I am willing to take calculated risk when investing in the market.
Remember the stock price is not what the company is worth in some cases. Sometimes investors overprice the shares of companies. I bought me an apparel maker stock.
Over time that company went private after I sold the stock. I make sure I evaluate the financial statements of companies I invest in,especially when I had all my money in this one stock. I also listened to the company quarterly conference calls to get the strategies of management decisions on the company of the stock I am invested in.
I always made sure I had some money on the sidelines when I invest in stocks. You never know when a bargain of a stock will come your way. Other times I had different stocks in different industries. I rebalanced my portfolio whenever some of my stocks get overpriced.
I had seen so many companies have so much cash saved up, millions of dollars. I had bought so many small cap stocks over the years. Management had a sizeable stake in the company when I bought stocks.
People always say it is too risky to have so much money in just one stock.
It is if you don't know what you are doing. Since I am an owner of stock, I thought maybe I should check my stocks daily, not necessary on stock price but on major announcements of the company. I try to pick stocks in industries I am passionate about or understand.
Please Note: Always do your own independent research when investing in the market.
This Is My Formula To Build My Business:
1. Team Building
3. Save My Commissions & Rewardicals
4. Use My Money From My 9-5 Job To Fund My SFI Business