New to investing? Three choices you need to make

first_img Michael Taylor | Tuesday, 11th February, 2020 Enter Your Email Address Getting started in investing can be daunting, but it doesn’t have to be. Investing isn’t a points-scoring game like football or tennis — instead we win by not making mistakes. Think about a commercial pilot — he or she doesn’t score extra points for arriving at the intended destination faster. Pilots are paid to go through their checklists, not make any mistakes, and deliver the passengers and crew inside the aircraft to the destination safely. There are plenty of mistakes that are made by investors when new to the game, however you will be able to minimise these if you understand the three choices below. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Be patientThe longer the better. Being patient has long been considered a big factor in success in investing, because as Benjamin Graham said — “in the short term the stock market is a voting machine, but in the long term it’s a weighting machine”. But thinking long term does not mean we can be hugely speculative. The majority of speculative shares are speculative for one reason: they do not make any money and may never do so. Being patient does not mean waiting forever for a loser to become a winner! It is worth having exposure to some speculative stocks, as the longer the time frame used, the longer we have to make it back. But we should not go overboard here. Historically, winning shares on the stock market have tended to have strong cash flows and consistent growth in earnings and profits.Decide what type of investor you areInvesting can come in all shapes and sizes. Some people invest for income, so their focus is on dividends and established and stable business models, whereas some people invest for growth, so topline revenue growth for them is more important. Others prefer value investing, whereby they invest in stocks that have a margin of safety — its assets are worth more than the price of the stock. There are many ways to make money investing in the stock market and there is no right or wrong way. It is up to you to decide which field feels best for you and what you are most comfortable with doing. If you know you prefer a margin of safety, then investing in high-flying growth stocks that are carried on momentum rather than value won’t be for you.You need to decide your risk factor Investing in stocks comes with all sorts of risk: currency risk, political risk, country risk, earnings risk, to name just a few. You need to think about the risks that you are comfortable with taking and how they can affect you.For example, just because you are a value investor does not mean that you should invest in an undervalued gold mine in Siberia. It may have a margin of safety, but there is also a lot more risk than if the gold mine was located in a country with a friendly and stable mining environment. Making these three decisions should help you get started in investing.  I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images. New to investing? Three choices you need to make Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Views expressed in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997” See all posts by Michael Taylorlast_img read more

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The FTSE 100 has fallen 15%! I’d buy these 2 bargain shares in an ISA today

first_img Since the start of the year, the FTSE 100 has fallen by almost 15%. The threat posed by coronavirus on the world economy has weighed on investor sentiment, and could continue to do so in the short run.As such, this could be an opportune moment to buy undervalued FTSE 100 shares for the long term. They appear to offer wide margins of safety in many cases, which could translate into capital growth.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…With that in mind, here are two large-cap shares which could be worth buying today. Their dividend prospects may add further appeal to their recovery potential.British American TobaccoThe recent results from British American Tobacco (LSE: BATS) show it’s making progress in delivering its strategy. For example, it’s been able to improve its balance sheet through debt reduction, while increasing its sales of reduced-risk products, such as e-cigarettes. This could help to improve its long-term performance, and may convince sceptical investors it’s moving in the right direction.Of course, the tobacco industry faces an uncertain future. Regulatory change in the US, for example, could lead to a lower sales growth rate for next-generation products. As such, British American Tobacco trades on a price-to-earnings (P/E) ratio of just 9 and has a dividend yield of 7.3%. These figures suggest investors have priced in the potential difficulties which may be ahead for the business, and there may be scope for a stock price recovery over the coming year.With the FTSE 100 having experienced a significant decline of late, British American Tobacco’s defensive characteristics could make it a more popular share among investors. As such, now could be the right time to buy a slice of it.VodafoneAnother FTSE 100 share which has experienced a challenging period over the past few years is Vodafone (LSE: VOD). Its financial performance has been disappointing, and has led to a reduction in its dividend.Despite this, the stock still yields 5.5%. Moreover, it’s expected to produce double-digit earnings growth over the next three years. This may enable it to pay a fast-rising dividend which leads to an increasing appeal for income-seeking investors. In addition, the stock has a forward P/E ratio of around 13.5. This suggests it offers good value for money compared to its historic valuation, and trades with a wide margin of safety included in its stock price.Looking ahead, Vodafone’s simplification strategy may enhance its competitive position and improve its financial performance yet further. Although the prospects for the world economy may be somewhat uncertain at present, the company has a diverse range of operations across a wide geographical spread.Therefore, it may be relatively well-placed to overcome the potential slowdown in the world economy, and could deliver a sound total return in the coming years. Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. The FTSE 100 has fallen 15%! I’d buy these 2 bargain shares in an ISA today “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Peter Stephens owns shares of British American Tobacco and Vodafone. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address Simply click below to discover how you can take advantage of this. Peter Stephens | Monday, 2nd March, 2020 | More on: BATS VOD See all posts by Peter Stephenslast_img read more

