Investors are told to do their due diligence, and that means much more than looking at charts and statistics of a company. Of course, there are all different types of investing. In other words, it’s of course about much more than investors simply buying shares in a company. There are also people that invest directly, and then you have the fact company owners and founders also do their due diligence about investors. That’s where an investor’s background can come into play.
Investors also discuss their own backgrounds to network with colleagues, to gain employment and to provide investment advice. I have quite the investment background, albeit without having graced Wall Street or having been employed by a big firm. Investing has been a passion of mine since I was in high school, years before I was able to invest on my own. What type of investing do you do?
My investing background started with buying mutual funds through Edward Jones. That was how I got started when I was able to make purchases. Then several years later, I began using an online discount brokerage that was very innovative at the time. These days, I use a brokerage that allows me to buy shares of stock commission free. What baffles me is how many investors don’t know an option like that exists.
People continue to pay all kinds of commissions to buy stocks. Of course, I totally understand people who have tons of money wanting to use a more traditional brokerage. Still, it just makes sense to make thousands of money in commissions. That is the story of my investment background. What does yours say about you?
Do you do background research on companies? I do sometimes to a degree, but I am mostly a dividend investor. That doesn’t mean I pick blue-chip dividend stocks blindly. It also doesn’t mean that I don’t pick less well-known companies and have to do some intensive research. I also have invested in spec stocks and have had to really do some digging.
Again, investors aren’t the only ones that do background research. Company owners do background checks or look at background information on major investors, too. Have you been a major investor in a company before? If so, you were surely been vetted by the company. Of course, company owners also wine and dine their investors, making them feel important and extra special. If you have invested in a company directly, were you made to feel like that?
Whatever the case may be, the bottom line is it is the investor that is going to use his or her background to make investment decisions about a company. Furthermore, it is an investor that is going to want to do due diligence when researching a company. It is the investor that is ponying up the dough and putting trust in company owners and executives to provide him or her with a good ROI. So it is the background of the investor and the background research performed that matters most. Learn more by reading this Investors Underground review.