Stock Investing Advice

The Stock Investing Advice section of this website is comprised of links to a collection of pages related to, not surprisingly, investing in the stock market.

This is not a beginner's guide to investing or a tutorial on the nuts and bolts of investing in the stock market. While there may be some HOW to invest elements, much of what you'll find here is focused on the WHY of investing.

And the WHAT.

In fact, I believe that the concept of true investing is so misunderstood and so under appreciated, that much of what these pages (and much of the website, for that matter) is about is rescuing real investing from a chaotic, trading-centric world.

Although trading and investing are frequently used as synonyms, understand this: they are in no way interchangeable.

Am I really advocating investing over trading? I admit that this probably sounds a little strange coming from a website about option trading strategies. But I use options as a strategic investment, as a way to become a better investor, not a riskier trader.

In one way or another, most of the pages linked below here will address the following questions:

  • What is true investing?
  • Why is investing superior to trading?
  • What are the best ways to enhance investing?

Now onto the Stock Investing Advice - click on any of the links below to jump to the full page.

What Is Investing? - So what is investing? If you really want to understand the difference between what I consider true investing and what the mutual fund industry and mass media labels investing, you must recognize the crucial difference between investing for profit and investing for gain.

The Importance of Long Term Investing - See the 4 reasons why a long term investment horizon matters. Here's a profound insight - the longer your time horizon, the easier it is to make a lot of money investing.

Quality Investing - If I could only give one piece of stock investing advice, it would be this: obsessively focus on investing in only the highest quality companies you can identify. If you do that, your only further concern is to make sure you don't overpay on your investments. You want to know how to succeed in the stock market? In a nutshell, that's it.

Value Investing and Options - There's no single or simple definition of value investing, but this page provides a good overview of value investing along with several examples of its different practitioners. It also makes the case for promoting the use of option trading as a synthetic form of value investing.

Investing vs Trading - More stock investing advice: this piece goes into detail about "Why Successful Investing is Easier Than Trading." Both traders and investors attempt to predict the future of something. Find out the differences and why investors have the much easier task.

What Constitutes Safe Investing? - All investing is safe investing. At least that's the intention at the outset. After all, no one invests in order to lose money. But the question arises: Can you be both a risk-averse investor AND a successful investor?

High Return Investments (50% Annual Returns? - Is it possible to generate 50% returns each year? What strategies could produce such returns? And do you even need 50% annual returns in the first place?

Top Investing Mistakes - See the top 4 investing mistakes keeping smart investors poor. Are you making them? I made them myself for years until I discovered a better way.

Bad Investing Advice - When it comes to investing, we are bombarded with bad advice. Are you following bad advice, or are you learning to become a great self-directed investor?

free exclusive value investing with options report


Warren Buffett Zero Cost Basis Portfolio Current Equity Holdings:

KO - 125 shares
KMI - 100 shares
BP - 100 shares
MCD - 30 shares
JNJ - 25 shares
GIS - 25 shares
PAYX - 25 shares

Open Market Purchase Price: $20,071.83

Less Booked Option Income: $16,341.71

Tot. Discount: 81.42%
Adj. Div. Yield: 19.59%