Written by Joey Frenette at The Motley Fool Canada
New investors looking to double up need to extend their time horizons. Otherwise, they could find themselves extending their risk profile, perhaps by a drastic amount. The greater the reward potential you seek, the more risk you tend to bear.
As a value investor, your mission is to maximize the reward relative to the risks. In other words, you want to get the absolute best risk/reward opportunity in the market at any given time. Undoubtedly, this is easier said than done, especially if you’re a new investor who hasn’t been in the investment game for very long.
Still, I believe that beginner investors can learn the ropes and do well over time rather than having to settle for average. While I’m also a big fan of index funds (those that track the S&P 500, not the undiversified TSX Index) for investors who don’t want to have to put in the work, I do think…
