Portfolio Approaches
It is my sincere hope that the latest decline in your soon to be printed brokerage statement, will make you reconsider or rethink what you are doing with your hard-earned money. To increase your wealth in the markets, your perspective should be to make a decent gain versus what you risk! You want to repeat that process over and over as many times as humanly possible. Making money is not about achieving the "high price." Making money is not about owning household or familiar companies. When you begin to re-think your investments just like any other business, I believe the light bulb will go off and great things can happen for your net wealth. Your portfolio should be treated like any other kind of business - a grocery store or a car dealership, for example. You are simply taking on inventory into your account at one price and you expect to sell to someone else at a higher price. The difference is YOUR profit margin. High turnover should correspond to lower profit margins and low turnover should correspond to high profit margins. Either approach works well.