Avoid Digging Yourself Into an Investment Hole With These Tips

Stand by these fundamental investing rules when picking and choosing companies.

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
2 min read
Opinions expressed by Entrepreneur contributors are their own.

In this video, Entrepreneur Network partner Phil Town lays out a few guidelines to keep you from making poor investments.

It can be helpful to know when a stock is overpriced. Even if you understand a lot about a product, but you pay too much, you will not have a smart investing career. This can be boiled down to knowing the difference betwen price and value, or realizing that a price is an arbitrary measurement and may not be indicative of real value.

Town underscores the need to always stay rational. Emotion is the enemy of smart investing. To be a smart investor, you have to stay smart amid price swings.

Town also recommends buying companies on sale. Fortunately for investors, the market is not always rational. Oftentimes, investors will jump on a particular company simply because the rest of their investing peers are doing the same. Pay attention to companies that are well-priced and hold potential.

Click play to hear more investing fundamentals from Town.

Related: 3 Things You Should Think About Before Investing in Tech Stocks

Entrepreneur Network is a premium video network providing entertainment, education and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

EN is partnered with hundreds of top YouTube channels in the business vertical. Watch video from our network partners on demand on RokuApple TV and the Entrepreneur App available on iOS and Android devices.

Click here to become a part of this growing video network.

More from Entrepreneur
Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization
Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Try a risk-free trial of Entrepreneur’s BIZ PLANNING PLUS powered by LivePlan for 60 days:
  • Get step-by-step guidance for writing your plan
  • Gain inspiration from 500+ sample plans
  • Utilize business and legal templates
  • And much more

Latest on Entrepreneur