One thing investors love, is stability.
The smartest investors often analyze trends, patterns, and other movements in the market in which they invest, allowing them to either invest or withdraw their investment, thus driving market stocks and value.
Britain just voted to exit the European Union, coining the term, “Brexit”, and it shook markets and investors worldwide.
European bank shares had their worst two day fall on record and the British pound fell to it’s lowest level in 31 years, Reuters reported.
You read that correctly, a political vote actually decreased the value of money worldwide.
What is in store for the United States economy since the Brexit confusion?
Are you secure in your investments, and does your family have a financial plan in case of economical collapse?
Tom Sirois of Berkshire Hills Financial can help you get on the right track.
I have spoken with countless people (professionals and non-professionals) regarding stock they are invested in. Though many may “sound” intelligent describing the minutia as to why a particular company is a good investment. For long term investing, I think Warren Buffett has a great way to describe what HE looks for.
Here are four items he utilizes BEFORE he invests in a company by buying their stock:
- Any Good Investment Idea Can be Put in One Paragraph: most great companies are simple and easy to understand (think Coke or McDonalds)
- Circle of Competence and NO Called Strikes: know what you are good at, and do not pick a company at a bad price. Make your BEST decision always.
- Invest in great businesses that have a terrific person running it: Peter Lynch once said: “buy a business that is so good that any idiot can run it because sooner or later one will”.
- These businesses are hard to find, so do not sell them: Buy at the right price, and you will not need to sell these stocks.
A great video that wraps this all up is found here: Warren Buffett on Investment Analysis