The Motley Fool's Weekly Editors' Picks
Fools were out and about this week in an investing world jampacked with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
3 Stocks That Other Investors Are Overlooking, but You Shouldn'tFool contributor Matt Koppenheffer tackled one of the many dilemmas facing investors: "You can buy the greatest company out there, but if you pay too high of a price, you may struggle to make money as the valuation comes back to earth."
The sunny side to a great company's stock going nowhere is that "as years of poor stock performance pile up, investors increasingly give up on the stock, and what was once a wildly overvalued stock suddenly becomes a very attractively undervalued stock," Matt wrote. In addition to citing fellow Fool Anand Chokkavelu's examples of Microsoft (NAS: MSFT) and Wal-Mart (NYS: WMT) , he named three other companies fitting the bill: Medtronic (NYS: MDT) , Abbott Labs (NYS: ABT) , and Walgreen (NYS: WAG) .
Read the article to find out more about why now might be the time to take a closer look at these companies.
Why an Apple Dividend Would Be Bad for InvestorsThe possibility that Apple (NAS: AAPL) could pay a dividend was the topic in Wednesday's edition of The Motley Fool's MarketFoolery podcast. Host Chris Hill was joined by advisors Andy Cross, Jeff Fischer, and James Early.
Andy acknowledged that investors like to get money back from the companies they invest in but said: "Apple has such a great culture of innovation. ... All that stuff that makes Apple, Apple, you want to make sure that doesn't die, at least for the employees, as well as for the shareholders. I think paying a dividend at this point is a little premature." Jeff was also in the anti-dividend camp.
James, a self-proclaimed Apple fan, offered an opposing view: "If you have that much cash ... for that long, you obviously don't know what to do with it. Obviously, paying a dividend is the best decision."
Listen to the podcast to learn more about the Apple situation and the relationship that tech companies in general have with dividends.
6 Steps to Becoming a Master InvestorSo you want to be a master investor? To get you started in the right direction, Motley Fool Rising Star analyst Joe Tenebruso set out six steps to becoming a master investor. The process isn't quick or easy, but the financial rewards will hopefully make up for the effort.
The steps Joe talks about include:
- Effortful study: "Doing things you're comfortable with and already good at allows your abilities to reach a plateau. Effortful study, in contrast, includes taking on challenges just beyond your competence."
- Deliberate practice: "It's not enough to sit back and read The Wall Street Journal or watch CNBC and think you're improving as an investor. You actually have to study and value businesses. You also have to talk about your ideas and receive feedback so you can adjust and improve your process."
Check out the article to see all six steps, and return often to fool.com to keep improving your investing skills. Joining Motley Fool CAPS would be a great way to connect with other investors on the same path.
At the time this article was published Fool online editor Kris Eddy owns no shares of any stocks mentioned in this article.The Motley Fool owns shares of Wal-Mart, Microsoft, Medtronic, Apple, and Abbott Labs.Motley Fool newsletter serviceshave recommended buying shares of Apple, Microsoft, Abbott Labs, and Wal-Mart, as well as creating bull call spread positions in Microsoft and Apple and a diagonal call position in Wal-Mart. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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