No, the UK stock market is not open today. It is a bank holiday due to the Coronation of Charles III. But a day like today can be your chance to do your most important investment work.
According to Warren Buffett, the most important investment you can make is yourself. With that in mind, here are three investment ideas for when the stock market is closed.
Buffett often stresses the importance of investors staying within their capabilities. Expanding your circle is one way to invest in yourself while the stock market is closed.
There are many good ways to do this, but one of the best ways is to research the stocks you own. That includes reading reports, watching the news, and hearing other people’s opinions.
This helps in several ways. First, it keeps you up to date on the status of the businesses you own and whether your investments are performing as expected.
In addition to this, it also helps me understand other companies that I might not have thought of. These could be stocks in the same sector, or stocks with similar business models.
For example, I own stock Forterra – Brick makers.Reading the company’s take on the UK housing outlook will help you think about stocks like right alignment and persimmon.
Researching and learning about the stocks you own or are looking to buy can help you make better decisions. This is a great way to invest in yourself during the holidays when the stock market is closed.
Another way to invest in yourself is to do something to earn extra income. In many ways, figuring out how to generate cash is more important than figuring out what to invest in.
took Berkshire HathawayTake for example our recent investment in a Japanese trading company. Much attention has been focused on what Buffett bought, but the real key is where the money came from.
According to its annual report, Berkshire has issued Japanese yen-denominated bonds with an average interest rate of 0.7%. By investing with a higher rate of return, the company can make a profit.
Japanese trading company stocks currently offer dividend yields of 2.8% to 5.5%. Berkshire is therefore paying his 0.7% interest and receiving dividends at a much higher rate.
Having a low-cost source of capital allows Buffett to make more cash-generating investments. And that’s something I can work on even when the market is closed.
Bonds cannot be issued at 0.7% Japanese Yen. But you can figure out how to generate extra cash to invest. That’s something you can do even when the stock market isn’t open.
Invest when the stock market is closed
Warren Buffett has made his fortune by seizing opportunities when they present themselves. And I think bank holidays are a great time to invest in yourself for exactly that.
Expanding your circle of competence should help you find good opportunities. And by building an extra income stream, you should be able to have them when the stock market reopens.
Post Is the UK stock market open today? First appeared on The Motley Fool UK.
Stephen Wright works for Berkshire Hathaway, Forterra Plc and Rightmove Plc. Motley Fool UK recommends Rightmove Plc. The views expressed about the companies mentioned in this article are my own and may differ from the official recommendations I make on subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering diverse insights makes us better investors.
Motley Fool UK 2023