I said on Thursday I was going to research in depth on the 3rd qtr results of CAT and AAPL, however I was unable to accomplish this task. Conference calls are about 1 hour in length and my smart phone wasn’t agreeing with me. Listening to conference calls while in transit to work is the best way to go. So I will work to listen to all 3 calls over the next few days. I rely heavily on homework and will not give any advice until my research is complete.
That being said doing your own research is very important to finding great investments. Investing is hard work, but it pays off when the proper steps are taken to finding that undiscovered company. When investing in stocks the potential for huge profits is during the infancy of a company. Investing before a company is discovered by all of the big institutions is a great way to supercharge your investment portfolio. I like to have a mix of small, medium, and large companies. Large companies offer income and stability. Medium size companies offer growth with minimal income and small companies offer rapid growth (Like Westport Innovations).
Small companies have the potential to make an investor a millionaire with a small investment over time. Now that’s exciting! That is the reason behind diversification. You don’t want to have all of your money tied up in large companies. This may be a more conservative approach by investing in the well known large cap companies, but the potential for significant returns is minimal. Plus in my opinion it’s truly boring! I like change and new companies entering the market is a great recipe to fight boredom.
If investing becomes boring, you’re not as likely to pay attention to your investments. Not paying attention will lose you money. Losing money is not a part of my vocabulary. Yes I lose money just like everyone else, but I minimize my losses with proper research and cut my losses early to move onto better money making opportunities.
The message for today is homework. Everyone had to do homework throughout their school years and in order to get ahead one must continue to do homework for the rest of their lives. Homework prepares one for opportunity. The opportunity to take the money to the bank! LOL!
Also, Schlumberger (SLB) I mentioned on Thursday reported on Friday. They had a solid quarter and the stock closed up 5.38%. Looks like oil service demand is steadily rising. The future for this Industry is heating up for potential profits in the near term.
Lastly, I would like to mention that for the next couple of months I’m going to blog only on Thursdays. This will allow for more time to research and will provide quality posts that can make everyone money.
Happy Sunday!
Clay-
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