In This Issue:
Managing Risk in Your Investment Club or Individual Portfolio
by Doug Gerlach, ICLUBcentral Inc.
Investing in the stock market is risky business. Although admittedly not in the same category as the "risky business" in which Tom Cruise's character found himself embroiled in the 1980s film of the same name, buying and selling stocks carries a significant level of risk nonetheless.
Investors and clubs use several strategies to keep the risk in their portfolios at a manageable level. Analyzing stocks with tools such as Toolkit 6 to find high-quality, well-managed companies is a great place to begin.
The real key to managing risk in a portfolio of stocks is to spread out the holdings in two ways: by size of company and by sector and industry.
A portfolio that includes stocks from many dissimilar sectors and industry groups helps reduce risk by lessening the impact of problems that might affect a single company or an entire industry. In 2000, clubs that had overloaded on technology stocks were shocked when their portfolios took a tumble during the dot.com crash, while energy companies held their own.
Banks and other financial institutions were knocked for a loop at the start of the current recession and financial crisis, but health care companies were less likely to be affected by the credit meltdown ...
Read more in Doug Gerlach's article on "Investing's a Manageable 'Risky Business'" from the September 2010 issue of BetterInvesting Magazine.
Resolving the Endless Horrors of the Never-Ending Club Meeting
Do your investment club meetings tend to go on, and on, and on, with little to show for them?
Is "Time for Loud Arguing" included on every one of your club meeting's agendas?
Does the consumption of refreshments and social chit-chat make up the longest segment of a typical club meeting?
If so, check out the archives of Tuesday's "Investment Club Orientation" webinar, where Doug Gerlach discussed "Running a Smooth, Tension-Free (and Fun) Investment Club Meeting." You'll find the link in the Webinars listings on the ICLUB.com website.
Don't miss next month's club webinar — register today at https://www2.gotomeeting.com/register/740044755 and attend each webinar live. They're free!
Only 1 Month Left to Get Your Free Copy of Take Stock
We're giving away copies of the newly-updated Take Stock, free with your purchase of Toolkit 6! But there's just one month left to take advantage of this special offer, so don't delay.
Take Stock tells you exactly how a "normal person" like you — regardless of education or experience — can invest successfully. Designed for beginners but beneficial to all fundamental long term investors, Take Stock is an important addition to your investing library.
Toolkit 6 allows you to quickly analyze promising stocks and manage your portfolio. Developed for both novice and experienced investors, Toolkit 6 stock analysis worksheets, and its own unique portfolio management tools that make it easy to monitor fundamental changes in your existing holdings with alerts and color-coded highlights. The program can automatically download and update ten years of historical data and prices from the Internet.
Order today! (Already own Toolkit 6? Then grab your copy of Take Stock for $29.99 plus shipping and handling.)
|