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This UK share’s up 64% in 2020! I’d buy it in my ISA and hold it for a decade

first_img Enter Your Email Address UK share markets have continued their northwards march as hopes of a Covid-19 breakthrough rise. The FTSE 100 has just hit its highest levels since early March. The FTSE 250 is doing even better and was recently sitting at nine-and-a-half-month peaks.Is it too early to claim that the global economy has turned the corner, though? I think so. Soaring Covid-19 infection rates suggest that a strong and sustained recovery could remain elusive. Reams of economic data streaming in from North America and Europe suggest that the rebound is likely to be lumpy too.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…I wouldn’t be surprised to see a sharp reversal in UK share prices before long. In my opinion investors need to be prepared for a a long economic hangover following the coronavirus crisis.Riding the gold train with UK sharesHaving exposure to gold remains a great idea, then. And I’d do this by buying UK shares. This often allows investors to ride any rise in the precious metal price while receiving dividends in the process.Concerns over the macroeconomic and geopolitical landscape remain and could give gold prices a big shunt higher again in the coming months. Irrespective of this, however, I think gold should remain well bought as ultra-loose monetary policy fans inflationary fears during this new decade and pushes interest in so-called hard currencies like gold.News yesterday that just 245,000 new jobs were created in the US in November has raised gold’s appeal even more. It’s fanned fears that the world’s largest economy is faltering again (610,000 jobs were made back in October). And it’s raised the possibility that the US Federal Reserve might come to the rescue again with more quantitative easing, raising existing inflationary concerns still further.The gold standard?I’d consider buying Scotgold Resources (LSE: SGZ) shares to ride the solid gold price outlook. But I’d also buy this UK share as production at its high-grade and low-cost Cononish mine in Scotland begins. The business will produce 9,910 ounces of gold in 2021 under phase 1 conditions, a figure that will blast to 23,500 when phase 2 begins in May 2022.The mining sector is fraught with risks for investors. The spectre of project delays, disappointing payloads, and unexpected costs is part and parcel of buying UK shares like Scotgold. But on the plus side this particular digger has the financing in place to get phase 2 off the ground. And it also ha option agreements to explore 3,000 square kilometres of the Grampian Terrane in central Scotland. This area is thought to contain significant gold deposits.Scotgold’s share price has rocketed 64% in 2020 on the rampant gold price and a series of bright exploration and project development updates. And I think it could continue to soar in the years ahead. This is one UK share I’d happily buy for my Stocks and Shares ISA today and hold for years. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Royston Wild | Sunday, 6th December, 2020 | More on: SGZ Image source: Getty Images This UK share’s up 64% in 2020! I’d buy it in my ISA and hold it for a decade I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Royston Wildlast_img read more

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Cathie Wood-style growth stocks are making a comeback. Here are two I’d buy now

