As shared in a previous blog post, I occasionally visit Investopedia to review questions submitted. When I respond to a particular question, I will share it here as well.
I am looking to get more into investing. I have a Robinhood account for my personal trades (only about a $4,000 portfolio value) and I also have about 80% of my life savings in a PNC investment account which I invested $12,000 into American Funds (mutual fund family). What is your favorite type of investing strategy (i.e. swing, value, position, etc.) and why do you think it is best? I would also love to hear what books you suggest I read. I know every investor has some books that they’ve learned a lot from. As of now, I learn most of my information from Marketwatch, Investopedia, and StockTwits.
Thank you for the question, and congratulations on seeking out additional information with regard to investing. If you intend to invest on your own, it is a great idea to be well-informed about varying philosophies. For my personal investments, and for those of my clients, I prefer Evidence Based Investing. It is an investing philosophy based on, you guessed it, historical data. You might also hear this described as factor investing, which is a very important component to the strategy. You will find a great deal of information online when searching either term. There are quite a few books written on the topic as well, but I suggest you start with “The Investment Answer” written by Daniel C. Goldie, CFA, CFP, and Gordon S. Murray.