Five Excellent Investment Characteristics By Keith Tufte | Submitted On September 22, 2014 Recommend Article Article Comments Print Article Share this article on Facebook 1 Share this article on Twitter 1 Share this article on Google+ 1 Share this article on Linkedin 1 Share this article on StumbleUpon 1 Share this article on Delicious 1 Share this article on Digg 1 Share this article on Reddit 1 Share this article on Pinterest 1 Expert Author Keith Tufte We favor investments that are low cost, tax efficient, diversified, liquid, and simple. Many investors often run into trouble when they invest in things that do not have these five characteristics. Investments with these five characteristics have been profitable over time, but typically are not very exciting. There is generally not a "hot story that you need to act on now!" associated with them. The financial services industry generally does not favor these type of investments because they generate very little profit from them. We are in the business of helping to maximize the wealth of our clients, not the financial services industry. Keep in mind that this list of investment characteristics is not comprehensive. Other factors to look for in investments might include attractive valuation, low correlation to your other holdings, a nice dividend yield or interest income, a tilt towards areas of the market that have produced higher returns such as value stocks, an appropriate risk level for you, etc. Low Cost. We
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The nature, volume and frequency of the customer’s transactions in the investment field and the period over which they have been carried out; and
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The book, The Four Pillars of Investing, by Paul Bernstein is great guide to investing and how to build a winning portfolio for inexperienced investors. This book offers great tips and lessons without becoming too technical or advanced. Instead, Bernstein tries to explain and teach readers the fundamental concepts so that they can make their own decisions by applying the concepts they’ve learned. Bernstein believes that success in investing is built upon four pillars: knowledge of investment theory, an understanding of the history, understanding the role psychology plays in investing, and an awareness of the business aspects of investing.
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What type of financial investments would you invest in if you were given 10,000 dollars, what made you choose these investments, as well as; how did your choices affect your decision as to tracking these financial investments through the usage of financial strategies and trends. While finding the right pecuniary investment to finance in is never an easy decision, one must first do their research as to what type of financial resources are available on the market to invest in; then apply those financial decisions and strategies to their financial market plan. Let’s begin with what a financial market does, “financial markets perform a vital function: they transfer funds from savers (individuals and organizations willing to defer using some
Another thing to analyze prior to investing is whether or not an issuer can cover its debt obligations. Keep in mind that bond purchasers are loaning money to the issuer, thus the purchaser should be sure that the issuer plans and is able to make good on coupon payments, as well as the principal once the bond has matured. This can be very complex, and requires monitoring on an around-the-clock basis by professionals. The use of financial metrics can make this task a little easier to forecast.
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