At The RaeLipksie Partnership, we have seasoned investment professionals who are always ready to help our clients. This month our team will be sharing their top investment tips with you.
Perhaps you’ve found yourself wondering more about how to get involved in investments over the past year, or maybe you’re a long time investor who’s looking to improve your current portfolio. Either way, The RaeLipskie Partnership has some great tips to help you navigate investing throughout the rest of 2021.
1. Long term investment means for your lifetime.
Don’t purchase stocks with the idea that in the next week you’ll be able to sell for a massive profit. “Long term” is the key when investing and playing the long game will result in a greater reward.
2. Use the DRIP plan (Dividend Reinvestment Plan) for all your stock purchases.
This means that any cash dividends that you earn from a stock investment are reinvested to purchase more stock in that company. DRIPs use a dollar-cost averaging which generally averages out the price at which you purchase a stock, meaning you never buy right at its height or at its low. Usually there are no additional fees involved, and many companies offer a small percentage discount of the current share price through their DRIP. Overall this allows you to grow your investment in a company at a lower price than if you were to continuously go straight to the market from your pocket.
3. When you find an investment advisor whom you trust implicitly – don’t ever let that person go.
Having someone you trust as an investment advisor is crucial. Especially when dealing with something that can be as stress inducing and volatile as finances, it’s important to have a good relationship with the person you’re relying on to help navigate the waters. Investment can be a daunting concept for many and feeling like you’re in good hands is key.
4. Buy low, sell high.
This one is pretty self explanatory. When looking to buy stocks you want to purchase at a low or feasible price for your budget and in turn, sell that stock once it has grown from that initial purchase point to a high value.
5. Buy on mystery, sell on history.
The legalization of the cannabis industry in Ontario was a classic example of this – by the time the actual event happened, it was already well known by investors and fully discounted in the stock prices.
6. Timing the market isn’t as simple as it sounds.
The problem with trying to “time the market” is that the best time to be buying is when it is gut-wrenchingly difficult to do so, and the best time to be selling is when there appears to be no reason to do so because “everything is going great.”
“The Sage of Omaha” himself, Warren Buffet also has a few notable quotes to keep in mind along with these top investment tips:
- “Risk comes from not knowing what you are doing.”
The temptation to believe that success in one area you know well allows you to easily analyze another can be great, but should be treated with caution. This connects to another of his famous quotes…..“Never invest in a business you cannot understand.”
- “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
Time passes and circumstances change, but when initiating a position it’s worth asking the question, “Would I buy this if I couldn’t trade it for the following ten years?”
- “Buy when others are fearful, and sell when others are greedy.”
We hope these top investment tips have helped you further determine how to move forward with your investments. If you still want further guidance, The RaeLipskie Partnership is always here to help! Don’t hesitate to reach out to one of our Portfolio Managers for further guidance.