The LML GROUP Hong Kong: Buying Stock in Growing Companies

The LML Group Hong Kong’s take on Buying Stock in Growing Companies. Thank you to Dave M. for this basic lesson.

Investing in growing companies offers the investor varies stages where profit can be realized and taken. When searching the markets for winners in the stock market an investor can enter and leave the investment at various stages. Long term value investing involves finding under-priced stocks with high intrinsic value. Much of the profit from such an investment may be taken after a price jump. For example, when the broader market catches on to the fact that a stock has been under-priced, the stock will be bid up and the short and medium term investors will often take their profit at that point.

The LML Group , Richmond & Associates Inc., HK Investing in Bonds

The LML Group , Richmond & Associates Inc. , HK – Investing in bonds allows investors to construct a portfolio that is well-diversified. The investment in stocks, bonds and cash can lead to a balanced portfolio if each investment is constructed to meet individual investment objectives. Using efforts to be compatible with every investor’s different risk tolerance and investment goals, the different investments contain varying percentages. Many factors need to be taken into consideration such as the interest rate on bonds, price, maturity, tax status etc.

What is Fundamental Analysis? by LML Group Hong Kong's Dave Martin

LML Group Hong Kong's Dave Martin has this to say about fundamental analysis: It is based upon financial statements of a company, a review of its management, and its relative strength in its market sector. In a broader view fundamental analysis looks at the economy, production such as GDP, broad measures of earnings, interest rates, and the national currency versus those of competitors.

Value Investing

Today’s value investing really is a return to the search for intrinsic value in stocks and a margin of safety between intrinsic value and current price. Wise investors are going back to the basics where intrinsic value is considered to be the discounted value of all future distributions. This in turn demands that the company be making money, will likely keep making money, and will routinely pass money on to its shareholders.

Stock Market Myths for Beginners

The stock market can be a scary place for beginners. Some new investors think the stock market is a place to make easy money fast. Nothing could be further from the truth. The stock market for beginners is a place fraught with short-term promises, but in reality making money in the stock market takes two things: a good sense of money management and sound research.

Investing Using Dividend Paying Stocks

Investment in dividend stocks can provide a steady income stream as well the potential for appreciation of stock value. Well-known companies such as PG or GE have continually increased their dividends year after year for decades. There are companies that have never missed a dividend payment for a century! During a recession investors commonly buy consumer goods companies that pay dividends. The argument against dividend stocks is that they are not growth stocks. That is not necessarily true. Over a five or ten year span the best dividend paying stocks typically outperform the S&P 500 by several percent.

Investing in times of Disasters and Shortages

A sad fact brought up by disasters such as the BP oil spill is that investing in shortages can be profitable. The ongoing news story in the Gulf of Mexico is the difficulty that teams of experts had in shutting off the oil spill.

Investing in New Ideas and Technology

Investing in innovation is great idea but the idea can have its problems. A recent article from Connecticut comes to mind as well as President Nixon’s “War on Cancer” almost 40 years ago. Connecticut passed a number of  laws offering incentives to bioscience companies and to local governments with a major university with a bioscience program.

Investing in Gold by The LML Group Richmond & Associates Inc. Hong Kong

There are a number of attractive options for investing in gold and there are pitfalls. Gold stock investing includes mining companies and derivatives. Many gold bugs will say that investing during hard times you can increase your wealth by investing in gold. However, the true gold bug will advise that you buy and hoard gold bullion or rare gold coins. A current scare tactic in the gold coin market is that “the government will come again for your gold.” Roosevelt signing his executive order to prevent gold hoarding is rewritten as the confiscation of gold. Gold peaked in 1980 after a decade of inflation and promptly dropped. Gold bullion has not made it back to 1980 prices adjusted for inflation despite a fourfold increase in value in the last decade.