Where I get my investment ideas from

Back in October 2013 I got interested in the stock market because Twitter (TWTR) was going IPO (Initial Public Offering). Also, with interest rates on savings accounts near zero and central banks zero interest rate policy (ZIRP), only place to get any decent return on my cash is to invest in the stock market. Since then, I have bought shares in a number of companies but not Twitter. In that time I lost 60% of my investments or about $2,000. To me this is the cost of learning to identify undervalued assets.

It took a while to realize the "Warren Buffett investment tutorials" on Youtube were designed to give prospective investors a very basic idea for "long term investing". However, these tutorials were very complex and almost impossible to do. During the last year or so I started noticing a trend in my losses - companies has very high debt. So I started looking for companies with a debt to asset ratio of no greater that 40%. The losses slowed but did not stop. So I looked deeper and found a correlation between losses and a debt to equity ratio of 40% and higher. Since then I discovered that even when a company has a negative earning per share (EPS) it could still be profitable as long as the debt to equity was not greater than 15%. That was late last year.

Then in February, FutureMoneyTrends.com had a video on a Canadian silver mining company called Minco Silver Corporation (TSE:MSV). At the time, silver was selling for about US$14.00 and the company's shares were selling for about CDN$0.475. I "bought" 100 shares in one of my Google Finance portfolio games. Two months later silver and the shares of the company were up. Since then, Daniel Ameduri of FutureMoneyTrends.com, has recommended a few more companies. One being Callinex Mines Inc (TSX:CNX) and the most recent being Potash Ridge Corp (TSX:PRK). I have bought both MSV and CNX and plan to buy PRK.

If you are like me and are looking for great investment ideas, in a ZIRP environment I recommend taking a look at Daniel Ameduri's website at FutureMoneyTrends.com.