by Stacy Francis, CFP®, CDFA
Even in a market like today’s, many people are making nice returns from their investments. Though the masses are mainly nervous, the latest issue of one of the newsletters I subscribe to featured interviews with six self-made investment millionaires. While their choices varied widely in terms of securities and industries, they had three important techniques in common – three techniques you, too, can use to strengthen your investment portfolio.
Think international. With the US markets anything but rosy, it is tempting to give up and simply dump your money in a bank account. But if you widen your horizons, you will find that not all countries are headed into a recession. At least not right now.
Think creative. Don’t dump all your capital into the financial version of Top 40 music. Instead, keep your ears and eyes open and for new ideas – or new twists to old ideas – that you believe in.
Invest in what you know. Do you have a Ph. D. in molecular biology? That gives you an edge over most people if you choose to invest in for instance biotech. Perhaps you have strong reasons to believe that a certain product under development is going to work. Whatever your field is, knowledge is money and when you know more than the masses, you have better chances than they do to make money. Of course, you always have the option to hire an expert who can help you gain this advantage. What is it they say? In love and money, everything’s fair?