Investment strategy

In the investment strategy section, we present articles that will help you become a better investor. Tips are given as well as the do's and dont's on investment. Most of the investment strategies focus on buying stocks, however, we cover the hold and sell strategies.

In the subseries on successful investors the investment strategies of famous investors are reviewed. Learn from them!

Unpredictability and investment strategy

A lot of different investment strategies exist, but all these investment strategies have their roots in two main strategies. These main strategies are based on two extremes: assurance and making the highest possible profit.

People invest to make the highest profit that is possible, but for a large part of the investors, assurance means a lot to them. This assurance involves the preservation of capital and the possibility to earn some extra money above the current interest rates.

Investment strategy: unpicking stocks

There are two main types investment strategies that are being used by most of the investors. These investment strategies are index following and stock picking. An investor chooses one of these strategies and applies them to its investing portfolio. Although there are two strategies, the outcome of each strategy depends not only on the strategy, but also on the choices someone makes.

Leverage

The landscape of investment products consist of products with a large and products a small leverage. Investment products like bonds have a small leverage. Options, however, have a large leverage. Investing in bonds will generally result in a smaller profit or loss than investing in options.

Stock buybacks and issuing of shares

A lot of information can be found about stock buyback programs and the issuing of shares. Most of the times, the impact on the return on investment is mentioned in these articles. Most investors think that the impact on the return on investment of stock buyback programs and issuing of shares are opposite. In this article, I would like to explain that this is not necessary the case. Besides that, I will discuss the different views on the buyback of shares and the issuing of shares by companies.

Successful selling

All investors are looking for the right moment to buy shares. The right time to buy shares is determined by the price of a share and the trend in which the share is moving at the moment. Tools are used to determine the right buying opportunity of a share. Besides that, it takes a lot of time to figure out what the trend is. But what about selling shares and the selling opportunity?

Decision making

Before you buy a product, you go through a decision making process. During this process, personal preferences are weighed and the best choice is being made. At least, that is what everyone thinks their decisions are made. However, often a decision is made in an intuitive way, without weighing all different alternatives. This certainly is the case in the decision making process for investments.