first_imgCathie Wood-style growth stocks are making a comeback. Here are two I’d buy now Edward Sheldon, CFA | Friday, 28th May, 2021 | More on: PINS SHOP Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images See all posts by Edward Sheldon, CFA Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img Our 6 ‘Best Buys Now’ Shares Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Edward Sheldon owns shares in Shopify, Amazon, and Pinterest. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon, Facebook, Pinterest, and Shopify and recommends the following options: short January 2023 $1160 calls on Shopify, long January 2022 $1920 calls on Amazon, long January 2023 $1140 calls on Shopify, and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997” Investors in high-growth, ‘Cathie Wood-style’ stocks have had a tough few months. Since bond yields started rising in mid-February, many of these stocks have fallen 30%+.Recently, however, there have been signs of a comeback. Since their May lows, stocks such as Twilio, DraftKings, and Roku have all bounced around 20%.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…This could be a ‘dead-cat-bounce’, of course. In this inflationary environment, there could be further falls to come for high-growth stocks. Nevertheless, I think it’s worth having a nibble at some of these kinds of stocks right now (with a long-term view). With that in mind, here’s a look at two Cathie Wood-owned, high-growth stocks I’d buy for my own portfolio today.A top Cathie Wood growth stockOne Cathie Wood growth stock I continue to like from a long-term investment point of view is Shopify (NYSE: SHOP). It’s a Canadian technology company that offers an e-commerce platform. Through this platform, retailers can launch an online store effortlessly.Shopify has grown at an incredible pace in recent years and the company’s first-quarter 2021 results, posted on 28 April, showed more impressive growth. For the period, total revenue came in at $988.6m, up 110% year-on-year, while gross merchandise volume was $37.3bn, an increase of $19.9bn, or 114%. Operating income for the quarter was $118.9m, or 12% of revenue, versus a loss of $73.2m in Q1 2020.Looking ahead, I expect Shopify to keep growing at an impressive pace, driven by the growth of the e-commerce industry. This year, Wall Street analysts have pencilled in top-line growth of around 50%.It’s worth noting that Shopify is an expensive stock. Currently, its price-to-earnings (P/E) ratio is over 300. This adds risk to the investment case.However, we have seen in recent years that not buying a stock because it has a high P/E ratio can backfire. Amazon has consistently had a high P/E over the last five years and in this time, its share price has risen about 350%. So, I’m willing to have a small nibble at Shopify stock at current levels.Analysts like this stockA second Cathie Wood-owned growth stock I’d buy right now is Pinterest (NASDAQ: PINS). It’s a social media company that offers a ‘visual discovery’ engine.This is another company that is generating very impressive growth. Its first-quarter 2021 results, for example, showed revenue growth of 78% year-on-year. Meanwhile, global monthly active users (MAUs) rose 30% to 478m. Looking ahead, Pinterest said it expects revenue growth of around 105% for the second quarter of 2021.Pinterest is now ramping up the monetisation of its platform. In the first quarter, it achieved average revenue per user (ARPU) of $1.04 globally. There appears to be plenty of room for growth here, however. Rival Facebook currently has an ARPU of around $10.Pinterest stock is also quite expensive. Currently, PINS sports a forward-looking P/E ratio of about 70. If growth stalls, the stock could take a hit.I think the long-term growth story here is attractive, however. It’s worth noting that the average analyst price target is $85 – about 33% above the current share price.last_img read more

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What’s happening to the Biogen share price?

first_img Zaven Boyrazian does not own shares in Biogen. The Motley Fool UK has recommended Biogen. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address The surging Biogen share priceEarlier this month, the FDA approved Biogen’s new Alzheimer’s drug called Aducanumab. This is actually the first medicine that targets the neurodegenerative disease to receive approval in nearly 20 years.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…There are already several products on the market that help reduce the symptoms of the disease. However, trial data from Aducanumab showed that it successfully breaks down clumps of amyloid plaques in the brain. These are what scientists believe cause the illness. In other words, it appears to be able to substantially slow down the progress of the disease — the first drug ever to do so.Given that an estimated 5.5 million people in the US suffer from Alzheimer’s, this represents an enormous potential market for Biogen with little competition to fend off. The treatment is expected to cost $56,000 per year. So it opens up a possible $300bn annual opportunity for the firm in the US alone. Therefore, I’m not surprised to see the Biogen share price rise by double-digits on the news.Taking a closer look at the fine printAs promising as this progress is, there remains a long road ahead for this business. It is worth being aware that the FDA approval was provided as part of the accelerated pathway. This pathway is reserved for rare cases where there are very few alternative treatments available. It enables companies like Biogen to get their unique treatments on the market faster while trials are still ongoing.Moving forward, Biogen will need to begin new monitored confirmatory trials to conclusively determine whether Aducanumab works as well as believed. While the company can market and sell the drug in the meantime, this trial process will be long and expensive. What’s more, should it fail to achieve the desired results, Aducanumab may promptly have its approval status revoked.The Biogen share price has been significantly elevated due to investor expectations of income from this new treatment. Therefore, should any signs of trouble start to emerge, I think it’s likely to mean a significant level of volatility in the stock.Time to buy?Several city analysts have labelled this latest achievement by Biogen as “game-changing”. And I’d have to agree. There remains a long road ahead to receiving full approval. But the company seems to have all the resources it needs to see the next set of trials to the end. And so, while the risks are high, I would consider adding Biogen to my portfolio even after the recent jump in its share price. But its not the only growth stock I’ve got my eye on. Did you know: Following the approval of its latest drug, the share price of Biogen (NASDAQ:BIIB) has exploded this month. Seeing the stock of a biotech company surge after receiving the green light from regulators is quite common. But in the case of Biogen, the US pharmaceutical group has achieved a milestone that many of its peers have failed, despite investing billions of dollars. Let’s take a closer look at what just happened and whether this is a business that belongs in my portfolio. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img What’s happening to the Biogen share price? See all posts by Zaven Boyrazian Image source: Getty Images Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. Zaven Boyrazian | Monday, 14th June, 2021 | More on: BIIB last_img read more

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