In the stock market, the best stock investment strategies are usually the ones that have been proven reliable over a period of time and the longer the better. Sadly, in the investment industry, there are numerous vendors that recommend investment strategies based on everything from planetary alignment to harmonic price patterns making the decision on which approach to use incredibly difficult not to mention frustrating for many investors. Combine that with countless TV shows, newsletters, and "professional" advice, it can be next to impossible to find a strategy to help you achieve your investment goals. Fortunately, there are a few key investment approaches that have withstood the test of time and most of the great investors throughout history have used on of these approaches to some degree or another and, now, so can you.Decades ago, Benjamin Graham, wrote his book, "Security Analysis", based on his experience with seeking out companies that were considered bargain stocks based on his analysis of a company`s intrinsic value which later became known as value investing. Value investing is predicated on finding companies that have a strong competitive advantage within their marketplace and a greater asset value than their current capitalization of their company. By taking total account of the outstanding shares of a company and then comparing it to the value of their listed assets minus their liabilities, then analyzing their competitive advantage in the market where they compete, Graham could find companies that were undervalued and promised a good return when taking into account their future prospects. Graham not only succeeded in becoming an outstanding investor but he taught the method to a new generation of investors including Warren Buffett and Marty Whitman. Both Buffett and Whitman went on to manage billions of dollars of investment capital while achieving outsized returns far outpacing the stock market average using Graham`s approach, value investing. The success of Graham and his students - Buffett and Whitman - have gone on to inspire countless mutual fund managers and Wall Street professionals to follow value investing having proven itself one of the best investment strategies.Growth investment strategies is based on finding stocks that are offering a new product or service coupled with a competitive advantage in companies that are considered up-and-coming leaders in the stock market. These stocks quickly rise from start-ups with a small capitalization to growing rapidly which is reflected in their strong revenue growth, rising sales growth, and increasing quarter over quarter earnings. Examples of strong growth stocks in their day and age are companies like Home Depot, Walmart, Dell Computer, and Starbucks who started small while perfecting their business models and then once they established their footprint in their marketplace, took off like gangbusters with spectacular growth returning multiples of thousands of percent of return on money invested.
Best Stock Investment Strategies
In the stock market, the best stock investment strategies are usually the ones that have been proven reliable over a period of time and the longer the better. Sadly, in the investment industry, there are numerous vendors that recommend investment strategies based on everything from planetary alignment to harmonic price patterns making the decision on which approach to use incredibly difficult not to mention frustrating for many investors. Combine that with countless TV shows, newsletters, and "professional" advice, it can be next to impossible to find a strategy to help you achieve your investment goals. Fortunately, there are a few key investment approaches that have withstood the test of time and most of the great investors throughout history have used on of these approaches to some degree or another and, now, so can you.Decades ago, Benjamin Graham, wrote his book, "Security Analysis", based on his experience with seeking out companies that were considered bargain stocks based on his analysis of a company`s intrinsic value which later became known as value investing. Value investing is predicated on finding companies that have a strong competitive advantage within their marketplace and a greater asset value than their current capitalization of their company. By taking total account of the outstanding shares of a company and then comparing it to the value of their listed assets minus their liabilities, then analyzing their competitive advantage in the market where they compete, Graham could find companies that were undervalued and promised a good return when taking into account their future prospects. Graham not only succeeded in becoming an outstanding investor but he taught the method to a new generation of investors including Warren Buffett and Marty Whitman. Both Buffett and Whitman went on to manage billions of dollars of investment capital while achieving outsized returns far outpacing the stock market average using Graham`s approach, value investing. The success of Graham and his students - Buffett and Whitman - have gone on to inspire countless mutual fund managers and Wall Street professionals to follow value investing having proven itself one of the best investment strategies.Growth investment strategies is based on finding stocks that are offering a new product or service coupled with a competitive advantage in companies that are considered up-and-coming leaders in the stock market. These stocks quickly rise from start-ups with a small capitalization to growing rapidly which is reflected in their strong revenue growth, rising sales growth, and increasing quarter over quarter earnings. Examples of strong growth stocks in their day and age are companies like Home Depot, Walmart, Dell Computer, and Starbucks who started small while perfecting their business models and then once they established their footprint in their marketplace, took off like gangbusters with spectacular growth returning multiples of thousands of percent of return on money invested.