Tip 4: Be a penny-pincher.
It may not seem worth it to shop around for the lowest brokerage commission on stocks or the cheapest mutual fund or exchange-traded fund. But fractions of a percentage point add up over time, and keeping money in your pocket rather than letting it go to your financial institution can make a huge difference to the size of your nest egg after years of investing.
That doesn’t mean you should always skimp, especially if you’re getting a unique opportunity with your money. But often, you’ll find very similar options at much different prices. For instance, until very recently, both Vanguard MSCI Emerging Markets ETF (NYSEMKT:VWO) and iShares Emerging Markets tracked the same underlying index and mostly owned the same stocks. Yet the Vanguard MSCI Emerging Markets ETF (NYSEMKT:VWO) fund charged about a third what the iShares fund did. Even considering other cost factors, there was little reason for long-term investors to pay higher expenses.
Tip 5: Be humble.
No matter how long you invest in stocks, never stop trying to learn new things. Between innovative financial products and unprecedented market conditions, it’s a lot of work to keep up to speed on the investing world. But as long as you never think you’ve learned everything you need to know, you’ll be open to new experiences that can open up profitable opportunities.
Tips to live by
These stock tips may not give you inside information, but they nevertheless have the potential to change your investing life. Follow them and you’ll greatly improve your chances of succeeding with your investments.
The article 5 Stock Tips You Can Really Profit From originally appeared on Fool.com.
Fool contributor Dan Caplinger owns shares of Vanguard Emerging Markets ETF. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Cisco Systems (NASDAQ:CSCO) and Intel. The Motley Fool owns shares of Crocs and Intel.
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