The Motley Fool jumped into the new year with gusto. In fact, the Fool is thinking of changing its middle name to "Gusto." Here's a recap of three great Fool articles you may have missed this week as you reveled in your own gusto-osity.
3 Signs of a Terrible Investment:
Are we so busy looking for good investments that we forget the value in knowing how to spot lousy ones? Fool writer Matt Koppenheffer draws on the wisdom of Warren Buffett to remind us that a poor business model, sky-high valuation, and loss of focus are three signs of a terrible investment.
"Keeping these lessons in mind when evaluating an investment will help you avoid some of the next decade's worst investments, but they may also help you achieve the goal that we started with -- finding the next Wal-Mart (NYSE: WMT ) ," Matt writes. "After all, Wal-Mart is a company with a great business model and a laser-like focus on its core low-priced-retail strategy, and it's been a fantastic investment for those who bought at a fair price."
Click to the story to see Matt's insights on other stocks you might want to avoid.
Fiscal Fitness Boot Camp Starts Now:
Up and at 'em! The Motley Fool wants you! To join its Fiscal Fitness Boot Camp 2010. Throughout January, we'll outline simple money moves to save you $2,000.
Drill sergeant Dayana Yochim lays it out: "Like last year, we'll post our best money-saving tips each weekday through the month of January," writes Dayana, the Fool's consumer finance expert. "Again, we've streamlined each daily task so that it can be accomplished in less time than it takes to wolf down your lunch. (Immediate gratification is a powerful motivator, after all.) ... But we'll have some new twists on old strategies."
Last year, Fool newsletter editors handpicked three stocks -- Costco (Nasdaq: COST ) , Paychex (Nasdaq: PAYX ) , and National Oilwell Varco (NYSE: NOV ) -- that did well for readers last year. Although this year's boot camp won't have its own stock picks, that $2,000 will give you plenty of opportunity to capitalize on the good investing ideas you'll find throughout the Fool.
One Investment We'll Be Avoiding:
Fool analyst Todd Wenning has words of warning for all investors, particularly those trying to profit from gold:
People buy into bubbles for any number of reasons -- the desire to "get rich quick" or to seek comfort and confirmation in numbers (i.e., better to not be wrong alone). Whatever the case may be, you'll live a less stressful life and have a better chance of generating long-term profits from your investments if you avoid investing alongside the masses.
JFK helps Todd tell his tale, as he points to the ghost of a sock puppet and a dash of Dutch tulips. Of course, Todd also sprinkles in ways to diversify away from gold.
For instance, if you expect a weaker dollar, Todd suggests considering foreign-based assets and stocks of businesses that do little or no business in the U.S., like Philip Morris International (NYSE: PM ) and America Movil (NYSE: AMX ) .
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