Newsletter May 8, 2005
InvestorsFriend Inc. Newsletter May 8, 2005
The Only Two Sources Of Money in the Stock Market
All the money that ever has been made or ever will be made “in the stock market” can be divided into just two sources.
- Money made from other investors
- Money made from the profits of serving the customers of businesses that trade in the Stock Market
In many ways the above fact is obvious. Yet it may also be somewhat surprising to many investors who have never really stopped to think about it. In any advent, it is worth considering the implications of the above fact. Click here for the full article.
The Joy of Investing in Familiar Companies
There are a lot of good reasons to invest in familiar companies whose products and services you are familiar with.
Warren Buffett has suggested that investors stick to simple business that they understand. Warren is considered the greatest investor ever, so it makes sense to listen to his advice. It’s easier to understand consumer oriented businesses that we patronize as customers than it is to understand a lot of businesses that we never encounter in our daily lives. Click here for the full article.
The (Complete and Utter) Folly of Ethical Investing
If the purpose of “ethical investing” is to avoid “supporting” unethical and otherwise wicked corporations, then, I am sorry to say, it is (with rare exceptions) a complete and utter waste of time.
In a nutshell, this is because it is customers and not investors who ultimately decide the fate of any corporation. Any company with profitable customers will easily find investors and the fact that a few or even a large number of “ethical investors” avoid a given company, will not usually or materially harm that company. Click here for the full article.
The performance of investorFriend Inc’s stock picks which have beaten the market for five straight years are on track to do so again in 2005. While the TSX market is up 1.6% year to date, our average Buy or Strong Buy is up 7.7% and our Model Portfolio is also up 7.7%. Now may be a particularly good time to subscribe to our stock picks now that the first quarter profit reports are out and many of our reports are updated or will be updated for those reports. Also, while we are not market timers, we will be trying to help investors think defensively as the traditionally weaker Summer market season looms. We are very happy with our continued strong performance. If you think that this type of fundamental analysis could help you make better stock picks, then subscribe now. The cost is only $10 per month and you can quit any time and we even offer a money-back guarantee on the first month’s payment if you are not satisfied with the quality. (Of course we offer no guarantees that any stock we pick will go up, the markets are always risky, particularly in the short term. But of course we do think that solid fundamental analysis does lower the risk)
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