Don’t know what stocks to invest in? This sector could be for you

Julie Brownlee, Fsp Invest, 25 Jul. 2014

Tags: insurance, what stocks to invest in, investing strategy, insurance sector, insurance companies, benefits of investing in insurance sector, long-term investing strategy

If you’re not sure which stocks to invest in, or you’re just starting your investment portfolio, where’s a good starting point?

It’s a difficult question. But there is one sector of the stock market that bodes well over the long run.

Read on to uncover what sector this is…

It’s time to look at the insurance sector

You may be surprised, but insurance companies perform well over the long-term. You may not relish paying them for your home and car insurance, but they certainly get repeat business.

If you find the best insurance companies to invest in, they almost come with a guarantee that you’ll make money over the long-term.

The key is honing in on the best underwriters, Porter Stansberry in Daily Wealth explains. This means that they always receive more in insurance premiums than they pay out in insurance claims.

Over the long-term, these companies earn great returns. And the good news is, people will always use insurance. It’s not a fad.

Even when the economy is bad, the vast majority will stay pay their insurance premiums.

It all comes down to the fact that insurance companies make money even when they’re not paying out. And they don’t need to borrow any money, unlike most other businesses.

Insurance companies use their customers’ money to make them money

What they do is take the money they receive from their customers as premiums and invest it in other assets. Insurance companies only invest in relatively low risk assets, like fixed-income, so they can cover any claims they have to make.

If you buy into well-run insurance companies and keep these shares for the long-term, your money should grow. Warren Buffett is a big fan of investing in insurance companies.

If you’re interested in investing in insurance companies, do your research. Make sure you buy at the right price. You don’t want to overpay for stock.

So there you have it, if you don’t know what stocks to invest in, the insurance sector could be for you.

*********** Best seller *************

Your financial advisor does NOT want you to see this pattern...

And you could use it to bank a second income!

You can use this pattern to get rich, “working” just five minutes a week.

It’s easier than you ever imagined!

Click here to get your hands on this pattern today!


Related QA

d.c.heger asked:
MY QUESTION IS – I bought Bitcoin & Etherium some time ago – at first they grew nicely but now they are lower than what I paid for them. Should I [read more]
Published at 04 Apr. 2018 in: Investing 5 shares due to rocket 1 Answer
kavesh.maharaj.73 asked:
Hi Josh. I would like some advice on TFSA. I can get an interest rate of 7.8% nominal at a bank if I invest the R33k upfront in a fixed deposit [read more]
Published at 19 Mar. 2018 in: Investing Tax free savings vehicle 2 answers
kavesh.maharaj.73 asked:
Hi Josh Quantum wants to buy back shares from shall investors at what I think is a low price of around R3.86. You tipped the share in February [read more]
Published at 14 Mar. 2018 in: Investing Real wealth 5 answers
elizastrydom asked:
Hi Timon I am interested in registering for your Red Hot Storm Trader service. I am already a Red Hot Penny Shares investor. My question is [read more]
Published at 28 Feb. 2018 in: Investing Trading platform and broker 1 Answer
ManuE asked:
I have an interest in investing in Bitcoin, I just don't know how. If I buy Bitcoin with R15 000, how much can make (Return On Investment)? [read more]
Published at 25 Feb. 2018 in: Investing Investment 1 Answer

Related articles:




Youtube Twitter Facebook

Connect with us:    

  • Accelerated Investor
  • Accessories
  • Accountancy