The Motley Fool's Weekly Editors' Picks
Fools were out and about this past week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
4 Big Mistakes That Will Devastate Your Finances
Ensuring a comfortable retirement is a big deal. You have to do a lot of things to make it happen. You also have to not do a lot of things if you want to get the best results. Fool analyst Dan Caplinger laid out four big mistakes that could devastate your finances.
Mistake No. 1 is putting off saving. "Every dollar you set aside at age 25 will give you twice the nest egg in retirement as a dollar saved at age 35, assuming a 7% annual return," Dan wrote. Good to know.
Another mistake that Dan highlights is "dumping stocks on dips." He notes that he sold shares of Starbucks (NAS: SBUX) in 2008 to harvest tax losses. "I convinced myself that in a new era of austerity, the days of the $4 latte were numbered," Dan wrote. But competition from Green Mountain Coffee Roasters and McDonald's didn't weigh on Starbucks as he thought it would, and the stock has risen sixfold.
"Every day, the stock market gives you chances to leap before you look," Dan wrote. "Occasionally, your emotional response will turn out to be right -- but often, you'll regret that gut-driven move in the long run."
1 Stock to Buy in May: Google
Fool analyst Anders Bylund gives readers the rundown on a stock that turns conventional wisdom on its head. "In Google (NAS: GOOG) , you get astounding growth and sensational innovation in a thriving sector, all for the price of a has-been in a mature and dying industry," Anders wrote in an article suggesting investors buy shares in May and stay in for the long term.
Google boasts Android and YouTube and makes money from online advertising. "Click by click, Internet users of every stripe contribute to Google's bulging coffers," Anders wrote. Google may have passed up an opportunity in China in favor of standing against censorship, but Anders is OK with that, noting the importance of brand integrity. And the stock is undervalued!
Read the article to get all of Anders' analysis of the Google buying opportunity.
3 Value Investing Myths Busted
It's your weekend, value investors. Time for the annual Berkshire Hathaway (NYS: BRK.B) shareholder meeting. In advance of the big event, Joe Magyer, advisor of The Motley Fool's Inside Value newsletter service, set about finding the truth behind three myths about value investing.
It's not true that you can't beat the market with large-cap stocks, Joe reports, using Coca-Cola (NYS: KO) as an example. Everyone knows how Coke makes money and plenty of analysts follow it, so where's the chance to make money from the stock? Well, Joe points out that there have been large swings in Coke's share price, giving "patient investors who preyed on Mr. Market's emotions" opportunities to make money by buying or shorting shares at different points. Since their low in 2004, shares are up 102%, plus dividends, Joe wrote. It has a 2.7% yield, according to Yahoo! Finance.
Are you already looking ahead to fall? Then you'll want to check out the new Motley Fool free report "These Stocks Could Skyrocket After the 2012 Presidential Election."
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 Google, Berkshire Hathaway, Coca-Cola, and Starbucks.Motley Fool newsletter serviceshave recommended buying shares of Berkshire Hathaway, Google, Green Mountain Coffee Roasters, Starbucks, McDonald's, and Coca-Cola, as well as writing covered calls on Starbucks and creating a lurking gator position in Green Mountain Coffee Roasters. The Motley Fool has adisclosure policy.We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.