Predicatability of Stock Returns and Dividends Coursework

Predicatability of Stock Returns and Dividends - Coursework compositors caseIt requires time, patience and systematic work. Over a period of time, most investors become reasonably healthy, while rough of them even succeed in becoming enormously rich. Quite often, in fact usually, they end up making more money than most speculators and gamblers. J. Paul Getty was -one such outstanding example. He became the worlds richest man and accrued a vast fortune of over U.S. $ 2 billion but it took him over fifty eld of consistent and steady investing to do so. It would be useful for you to ponder over what he saysDont misconceive me. It is possible to cast money and a great deal of money-in. the stock market. But it cant be make overnight or by haphazard buying and selling. The big profits go to the intelligent, careful and uncomplaining investor, not to the reckless and overeager speculator. (Navjot57)In the stock market, the heart of the coronation process consists of selection, mea sure, and price. It is all a question of selecting the right company, buying shares in it at the right time and price, and subsequently selling them at the right time and price. Success on the stock market will therefore hinge on your ability to take the right decisions with respect to selection, timing and price. However, these decisions alone will not enable you to make the amount of money you want. That will depend on the following four factors(i)The amount of money you initially invest(ii)The period over which the money is invested(iii)The rate at which the invested capital appreciates in value and(iv)The income you drive from your invested capital during this period.Therefore, to achieve investment success you should keep these four factors in mind while winning decisions on selection, timing and price.But this is not all. Successful stock market investing goes for beyond selection, timing and price. It involves the setting of personal investment intents, formulating an inve stment plan and adopting a suitable investment strategy. The overall objective of every investor is to make money. To go further, it is to make of every investor is to make money. To go further, it is to make money at a rate that beats the rate of inflating. In other words, the board objective of all investment is to increase, or at