10 Tips To Invest Better in 2008 (And After)
Tip 1: Focus on company's, not on stockprices.
Tip 2: Know your company. Can you explain within 2 minutes what the company does to an eight year old kid? No? Go look for a different company!
Tip 3: Investigate profitability. Does the company have a structural high return on equity and investments?
Tip 4: Look at growth potential. Can the company take advantage of an important trend?
Tip 5: Look at management. Do they handle in the interest of shareholders?
Tip 6: Don't waste time on technical analyses! Do you know a single technical analyst who has made it to the Forbes rich-list? Right...me neither.
Tip 7: Don't pay a lot of attention to hard-to-predict macro-economic factors. Check if your company is the strongest in it's sector. If circumstances worsen, then the weaker company's will suffer badly, but the stronger ones will be able to increase their market share.
Tip 8: Try to make an as accurate as possible estimate of the company's intrinsic value. But remember: It's still only an estimate.
Tip 9: Only buy shares of researched company's at prices way below your estimated intrinsic value. Sell when the stock price catches up to your estimated intrinsic value.
Tip 10: Read the above tips again!
Disclaimer: I am not responsible for any losses of money or the like because of the usage of the above mentioned methods and tips. You hold full responsibility over your own actions.