes we will find that small minority from these companies does not perform as well. That is why it is extremely important for you to monitor their growth, progress at the pace they are moving, and the percentage of the business share, they hold in their category are they increasing or decreasing.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
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