The best opportunities are found in rare places—mostly amongst things people won't do, search or dare to give a chance.
Building an investment portfolio isn't easy, if it was that simple a lot of investors would be having a beautiful vacation at the beach every weekend ⛱️.
To effectively build your investment portfolio, you need to invest in business that you understand.
You can make room for the best investment by selling lesser ones and staying clear of the worst investment.
Below are some of the criteria needed to build an effective investment portfolio
•A list of potential investments.
•Estimates of their intrinsic value.
•Understanding how their prices compare with their intrinsic value.
•A clear understanding of the risks involved in each investment, and the effect their inclusion would have on your portfolio that's being created.
To help us understand the kind of investment that is worth including in our portfolio, I listed two of the errors investors make.
The failure to distinguish between good assets and good buys at a favorable price can build or break your investment portfolio.
Be on the lookout for bargains: Bargains are assets that are out of favor. The greater the stigma, the better the bargain.
To succeed while building your investment portfolio, aim to look out for bargains.
I recommend this because a bargain asset is highly unpopular, capital is away from it and no one can think of a reason to own it.
Bargain assets are created either by analytical or psychological errors and these errors create a good entry-level for trained investors.
To be a good investor, you need to have a fifth sense. Evaluate the market before you strike!
If you don't make good decisions, your investments will go down the piles.
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