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MAKE MONEY BY INVESTING By www.ProfitableInvestingTips.com

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By www.ProfitableInvestingTips.com Make Money by Investing Despite the fresh memory of the 2008 stock market crash it still possible to make money by investing in stocks. In order to make money by investing it is necessary to learn to do fundamental analysis of potential investments. In stock investing this involves finding the intrinsic value and margin of safety of a stock. In addition, successful investors learn how to diversify a stock portfolio, how to pick growth stocks, how to pick dividend stocks and how to how to manage risk in investment. Safe Investments versus Profitable Investments To make money by investing it is necessary to consider both what are safe investments and what is a good investment, from the viewpoint of potential profits? The ideal investment fits both criteria. The work of the investor is to find stocks that are underpriced but which hold the promise of good long term yield. The anticipated return on investment of a stock is commonly referred to as its intrinsic value. The factors that guarantee that a company will not go bankrupt during an economic downturn are collectively considered to be a stock’s margin of safety. Safe investments have a good margin of safety. Profitable investments need to have good intrinsic stock value. In both cases the best way to make money by investing is to find these stocks before the market does, buy them at a low price, and wait until the company makes money and the market drives the stock price up. First Steps to Make Money by Investing Investors should set aside money for investing. A good rule of thumb is to have sufficient savings set aside for six months of expenses. This is after you pay off any credit card debt! Anything over a ten percent return per year can be considered a good investment on a safe stock. If you are paying eighteen percent interest on credit card debt you are losing ground. Pay off your credit cards and put aside enough money for a rainy day fund. Then you will put aside a fund with which to make money by investing. Next decide what your goals are. When you make money by investing are you going to save it for retirement, spend it on your children’s education, or take a long trip? Your goal in investing will help you determine your investment timeline. A long term investor can take more risk with his investments, or at least part of them, than someone who needs his investment capital in just a couple of years. Before considering about investing in dividend stocks versus growth stocks, oil stocks versus pharmaceutics, or consumer goods stocks versus biotech put some money aside for a rainy day and decide just what your goals are. Diversification If any of us had a crystal ball we would find the absolutely best stock picks, buy the stocks, forget about them, and watch our money grow. However, not all of today’s good investments will be good in ten years. Good investments during good economic times may turn bad during a recession.

TRANSCRIPT

Page 1: Money by Investing

MAKE MONEY BY

INVESTING

By www.ProfitableInvestingTips.com

Page 2: Money by Investing

Despite the fresh memory of the 2008 stock market crash it still

possible to make money by investing in stocks.

By www.ProfitableInvestingTips.com

Page 3: Money by Investing

In order to make money by investing it is necessary to learn

to do fundamental analysis of potential investments.

By www.ProfitableInvestingTips.com

Page 4: Money by Investing

In stock investing this involves finding the intrinsic value and margin of safety of a stock.

By www.ProfitableInvestingTips.com

Page 5: Money by Investing

In addition, successful investors learn how to diversify a stock portfolio, how to pick growth stocks, how to pick dividend

stocks and how to how to manage risk in investment.

By www.ProfitableInvestingTips.com

Page 6: Money by Investing

Safe Investments versus Profitable

Investments

By www.ProfitableInvestingTips.com

Page 7: Money by Investing

To make money by investing it is necessary to consider both

what are safe investments and what is a good investment, from

the viewpoint of potential profits?

By www.ProfitableInvestingTips.com

Page 8: Money by Investing

The ideal investment fits both criteria.

By www.ProfitableInvestingTips.com

Page 9: Money by Investing

The work of the investor is to find stocks that are underpriced but which hold the promise of good

long term yield.

By www.ProfitableInvestingTips.com

Page 10: Money by Investing

The anticipated return on investment of a stock is

commonly referred to as its intrinsic value.

By www.ProfitableInvestingTips.com

Page 11: Money by Investing

The factors that guarantee that a company will not go bankrupt

during an economic downturn are collectively considered to be a

stock’s margin of safety.

By www.ProfitableInvestingTips.com

Page 12: Money by Investing

Safe investments have a good margin of safety.

By www.ProfitableInvestingTips.com

Page 13: Money by Investing

Profitable investments need to have good intrinsic stock value.

By www.ProfitableInvestingTips.com

Page 14: Money by Investing

In both cases the best way to make money by investing is to

find these stocks before the market does, buy them at a low

price, and wait until the company makes money and the market

drives the stock price up.

By www.ProfitableInvestingTips.com

Page 15: Money by Investing

First Steps to Make Money by

Investing

By www.ProfitableInvestingTips.com

Page 16: Money by Investing

Investors should set aside money for investing.

By www.ProfitableInvestingTips.com

Page 17: Money by Investing

A good rule of thumb is to have sufficient savings set aside for

six months of expenses.

By www.ProfitableInvestingTips.com

Page 18: Money by Investing

This is after you pay off any credit card debt!

By www.ProfitableInvestingTips.com

Page 19: Money by Investing

Anything over a ten percent return per year can be considered

a good investment on a safe stock.!

By www.ProfitableInvestingTips.com

Page 20: Money by Investing

If you are paying eighteen percent interest on credit card debt you

are losing ground.

Pay off your credit cards and put aside enough money for a rainy

day fund.

By www.ProfitableInvestingTips.com

Page 21: Money by Investing

Then you will put aside a fund with which to make money by

investing.

By www.ProfitableInvestingTips.com

Page 22: Money by Investing

Next decide what your goals are.

By www.ProfitableInvestingTips.com

Page 23: Money by Investing

When you make money by investing are you going to save it for retirement, spend it on your children’s education, or take a

long trip?

By www.ProfitableInvestingTips.com

Page 24: Money by Investing

Your goal in investing will help you determine your investment

timeline.

By www.ProfitableInvestingTips.com

Page 25: Money by Investing

A long term investor can take more risk with his investments, or

at least part of them, than someone who needs his

investment capital in just a couple of years.

By www.ProfitableInvestingTips.com

Page 26: Money by Investing

Before considering about investing in dividend stocks

versus growth stocks, oil stocks versus pharmaceutics, or

consumer goods stocks versus biotech put some money aside for a rainy day and decide just what

your goals are.

By www.ProfitableInvestingTips.com

Page 27: Money by Investing

Diversification

By www.ProfitableInvestingTips.com

Page 28: Money by Investing

If any of us had a crystal ball we would find the absolutely best stock picks, buy the stocks,

forget about them, and watch our money grow.

By www.ProfitableInvestingTips.com

Page 29: Money by Investing

However, not all of today’s good investments will be good in ten

years.

By www.ProfitableInvestingTips.com

Page 30: Money by Investing

Good investments during good economic times may turn bad

during a recession.

By www.ProfitableInvestingTips.com

Page 31: Money by Investing

Consumer goods stocks that are “ho hum” investments in good

times can be life savers during a recession.

By www.ProfitableInvestingTips.com

Page 32: Money by Investing

In learning how to invest, a smart investor diversifies his stock portfolio so that he can make

money by investing in good times as well as bad.

By www.ProfitableInvestingTips.com

Page 33: Money by Investing

For more insights and useful information regarding

investments and investing, visit

www.ProfitableInvestingTips.com.