The number one rule in investing is never buy what you do not understand.
If it is a company do you under the risk? Do you know how they make their money? Do you know how much debt they have? If they pay dividends, do you know if they can afford their dividends? Do you know if the current stock price is reasonable?
If an ETF, do you understand the products this ETF holds? Do you know what fees you will be paying? Do you know how they will make or lose money?
If a Mutual Fund, do you understand what products this Mutual Fund holds. Do you know what fees you will be paying? Do you know how they will make or lose money?
On my other blog I wrote yesterday about Bird Construction Inc (TSX-BDT, OTC-BIRDF) ... learn more. Next, I will write about Element Fleet Management Corp (TSX-EFN, OTC-ELEEF) ... learn more on Wednesday, December 30, 2020 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.