What Should I Invest In To Make Money?
If you were to ask me this question. What Should I Invest In To Make Money?, I'd say that the main answer is to invest in small-capitalization stocks.
As a matter of fact, I'd say the reason for this is because these stocks have more room for growth than other stocks do.
With larger companies, the company just “gets old.” A company like Coca Cola is not going to change just because you buy the stock and put your money into it.
However, with capitalization stocks, there's room for growth. In fact, I'd say that the biggest benefit of buying capitalization stocks is that you can buy more shares.
When you buy stock in a company like Procter & Gamble (PG), for example, you're only getting 10 shares out of that company.
You're only getting $10,000 of P&G for your money. By contrast, you can buy 100 shares of Procter & Gamble and get $10,000 of total profit.
Buying Capitalization Stocks
Because of this, I personally feel that buying capitalization stocks have more room for growth. Therefore, in theory, buying smaller companies may have a higher potential for doubling your money. However, this isn't a guarantee.
There are several reasons that I believe this:
Dividend – What Should I Invest In To Make Money
1. The dividends in capitalization stocks do not pay a dividend. As such, it is not like regular dividends that come out of thin air. For example, Walmart, currently the world's largest retailer, actually pays no dividends at all, but uses the dividend as a growth incentive.
Most stocks pay a dividend, but the dividends are usually paid out of the profit after tax and minus certain thresholds.
2. The stock prices at $50,000. This is the stock market high of the year so far. This stock has been up for the year for the most part, so far.
3. The current EPS is $2.00, which is slightly above the expected EPS of $1.96 for the year.
So this stock has been at an outstanding level for the year, and for the year EPS may be slightly above average. The EPS is one of the most important ratios in stocks, if they are not up for the year the market will sell off and look elsewhere for good stocks.
4. The PEG is 0.87, which is the expected P/E ratio for the year, as such the stock is at a sell level, but the stock is at a slightly above-average level. It has been at an outstanding level for the year so far and has been slightly above average for the year.
What Should I Invest In To Make Money, This is a great opportunity to buy these stocks, and the fact that they are paying a dividend makes it even better because the dividend is at a great level and at a slightly above average level for the year, so it is a perfect opportunity to make some money if they don't make the expected amount of money.
The fact that they are slightly above average makes it less of a shock if they are slightly below average as it will not affect your portfolio.
I do not suggest buying these stocks until the market confirms they are undervalued, but you can buy them and do nothing while the market confirms that they are undervalued.
The real key to this strategy is the fact that it pays a dividend.
It is a great sign that the dividend is slightly above average, and the fact that they have a dividend also makes it less of a shock if they are slightly below average, since the dividend is a good sign that the stock is a good buy.
The fact that the dividend is slightly above average is not enough to make a stock a great dividend stock, the dividend has to be a great dividend.
The dividend has to be at a great level and the market has to confirm it. The next step is to get the stock when the market confirms that the dividend is great.
Strategy Will Give You a Small Profit
This strategy will give you a small profit, it will only be around 2% for the year, however, these stocks can pay you a lot more than 2%, because they have great dividend yield, the return from the dividend may only be around 2%, but you can make 18% per year.
What Should I Invest In To Make Money, Just getting into dividend stocks is not enough to make you rich. Investing a bit of money and sticking with it will make you a great dividend stock investor.
For me, I prefer to use a combination of this strategy and also angel investing with the VC Crowd, and all the work is done for me, (full review here) and I receive shares every month in my portfolio so not buying only stock in my favorite companies.
Small Capitalization Stocks And The Stock Market
I'll admit it, I was a huge fan of the stock market as a kid. I would buy penny stocks on a whim because I thought that they had more room for growth. I spent hours researching companies I was interested in and studying their financial statements.
However, as I got older and started to have some money of my own, I became less concerned with companies' finances.
Now, I'm not saying that you should stop studying companies and their finances. What I'm saying is that small-capitalization stocks don't have nearly as much information as larger companies. They aren't going to give you as much insight into their plans as a Fortune 500 company would.
If you were to look at a companies balance sheet, you might think that this was an easy place to make money.
However, you would be very wrong. If you wanted to invest in a company and the balance sheet was very positive, I can see how it's an easy place to make money. However, if you were to look at a balance sheet of a small-capitalization stock, there's a good chance that you'd be very scared.
Now, if you want to do trading in penny stocks, you're probably going to be trading on this information anyway.
So, it makes sense to look at the balance sheet so you know what you're getting into. What I would suggest is that if you're going to do this, make sure you really understand how the company makes money.
What Should I Invest In To Make Money
In conclusion, I would say that I'm a fan of small-capitalization stocks and I think they're a great way to make money in the stock market. However, I can see how people can become very scared when they see a company they want to invest in has a balance sheet that isn't looking so good.
Remember, it's not the company that people are worried about, it's the balance sheet.
So, keep your head up and do your research before you buy your penny stocks. What Should I Invest In To Make Money, On the other hand, if you want to be an angel investor and have all the work done for you while you just sit back and enjoy the ride I would recommend joining VC Crowd.