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Ask the Fool: Do sales tell the whole story?


Ideally, a company will have growing revenue and growing profits. But even good companies can have a year or two in the red perhaps because they re spending heavily on advertising or on growth, or because they re facing a temporary setback. And younger, smaller companies may run many losses in their early years. So unprofitability isn t necessarily a deal-breaker, but it s best to focus your dollars on companies that are reliably profitable.
With any possible investment, study its financial reports: Check whether it s gaining or losing market share, how strong its competitive advantages are, and whether its future seems promising.
Q: Can you recommend any investing guides for beginners? J.S., Bixby, Okla. ....

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Investing in 2021? Start your off right with this classic stock bundle


Fortunately, you can reap the benefits of the broader market by investing in a low-cost index fund, which buys a diversified mix of stocks for you at next-to-nothing in fees. That s why your New Year s investing resolution should be to start with the aforementioned S&P 500 Index Fund (NYSEMKT: SPY). 
Why Warren Buffett loves the S&P 500 Index fund, even though he doesn t buy it himself
In Vanguard founder Jack Bogle s book The Little Book of Common Sense Investing, Warren Buffet is quoted as saying, A low-cost index fund is the most sensible equity investment for the great majority of investors. . By periodically investing in an index fund, the know-nothing investor can actually out-perform most investment professionals. In fact, Buffett has even advised his estate to invest 90% of his wealth in an S&P 500 index fund after his death. ....

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