GAFM GLOBAL ACADEMY OF FINANCE AND MANAGEMENT  ®

7.  Chapter 7 - Portfolio Policy for the Enterprising Investor: The Positive Side

One of the best methods to reduce the risks of investing is to diversify your investments. Thus, invest in and buy an allocation of different types of stocks, bonds, or mutual funds, and your overall holdings will not be wiped out if one investment collapses. Three ideas are: 1) Investment in big unpopular stocks, 2) undervalued companies, and 3) “unique situations” are opportunities for value investors. Value investing is not concerned with timing the market but seeing a stock as an asset with good or potential value.  To achieve better than average results over the long-term, it is necessary to think rationally and not be reactive but rather responsive. 

8.  Chapter 8 - The Investor and Market Fluctuations

Quantitative methods can be used to help investors in determining what constitutes a “reasonable price”, but this there is no exact process. Investors should be comfortable waiting for such stock prices to present themselves.

9.  Chapter 9 - Investing in Investment Funds

There are a wide number of investment funds, each with unique pros and cons. ETF and Mutual Funds differ with respect to their goals, strategies, tax issues, trade-ability, fees, and in other respects. Methods for assessing the value of a given fund will differ depending on the nature of the fund in question. 

10.  Chapter 10 - The Investor and His Advisers