How much time is needed to be effective stock investor?

Questions & AnswersCategory: QuestionsHow much time is needed to be effective stock investor?
Anonymous Staff asked
1 Answers
Grant Staff answered

There is no magic amount of time and it also depends on what your idea of effective is.
You could simply just invest your money in a low-fee S&P 500 index fund and keep pace with the market.

I would say that this is effective, because you would consistently beat almost all mutual funds and active fund managers. The time needed for this is minimal.

Or you could be even more effective with taking a more active approach. This will likely require at least a few hours of analyzing stocks per week. But being more active or spending more time with investing doesn’t always = better results.

In my opinion, better results can be achieved by buying good companies at bargain prices. Choosing companies that you know of and ones that have a competitive advantage. They should also have low long-term debt levels and you should be willing to hold onto them for the long term if you need to.

You must control your emotions to be an effective investor over the long haul.

Hope that info is helpful.
-Grant

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