Your client may need more information before investing in particular stocks.
To help convince your client to invest in particular stocks, calculate the true profit potential of a holding the way Warren Buffett does.
For a holding with less than 20% ownership in a company, calculate the look-through earnings (dividends + per cent retained operating earnings (excluding capital gains) – taxes). Compare the result with the reported earnings. Explain to your client the significance of the difference, and have research ready about how the company uses the retained earnings.
Tips for managing risk in uncertain times
A look at the factors
Read our explainer articles to understand market ups and downs
Stock markets are always moving, and that can be a good thing
Help clients get the maximum benefit from these accounts
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