This week I’ve continued to learn more about the basics of equities markets. Previously, I did not realize that dividends paid in the form of more stock could be a bad sign for a company. I know see that this is a sign that companies have insufficient cash to meet expectations. I also started making actual trades this week.
I decided to test the waters by investing about 10,000 apiece in 5 companies that I thought were dispersed across different sectors. I picked stocks I knew well like Apple and Goldman Sachs. Additionally I bought an index fund of the S&P500, this is where most of my gain came from, but that’s only because the investment in that was about 10 times the total investment in all other stocks.