20 likes | 42 Views
Focusing on some of the crucial factors of investing, a billionaire investor mentioned golden investment tips. He emphasized mainly on factors like future plans, investments, new accounting change, and inability to buy big companies.
E N D
ExpErt’s tips to invEstors ExpErt’s tips to invEstors – – Top 5 Investment Tips Top 5 Investment Tips Focusing on some of the crucial factors of investing, a billionaire investor mentioned golden investment tips. He emphasized mainly on factors like future plans, investments, new accounting change, and inability to buy big companies. Following are top 5 investment lessons written by experts from all shareholders: 5.Importance of “Sensible purchase price”: Experts believe that the search for new stand-alone businesses is a never-ending process. Main and significant qualities that you must seek are durable competitive strengths, able and high-grade management. Apart from these qualities, it is also important to have a quality that gives you good returns on the net tangible assets required to operate the business. At last, it should be available at a sensible purchase price.
4.Berkshire Cash Pile swells to $116 billion: Experts informed that Berkshire cash pile swells to USD 116.0 billion in cash and US Treasury Bills up from USD 86.4 billion at year-end 2016. However, this extraordinary liquidity makes you earn only a small amount of profit. You may be happier if you have redeployed Berkshire’s excess funds into more productive assets. 3. A diversified portfolio of US equities becomes progressively less risky: Analysts also highlighted that in an upcoming day, week or even year, stocks will be riskier. The stocks will be far riskier than the short-term US bonds. The more the investor’s investment horizon lengthens, the less risky is the diversified portfolio of US equities than bonds. However, in this case, it is assumed that the stocks are purchased at a sensible multiple of earnings relative to then-prevailing interest rates. 2. Bonds could also be risky: Earlier, in 2012, long-term bonds were considered as a riskier investment than a long-term investment in common stocks. During that era, it is said that even a 1 percent annual rate of inflation would have decreased the buying -power of the government bond. This is one of the terrible mistakes made by the investors to measure their investment “risk” by their portfolio’s ratio of bonds to stocks. Usually, it is observed that the high-grade bonds in an investment portfolio increase its risk. 1. Performance comes, performance goes. Fees never falter While emphasizing on several factors, experts also talked about the fund-of-fund performance. They also informed that the investors believe that if the businesses of the investees are successful then their investments will be successful as well.