Many investors think that the best strategy to invest in the stock market is by reinvesting dividends, dollar-cost averaging, and low cost diversified index funds. Some other investors think that the best strategy is by purchasing individual stocks, building their portfolio brick to brick.
One of the great investors in our history, Benjamin Graham, suggests 5 investing strategies for value investors that can bring better returns.
Describing Benjamin Graham
In case you have not heard the name before, Benjamin Graham was an author and investor. He is considered as the father of investing since he was one of the only few people who invest in stock with financial analysis.
Furthermore, Graham made successes from it. Consequently, he created the number of principles and standards that many investors still use up to nowadays.
Graham addresses specific situations that every active investor will surely face in deciding the ways to manage his or her portfolio. That situation includes whether he or she should buy low and sell high and others.
In other words, Graham thinks that someone close to business will perform better as an active trader. That trader should buy low and sell high.
5 Investing Strategies
Here are the 5 investing strategies for value investors.
Selective Trading
You have to pick out stocks which will do better than the market in a year or less.
General Trading
Always anticipate or participate in the market moves as a whole, as it is reflected within the familiar ‘averages’.
Buying Cheap and Selling Dear
When the price and sentiment are depressed, you can come to the market. But, only sell the stock when the price and sentiment are raising.
Bargain Purchases
Select those issues which sell below the true value, as to how dependable techniques measure them.
Long-Pull Selection
Pick companies with a good prospect over the years than other companies within the same enterprise.
