Stock Investment 101

 
 
 
 
 
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Value: The classic Warren Buffet strategy seeks to find stocks that are undervalued by the market. Investors who use this strategy seek to find stocks that they believe will earn more than analysts expect or believe the firm has assets that are currently underappreciated by the market.

Growth: Investors looking to find the next Microsoft generally focus on stocks with a high potential for growth. In a similar fashion to the value strategy, these investors seek to find stocks that they believe will grow faster than the market expects.

Technical Analysis: Some people use charts to predict a stock's movement. These traders are known as 'chartists' and this method of trading is known as technical analysis. Technical analysis tends to be used for short-term trades instead of long-term investments.

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06/04/2009

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