Money management is arguably the most important – yet overlooked – strategy when investing. You see, managing your money efficiently can be the difference between a loss and a gain. Even worse, it could be the difference between a small loss and a total portfolio wipe out.
That’s why, before you even think about making another investment, you must know and follow these money management rules…
One of the most popular ways to check if a share is a buy or sell in the stock market is to take the price of the stock or a pool of stocks, and then divide that by earnings. This is called the price/earnings (PE) ratio. When the PE ratio is above some longer-term average, the stock is considered expensive – and possibly a sell. When it’s below average, it’s considered cheap – and possibly a buy. That’s one of the easiest, and potentially costliest mistakes an investor can make…
Read MoreThese are all different SA companies. Yet they have one thing in common… Not only have they all delisted from the JSE over the past few years, but investors who were luckily enough to own shares in these companies made a tidy profit from their delisting. My point is, buyouts and later delistings can often provide BIG profit opportunities for savvy investors!
Read MoreInvestors spend hours analysing stocks before they buy. There are hundreds of strategies to follow, and many books on value, growth and income investing strategies on what to buy and when. But what investors easily forget is knowing when to sell a stock is just as important.
Read MoreIf there’s one type of company that’s cheap, and heavily discounted right now – it’s investment holdings companies. For example, Hosken Consolidated Investments (HCI) trades at a 23% discount to its REAL value. Then there’s Sabcap – its share price trades at a 28% discount to its REAL value. And the list goes on…
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