An ounce of prevention is worth a pound of cure. Cliche, but true. And nowhere is it more true than investment due diligence. I’ve saved my coaching clients hundreds of thousands of dollars using the exact techniques taught in this article to easily detect bad deals before a single penny was lost. Use this article to help you avoid the next big investment mistake…
Investment Due Diligence 101 Tutorial Guide
Investment Due Diligence Requires Asking Tough Questions, Because What You Don't Know About An Investment Can Hurt You
Investment due diligence is what separates professional investors from novices.
Thoroughly investigating each investment, broker and money manager before handing over your money can protect you from catastrophic loss and help you make more profitable, informed investment decisions.
The primary objective of any due diligence checklist is to answer four basic questions:
- What are the expected investment return characteristics?
- What is the investment risk profile?
- Are the people competent?
- Are the people honest?
Unfortunately, performing investment due diligence is not easy. Investment styles vary widely, reporting results aren't standardized, and accessibility to key personnel so that you can get your questions answered can be difficult.
And if that weren't enough, due diligence takes more time and effort than most people want to spend on the process.
Fortunately, there is a solution: an efficient short-cut for due diligence is available through the internet.
It's now possible to complete preliminary, basic due diligence on virtually any investment, broker or money manager for almost no cost and a few clicks of a mouse. This can save tremendous time and effort by quickly eliminating obvious frauds and other unsuitable investments.
By starting your due diligence process with an internet based checklist you can save valuable time and money allowing you to focus more thorough due diligence only on investments meriting a second look.
See the articles below for the information you need to develop your own, personalized due diligence process:
- Due Diligence: Five "Must-Ask" Questions Before Making Any Investment - Learn what due diligence questions to ask so that you can avoid losing investments before they cost you money.
- Twelve Insider Tips For Finding Financial Advice You Can Trust: Find out if your financial advice passes this "gold standard" test by learning the essential questions that can separate good investment advice from bad.
- Investment Fraud Prevention: A Due Diligence Checklist - Reveals the crucial questions to protect you from investment fraud and send the con-artist ducking for cover.
- 6 Reasons To Become Your Own Financial Expert - Learn the conflicts of interest hiding behind financial advice and why you must always perform you own due diligence to make smarter, more profitable investment decisions.
- Variable Annuity Due Diligence: Uncover the truth hiding behind the variable annuity salesman's hype so that you can independently decide if it is an appropriate investment for you.
- Ten Commandments of Investment Strategy: Find out how your investment strategy measures up to proven success principles and learn what you can do to increase your financial security. Includes a section on due diligence.
Below you’ll find a listing of our most recent articles about investment due diligence providing you with additional strategies and information so you can take the next step…
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