Choosing Safe Stocks
Monday, July 17th, 2006
Tonight while browsing for new information for our blog, I ran across a site with some great information on investing in safe stocks. You see, many people think too much when it comes to investing. There are a lot of safe stocks that you can invest in and get a good return on investment.
The site is called Investingator.com and here is an excerpt from the article.
… One of the rules Buffett sets before he buys a stock is “increasing market value”. This rule requires that for every dollar per share a company has reinvested in itself, the share price should have increased by at least one dollar too.
Buffett, therefore, does require “market verification” of his stock-picks. Buffett is insisting that, long-term, the trend of a stock’s price should be upwards. In fact, we would say Buffett’s increasing market value rule is a long-term proxy for trend-following…
The article goes on to discuss that when buying or selling stocks, you should look for trends in stocks and not buy on feelings or hot news. By watching stocks over time you can spot stocks that are trending downwards and avoid them while focusing on stocks that are trending upwards and producing a positive return.
They go on to state how companies that have a successful product or service, often maintain their advantage for several years. During this time the stocks price rises and continues to rise.
If you want more information on stock investing check out Investingator.com.
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