Ken Fisher of Fisher Investments needs no introduction in the investment and financial world. He has been instrumental in the financial success in hundreds of investors. A few weeks ago, Ken wrote an article on Forbes.com and shared his insights about some common and critical dilemmas that investors face on a daily basis and he also suggests solution.
Let us analyze his point of view in more detail for a better understanding. So, here’s what he has to say, suggest –
Dilemma & Solution 1 – First dilemma that Ken points out is how people worry about cash flow in the long run and are confused whether to invest in treasury bonds, junk bonds or lower yielding but high quality corporate bonds.
To this Ken suggests, if you’re looking for long-term investments, then it is best to invest in a more reliable and non-volatile company like the Verizon. He argues that, even if it has a bit of ups and downs, in the long-run, Verizon stock would definitely yield results.
Dilemma & Solution 2 – Whether to invest in neo-America or not, due to rising inflation is another dilemma that most men and women face. He suggests, rather than sticking to only United States, investing money in global market like the well-established Germany helps in the long-run.
Dilemma & Solution 3 – The third dilemma deals with saving something off for your loved ones. To this, Ken compares the powerful Coca Cola with the newbie Facebook and suggests investors to strictly stick to the large powerhouses that give sufficient dividend yield for your loved one.
Dilemma & Solution 4 – When people are intrigued by emerging markets, but are worried about the external threats from terrorists, drug dealers, etc. then Ken is straight away advising people to invest in Ecopetrol, a large petroleum company in the US. He emphasizes on the fact that Ecopetrol increased its estimated earnings by over 13 percent in the last few years.
Dilemma & Solution 5 – Finally, Ken asks people who would like to have a great stock in spite of having a diversified portfolio to purchase Walt Disney Co. as it is slower in growth but well-managed and diverse.
If you analyze the above suggestions carefully, you’ll realize that Ken is basically advising the investors to keep it simple and invest only in powerful stocks that give high yielding after a long time. His asks you to invest in stocks that grow slowly rather than risking the money in alluring but short-term stocks.
This is perhaps what Ken has been suggesting to all his clients across the US. So if you have also had such investment dilemmas, you can consider following the above suggestions.