The point of investing is to build financial wealth that provides security for yourself and those you love. It also affords you the opportunity to do good in your community. Over the years, successful people like Nicholas Kyriacopoulos learn how to secure investments that are held for the long term and provide the greatest possible gains. If you wonder how that happens, here are some tips that will help.
Know the History
Investors like Nicholas Kyriacopoulos know that researching the track record of any investment opportunity is a sound move. The point is not just to determine if it’s currently earning a hefty return; it’s also about how the opportunity performs in a variety of economic climates.
While you expect some fluctuation, your long-term investments should remain somewhat stable. That is, they may experience slight dips during a recession, but they recover and possibly gain a bit once the economy improves. This type of investment limits losses while positioning you to enjoy gains as things change.
But Don’t Place Too Much Emphasis on the P/E Ratio
The price to earnings ratio is something you should take into consideration. More commonly referred to as the P/E ratio, this ratio is a measurement of the share price as compared to the annual net income earned per share. It is a good indicator of performance, so do determine how the ratio may have changed from year to year.
Even so, don’t allow this one aspect to determine whether you purchase an investment or not. In fact, don’t let any one factor make the decision for you. As successful investors like Nicholas Kyriacopoulos, balance is key to selecting investments to hold for the long term. Do consider the P/E ratio aside other relevant factors, but don’t overemphasize this one indicator. Doing so will help you avoid one of the more common mistakes that novices make.
Don’t Panic When There’s a Short-Term Drop
Even the best performing assets will occasionally experience some sort of drop. For example,
Nicholas Kyriacopoulos could tell you about short periods when real estate holdings went through a slump. He could also tell you a thing or two about gold and other precious metals.
The thing to remember is that there are investments which tend to recover faster than others. Those are among the options you want to consider. It may be stocks, but it could also be futures that demonstrate patterns of performance you can rely upon. Certainly, precious metals and real estate are highly likely to recover and gain in value. Do consider devoting part of your portfolio to these kinds of investments.
It’s easy to want to sink all your available cash into something that seems to be a high performer. While you may do well in the short-term, things could change quickly. What you need is diversification in your portfolio. A successful investor like Nicholas Kyriacopouloss can sum the reason up for you with a few words.
Diversification protects you from experiencing significant losses that cripple the portfolio. If your holdings are varied, some of them will be growing while a few are going through a temporary slump. The best-case scenario would mean the portfolio’s overall value remains intact and maybe increases slightly. It also means you’re in a better position to ride out the slump and enjoy significant gains once those holdings recover.
Keep Your Eye on the Goal While Being Open to Tweaking Your Strategy
You have specific goals for your investments. That’s great; keep them in mind as you manage your portfolio. Even so, don’t hesitate to make some changes when something new is on the horizon. Doing so may allow you to remain true to your goals while refining the strategy for achieving them.
People like Nicholas Kyriacopoulos can point to success stories from the last few decades. Those who early on saw the potential of tech development in the form of Microsoft and Apple are doing quite well these days. That includes those who got in early, rode it out when each company went through slumps, and knew how to maintain a reasonable balance in their portfolios. You may find that investing in some type of emerging alternative energy could do the same for you. It never hurts to research those emerging investment opportunities.
If you want to be a successful investor like Nicholas Kyriacopoulos and create a solid base for your portfolio, consider what sort of long-term investments to make. A couple of decades now, you’ll appreciate the hours of research and careful selection that you put into the process.