Wednesday, 29 August 2012

Different Theories of Investing Your Money - Finance Category

When you are building your wealth, it is important to have a personal philosophy and approach to your money. You should understand the ways that you think about money. Your money is ultimately a reflection of what you value in this lifetime. It is important for you to take some time to write down the ways in which you spend your money and whether this ultimately reflects your values and priorities in life.

You may be surprised to find out that your investment philosophy is surprisingly connected with your values and priorities, or you may find that your investment philosophy is very much apart from your current values and priorities.

Investing for Value

Investors who choose to invest for value will constantly seek out the most undervalued stocks on the market. They will attempt to buy a stock at a low price, and then they will simply sell the stock when its price increases. Investors who adhere to this type of philosophy will typically analyze the data of stocks in order to find out the debt ratio and profitability of companies. They will want to see whether the company has many outstanding debts and is truly valuable.

Stable Investing

Stable investing is also referred to as ?dollar-cost? averaging. In this type of investment method, an investor will typically invest a certain sum of cash into a stock on a monthly basis. The investor will consistently invest in a stock with the hope that the value of the stock steadily climbs throughout the year. This way, the money that the investor puts into the stock will steadily increase throughout the year.

Investment Theories of?Walter Wisniewski Paragon Capital

Walter Wisniewski has some interesting ideas on building wealth. He believes that people should invest when the time is right in their lives. It is important to work with a financial planner when you are looking to invest your hard-earned dollars in quality stocks. Because the stock market is so unpredictable these days, it is essential for a person to consult with a financial planner. A financial planner can greatly assist a person who wants to make the most out of his or her money.

Investing like Warren Buffet

On the other side of the spectrum is the investment habit of Warren Buffet. Warren Buffet tends to invest in stocks that the typical public would likely think he was crazy for investing in. He will typically invest in stocks that are at their all-time low. The reason Buffet chooses these types of investments is because the market tends to dramatically undervalue stocks when they do lose value.

This means that as the stock steadily regains its value, the investor is able to earn significant income. The investor is able to earn more this way than if he or she had invested in a stock at an ordinary price.

These are some of the most popular theories of investing that you can use in your own life to grow your wealth. The key is to pick a philosophy and stick with it when you want to grow your funds.

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Category: Investment

Source: http://www.financecategory.com/different-theories-of-investing-your-money.html

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