Managing Financial Investments

Managing Financial
Investments
By www.profitableinvestingtips.com

Profitable investing
does not stop with
picking sound
investments.

http://www.profitableinvestingtips.com/investing-
trading/managing-financial-investments

Getting into a good
investment is one
thing but managing
financial investments
is another.


Managing financial
investments requires
a broad view of the
intent and purpose of
each investment.


Managing financial
investments also
requires continual
attention to each and
every investment in
your portfolio.


While getting into a
good investment may
require a broad
survey of penny stock
to large cap stocks,


managing financial
investments requires
that you follow the
rate of return on
investment of your
penny stocks and all
others.

It requires that you
stay abreast of the
fundamentals and
market sentiment
that made your stock
purchase a good deal
in the first place.

In today’s stock
market, buy and hold
can be a fatal
strategy.


An excellent example
is Microsoft which
gave its original
investors more than a
thousand fold return
on initial investment.


Today the stock pays
a nice dividend but no
longer promises to
grow in multiples of
its current value.


Profitable Asset
Management


The long term goals
of most successful
investors are to
preserve capital and
then to beat the rate
of inflation.


Long term investors
look for value in
stocks, real estate,
offshore investments,


interest bearing
vehicles, and even
tangle assets such as
gold bullion.


Managing financial
investments so as to
preserve capital and
grow a portfolio can
be a constant
balancing act.


As they say, there is
always a bull market
somewhere.


The trick to managing
investments is to pick
the best
opportunities, to not
run around blindly
searching for a pot of
gold,

and to keep track of
how investments are
doing.


Results versus
Process Audits of
Return on
Investment


Much of what one
reads in the stock,
real estate, or other
investing news has to
do with results.


So and so invested in
XYZ Corp. when the
price was low, and
made a lot of money
when the price went
up due to a buyout
offer.

These are great
results but we often
do not hear much
about the process by
which they decided to
buy the stock.


Successful investors
keep track of their
profits and also their
losses.


Managing financial
investments requires that
an investor learn and
constantly revise a process
for scouting out
investments, assessing
investments, and timing
the purchase of
investments.

The same applies to
selling investments.
Our example of
Microsoft comes to
mind.


It was a spectacular
investment for years
and years.


Now it is a good and
secure investment
without much room
for upward
movement.


Not only in
fundamental analysis
of investments
important but so is
the analysis of how
one goes about
analyzing.

This may sound like
going in to a hall of
mirrors but it really
isn’t.


Use results audits to
spot problems or
successes and use
process audits to
improve on either
end.


Whether you are
investing in real
estate offshore,


stocks in a recovering
North American
market,


or still hoarding gold
in the expectation of
a collapse of the
dollar,


you need to study
fundamentals and
keep abreast of
market sentiment in
managing financial
investments.


Managing Financial Investments

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