Investing Strategies

Even though we all have “Free” access to the Stock Market, less than 5% have the right knowledge to fully take advantage of it. Not fair!

For this type of investment it would be much easier if we preferably use the companies that are the components of the S&P 500 index, this indicator has the companies that have been analyzed by the financial institutions and considered to be components of the index.

These companies are also preferred by large investment institutions to invest their customers’ money through mutual funds. All these companies have already been proven to have a positive financial record in the past and possibly in the future.

In the components of the S&P 500 we will find companies to invest and have profits in two ways:

1 – Through the dividends paid by companies for owning their shares.

2 – Through the appreciation in the price of shares in growth companies.

If the company pays dividends it can have the option to reinvest the money that they pay in shares of the same company and thus accumulate unpaid shares of their own money and using the power of Compound Interest we will have great profits. Although the amount of money you receive in dividends is important, you have to pay more attention to the Return on Investment, which is the Yield%

Ejemplos de estas empresas son, IBM, McDonalds, Microsoft, Wal-Mart, etc.

Examples of growth companies are Apple, Google, Amazon, Netflix, Facebook, etc. Where shares have been seen to grow 300%, 400%… 500% and much more in recent years.

Investing strategies also use technical and fundamental analysis. But more importantly, we must take into consideration the large financial institutions and groups of millionaire investors acquiring shares of these companies. If financial institutions and groups of millionaire investors invest millions of dollars, then we can also invest, even if it is less money.