Investing during weekends and in your spare time can be extremely rewarding. With the busy schedules of work and life, finding time to focus on investments might seem difficult. However, with some planning and focus, weekends can become the perfect time to dive deep into investment research, analysis and education. The key is having a plan on how to use your spare time most efficiently. Here are some tips on how make the most out of your weekends for becoming a better investor.
Schedule your time and set specific goals for the weekend
Having a schedule is essential to stay focused and productive during weekends. Outline specific times for investment reading and research. Set SMART goals that are Specific, Measurable, Achievable, Relevant and Time-bound. For example, finish reading two 10-K annual reports of companies in your watchlist by Sunday evening. Or listen to three investing podcast episodes about value investing metrics. Having defined goals will help structure your time on the weekends.
Leverage educational resources to expand your knowledge
The weekend is a great chance to take online courses, listen to podcasts and read books on investing. Massive open online courses like those on Coursera are a low-cost way to take university classes on finance and investments from the comfort of your home. Subscribe to podcasts like Invest Like the Best or The Investor’s Podcast to get insights from famous investors each weekend. Read classics like The Intelligent Investor or modern books like Richer, Wiser, Happier to continually improve your investment acumen.
Analyze and value potential stocks to add to your portfolio
Use websites like GuruFocus to analyze the financials and valuation of stocks you want to invest in. Read the annual reports and investor presentations to understand the business model better. Make excel models to forecast future cashflows. Value stocks using different valuation techniques like DCF, comparables or asset-based valuation. Look for red flags or competitive advantages. By dedicating a few hours each weekend to stock analysis, you can develop a shortlist of high conviction picks to add to your portfolio.
Review and optimize your current portfolio holdings
It is important to periodically review your current stock holdings even if you have a buy and hold strategy. Check if the investment thesis still holds. Analyze any changes to market environment, competitive landscape and regulations. Review valuations to see if your margin of safety has reduced substantially. Track insider buying/selling activity. If your conviction level for a stock has reduced, consider selling it and reallocating capital to better ideas. The weekend is the perfect time for such portfolio reviews.
Practice paper trading and read market news
Open a paper trading account to practice executing trades without risking real capital. Use fake money to buy/sell stocks and ETFs. This will help you get comfortable with placing different types of orders. Spend some time reading financial news sites like MarketWatch to stay up-to-date on market events and sentiment. Following market news daily is key to being an informed investor able to swoop down on opportunities.
In summary, weekends and spare time can become treasure troves of investment education and analysis if you have the discipline. Prepare a schedule, set goals, take classes, listen to podcasts, read books, analyze stocks, review portfolio and paper trade. By focusing your weekends on becoming a better investor, you will see the positive effects on your portfolio and performance.