Friends, Business Associates, and Others
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)
There are literally hundreds of newsletters available on every topic of finance imaginable. The quality of these advisory services varies greatly, so if you choose to use newsletters as a source of information, proceed with caution. Fundamental stock recommendations should be backed up by some solid evidence that the letter writer has done his homework. Look at his report as you would that of a brokerage analyst. If the letter looks more like a tout sheet for the race track, you will have to conduct a more detailed analysis on your own any ideas that appear to be of interest.
The cost of newsletter varies. Some can run into hundreds of dollars per year. An inexpensive way to sample several at a time is through a company called Select Information Exchange. You can receive trail subscription’s or samples of 20 newsletters, letters with a history of success will more than likely be able to show you a good track record as part of their effort to convert you into a long-term subscriber. There are some good news letter, but be careful which guru you hook up with should you use this approach. (Select Information Exchange, this day and age you can easily search on net.
In your search for winning growth stocks you should always be open to potentially rewarding new ideas. These ideas can often come when you least accept it. An associate informs me that he was putting in the air conditioning on ASTs new manufacturing facility. He reasoned correctly hat AST’s business must be expanding. AST wound up the topstock among those that began the year over $5) in the United States in 1990 with a gain of 259%. By now you probably get the point: your sources of information should include not the services mentioned previously but also the people you come in contact with on a daily basis. Friends, spouse, co-workers, business associates, in short anyone could be the originator of worthwhile idea.
At this point you should recognize the distinction between these sources and taking stock tips. You’ve probably heard of someone who has done well on a stock tip. What you might not know is all of the time they’ve will been burned by these suggestions. Perhaps you’ve lost money on some sure-fire stock that you brought only on a rumor. In sharp contrast, look at the potential sources mentioned in this book as the starting point for your investigation. If a friend likes the service he got at an auto supply store, it’s possibly worth checking further. The idea is the starting point. It may lead you to a big winner. Just make sure that you follow through with the test covered in earlier chapters. Should the idea pan out, fine. If not, move on to the next one.
(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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