Popular Themes Among Investors

There are?various?factors affecting?investors' decisions?about investing?their hard earned?money. New?investors are always?worried about?their investment's safety and?try to learn about?its factors from?experienced investors. In this?blogpost, I will?discuss the?popular themes for?investing.

We have already discussed one of them in previous articles -?Invest in Discounted Shares.

So let's?move on to?other famous themes among investors -

1. Low on 10?years average earnings?

Companies that have low average earnings over a 10 year period are often seen as potential bargains by investors. These companies may have experienced a dip in their fortunes, but may be turning around or about to enter a growth phase. As such, these companies can be attractive investments for savvy investors.?This is often?referred to as?"value investing", which involves buying?stocks trading?at?a?price lower?than their 10-year average earnings. This strategy?assumes?that the stock will eventually recover from its current depressed level and return to its historical average.

Value Investing was developed in the 1920s at Columbia Business School by finance adjunct Benjamin Graham (1894-1976) and finance professor David Dodd MS '21 (1885-1988).?Warren Buffet is one of the most successful investors in history and credits much of his success?to Value?Investing principles developed by Graham and Dodd.

2. Capacity Expansion?

Invest in those?companies?with?capacity?for expansion.?This can mean investing in additional production facilities, personnel, or research and development departments. It can also mean investing in companies that have the potential to acquire other companies or expand their product lines.?Such investments often result in higher returns for investors in the long run. Additionally, it can help businesses grow and become more competitive in their respective markets. Finally, it can create more jobs and help spur economic growth.

Investing in such companies can help?you?diversify your portfolio and increase?your long-term growth potential.?Acquire?other businesses and expand their market share. This type of expansion can be?an effective?way to increase profits in the long run.

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