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Investing in conservative blue chip stocks may not have the allure of a hot high-tech investment, but it can be highly rewarding nonetheless, as good quality stocks have outperformed other investment classes over the long term. Historically, investing in stocks has generated a return, over time, of between 11 and 15 percent annually depending how aggressive you are. Stocks outperform other investments since they incur more risk. Stock investors are at the bottom of the corporate "food chain." First, companies have to pay their employees and suppliers. Then they pay their bondholders. After this come the preferred shareholders. Companies have an obligation to pay all these stakeholders first, and if there is money leftover it is paid to the stockholders through dividends or retained earnings. Sometimes there is a lot of money left over for stockholders, and in other cases there isn't. Thus, investing in stocks is risky because investors never know exactly what they are going to receive for their investment. Casino - All casino related link can be found here Black Jack - All black jack related links can be found here Poker - All poker related links can be found here Online Poker - All online poker related links can be found here Betting - All betting related links can be found here Lottery - All lottery related links can be found here Craps - All craps related links can be found here Slots - All slots related links can be found here Roulette - All roulette related links can be found here Games - All games related links can be found here Recreation - All travel/holiday/resort/airline related links can be found here Health - All online pharmacy/hospital/health related links can be found here Shopping - All online shopping/gift related links can be found here Business - All business/finance/loan/mortgage related links can be found here Computers - All computer hardware/software/peripheral related links can be found here Internet - All webhosting/webdesign/internet marketing related links can be found here Miscellaneous - All other links can be found here not stated above
Selecting a blue chip company is only part of the battle - determining the appropriate price is the other. Theoretically, the value of a stock is the present value of all future cash flows discounted at the appropriate discount rate. However, like most theoretical answers, this doesn't fully explain reality. In reality supply and demand for a stock sets the stock's daily price, and demand for a stock will increase or decrease depending of the outlook for a company. Thus, stock prices are driven by investor expectations for a company, the more favorable the expectations the better the stock price. In short, the stock market is a voting machine and much of the time it is voting based on investors' fear or greed, not on their rational assessments of value. Stock prices can swing widely in the short-term but they eventually converge to their intrinsic value over the long-term. |
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