My family, friends, clients and those reading my articles in Wealth Heights know my conviction that building wealth requires continuous financial education and courage to take actions. This is exactly what helped me building my wealth and supporting my friends, family and clients to do the same. Most of the successful investors like Warren Buffett, Peter Lynch and others built their wealth in many years of continuous learning and hard work. Warren Buffett reads 6 hours every day and when asked about his best ever investment, he answered “Investment in my self”.
While my stocks portfolio is up more than 25% this year, beating the S&P 500 by almost 10%, I’m focused more than ever on learning new strategies from the market experts to keep this good performance and to reduce the downside risk.
In this article, I will share with you few tips that I followed that helped me achieve this result:
1- Diversification: My Portfolio contains Stocks , Bonds , Gold , ETFs representing many markets like USA , UK , Switzerland and many Emerging markets. It also has large , medium and small companies from several industries such as Technology , Utilities , Financial , Private equity , Tourism , healthcare ,…etc.
2- Invest in high quality stocks and ETFs: As Warren Buffett mentioned “ It is better to buy a great company at a fair price than buying a fair company at a great price”. In order to know how to pick great companies, please subscribe to wealthheights.com to receive my FREE report “4 STEPS THAT DOUBLED MY MONEY”
3- Control your emotions: Make sure you buy when stocks and ETFs are on sale – You need to be greedy when everyone is fearful and fearful when everyone is greedy. Never sell in panic. People who sold in panic in 2008 lost 37% of their money and if they kept it they would have recovered it all and more in the next few years.
4- Consistent investment every month: This will allow you to purchase more when stocks are down and less when stocks are up. It will also help you to control your emotion.
5- Use low cost stock broker: I used many stockbrokers in the last twenty years, across multiple countries, and I can easily say that Interactive Brokers is THE BEST. It has global access to 100 markets in 26 countries and in 22 currencies. It offers one of the lowest execution fees with free education and research reports. IB trading platform is very user friendly and efficiently works on Laptops, iPads or mobiles with top security. To use IB services , please click here
6- Low cost money transfer company: For over a decade , I used OFX to transfer money across many countries primarily for my properties and stocks investments. I saved thousands vs. using my banks. OFX offers a better alternative to banks by helping their clients lower the costs of international payments. They provide tailored solutions that deliver better exchange rates and manage the risk of volatility in currency markets. The available services are International transfers in over 50 currencies, a secure online platform, personal 24/7 dealing access, zero transaction fees and same day transfers. OFX is publicly listed on the Australian Stock Exchange ASX:OFX with over $100B client transfers to date and approx. 65,000 website visits per day. It has a global presence with offices in London, Sydney, Toronto, San Francisco, Auckland, and Hong Kong. To use OFX services, please register by clicking here