The basics long-term techniques in investing are made mostly by very notable investors such as Warren Buffet, Benjamin Graham and David Dodd.
The recent and still going recession in the economy has made a lot of people lose big heaps of money in stocks trading and also many investors have been trapped in the poor conditions, that made them lose confidence. Nevertheless, in many situations it may be considered that many companies still exist in the market that can provide an acceptable model at prices to bargain.
Theres another point of view that if the economy tends to improve, the probable income in the investment isnt to be better. In all cases and views, investors have to be very intelligent in order not to trap into some kind of scam or a bubble. One of the best outcomes in that situation is to take into consideration the value investing for a long period of time.
The Strategy for a Long Term Investment
In the text “Securities Analysis” made by David Dodd and Benjamin Graham in 1934 there was presented the theory of value investing. Later there was even a book The Intelligent Investor” published. But, as you probably know the most successful and well-known investors in the whole world is Warren Buffet, who owns Berkshire Hathaway a famous Investment company.
The very first thing to do about value investing is to understand whether the present stock price gives a fair or an expensive bargain. So, the final decision by the value investor should be made basing on the predictions about the future profit of the business, but not about the trend of a stock price.
Will be Value Investment for a Long Term acceptable for me?
In spite of the value investment method success, an individual investor has to decide if its acceptable for him or not. In most cases the answer will be a negative one, because the reason is that its not a scam or a quick way to become wealthy, plus an investor has to spend a lot of time analyzing the situation on he market. But, if a person is really fond of making an important research on the market and looks for relevant income from value investments, its one of the best ways for him to gain good profits from his portfolio.
Value Investing for Newbie Investors The Launch of an Investment Strategy for a Long Term
If an investor decides that value investing is a valid choice, there are basic things to be regulated. First of all, the two manuals have to be studied The Intelligent Investor and Securities Analysis. And, secondly, basic questions on the investments should be asked and answered, as an example what is my goal? and what are the areas where I have to make my inputs into and which of them will make my capital grow for a long time?
In the conclusion, it should be noted that the recent trends in the economy show that the economy wont get rid of using oil, thats why we may consider value investing in that field to be a long term one.
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