Clever Girl Finance

CHAPTER 9Simple Investing Strategies

Clever girls know … sometimes simple strategies are the best strategies.

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To invest successfully, you need to have a plan of action in place to help you achieve your desired financial outcomes. Having a strategy essentially means creating a roadmap to achieve success with your investments. This applies to how you structure your investment portfolio, how you set up your objectives, and how you determine your timeline. Having a strategy will also help you determine how you buy investments and when you sell them according to your goals and objectives. On the flipside, not having a strategy can be equated to driving with a blindfold on, and you absolutely don't want to do that. You want to set a clear path ahead of you and then enjoy the ride while you travel to your destination. Even if it gets bumpy at times, you'll know that with a solid plan in place, just like having a car with great safety features, you'll get to your destination just fine.

So, let's talk strategies. There are several different investing strategies out there. An investment strategy could include trying to do things like:

• Buying investments that are undervalued and holding onto them until they increase in value
• Investing in companies that pay out income in the form of dividends and do so consistently over time
• Investing in companies with growth potential based on revenue and profit forecasts
• A combination of the above and/or other strategies

However, ...