“I'm the type of woman who has always faced challenges in my business with a proverbial sword in hand. Why should I treat the compounding of wealth any differently?”

Investing in the stock market is one of the most effective ways to build wealth, yet many business women overlook it, either because they’re unsure where to start or they’re caught up in hustle culture, reinvesting everything back into their business. 

But here’s the truth: building a diversified investment portfolio can free you from the cycle of nonstop work and give your money the opportunity to work for you.

In my early 30s, I was super skeptical of investing. 

I had been an entrepreneur for over a decade! 

I'd built successful businesses, by reinvesting the profits back into advertising, R&D, and my own personal & professional development. 

Investing in myself felt like a sure thing. 

Investing in the stock market seemed like a massive gamble... and I'd never liked Las Vegas ;-)

Then one day I read this quote by Warren Buffett:

“Risk comes from not knowing what you are doing.”

I realized I was avoiding the stock market simply and ONLY because I didn't understand it. And yet I'm the type of woman who has always faced challenges in my business with a proverbial sword in hand. Why should I treat the compounding of wealth any differently?

So I became obsessed with learning everything I could about the stock market.

And quickly found that there are many different strategies, each with its own goal, potential for gain, and risks. 

I settled on Value Investing as my absolute favorite.

Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic value. Value investors actively ferret out stocks they think the stock market is underestimating. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond to a company's long-term fundamentals. The overreaction offers an opportunity to profit by purchasing stocks at discounted prices.

What girl doesn't love to buy high-value items at clearance prices? ;-)

Stocks are just ownership in actual companies. And I've owned my own company since I was 19 years old. Surely I could learn to evaluate which publicly-traded companies are worth buying into?

So I made it my mission to learn Value Investing. 

That's when I met Kiana Danial, a former Wall Street girly who cracked the code and went on to build a $5M portfolio in the stock market.

Kiana taught me how to evaluate stocks for REAL value (not just what the market thinks its worth at the time) and reduce my risk by--you guessed it--becoming a Confident InvestHER.

 Today I've gone from ZERO investments, savings or retirement plan... to being on track to retire 20 years early! All because I refuse to invest in companies I don't fully understand (thanks Buffett).

In fact, as I write this, I have worked a total of 8 days this month, spending the rest of the time with my family traveling in Hawaii, or relaxing at home.

This was only possible because of the investments I've made which pays more than half my bills every month completely passively... so that I only have to work a few days a MONTH to pay the rest.

Kiana taught me how to evaluate stocks, and in this article, I'm going to break down for you step-by-step my Feminine Fortune Formula so you can do the same.

The Feminine Fortune Formula

Step 1: Abundance Resolution

The first and most crucial step in value investing is understanding your “why.” Before you dive into stock selection, you have to have an Abundance Mindset, and get clear on your investment goals and risk tolerance. That's what the Abundance Resolution is all about.

• Define Your Goals: Are you looking to create a secondary income stream, save for retirement, or build a wealth legacy? Clarify your end goal to align your investment choices accordingly.

• Set Specific Investment Strategies: Decide on an approach that suits your goals and lifestyle. For example, are you interested in dividend stocks for passive income or growth stocks for high return over time?

• Assess Your Risk Tolerance: How much volatility can you handle? If you’re risk-averse, consider investing in stable, established companies. For those with higher risk tolerance, growth stocks could be a better fit.

Abundance mindset is about grounding your investment decisions in a clear purpose, which sets a strong foundation for long-term success.

Step 2: Cash Couture Assessment

Now that you’re clear on your goals, the next step is to understand how much extra cash you’re willing to commit to your investment strategy. Cash Couture Assessment is about assessing your budget and making sure this is "throw away money" so you don't steal from your rent money, groceries, etc.

• Determine Your Investment Amount and Frequency: Decide on an initial investment amount and a regular contribution schedule (e.g., monthly or quarterly).

• Assess Your Overall Financial Plan: Ensure your investment plan fits within your financial priorities, such as emergency savings, retirement contributions, and debt management.

• Risk Management Strategies: Set rules for limiting risk, such as only investing a certain percentage of your capital in higher-risk stocks or using diversification to reduce risk exposure.

A well-thought-out Cash Couture Assessment allows you to build an investment strategy that’s sustainable and flexible, helping you to stick with it through market ups and downs.

Next, we'll start evaluating which stocks to invest in:

Step 3: Designer Piece Pick (Answers the Question "WHAT should I invest in?")

Here, you evaluate the financial health and potential of a company, looking for solid long-term growth indicators. This is the most critical step in the Feminine Fortune Formula, as it helps you determine whether a stock is undervalued and worth your investment.

• Review Key Financial Metrics: Look at a company’s revenue, earnings, debt levels, and cash flow. A company with steady revenue and profit growth, low debt, and positive cash flow is often a strong candidate for value investing. Remember: we want to buy high value items at clearance prices! ;-)

• Analyze Industry Position: Research the company’s position within its industry. Does it have a competitive advantage, like innovative products, brand loyalty, or cost leadership?

• Consider Economic Conditions: Assess how economic factors like inflation, interest rates, and market cycles could impact the company’s growth potential. Some companies perform better in certain economic climates; understanding this can enhance your investment decisions.

By focusing on companies with solid fundamentals, you increase your chances of selecting stocks that will grow steadily and generate long-term value.

Want to watch me break down a Designer Piece Pick step-by-step? Click Here For My FREE On-Demand Stock Market Training for Beginners!

Step 4: Brand Authenticity Check (Answers the Question "WHEN should I invest in it?")

Once you’ve found a fundamentally sound stock to invest in, my Brand Authenticity Check helps you decide when to buy. This step involves analyzing market trends, price movements, and chart patterns to identify favorable entry points.

• Understand Price Movement and Volume: Price and volume trends reveal supply and demand in the market, which can indicate when a stock is likely to move up or down.

• Use Technical Indicators: Tools like Fibonacci retracements, the Ichimoku Cloud, and the Relative Strength Index (RSI) help you assess whether a stock is overbought, oversold, or in a price reversal (swinging another direction).

• Identify Chart Patterns: Look for established patterns and trendlines to determine if the timing is right for a purchase. (Just like you have used the Plan HER Profits Method to look at chart patterns in your own business!)

While it’s impossible to time the market perfectly, the Brand Authenticity Checklist can give you a strategic edge in determining a good entry point, helping you avoid buying at high prices and enhancing your returns.

Step 5: Girl Gang Vibe Check (Answers the Question "WHO is vibing with this investment?")

Lastly, imagine if you were about to join a new gym, church or local girl gang ;-) You would probably look at testimonials, reviews, and ask mutual friends "how are the vibes?". My Girl Gang Vibe Check gauges the overall mood and opinions of investors and experts about a particular stock or the broader market. This aspect of the Feminine Fortune Formula is valuable for predicting short-term movements and understanding when the market might be overreacting to news (giving you a competitive advantage in this clearance sale!).

• Gauge Investor Mood: Investor sentiment can affect stock prices, often driving them higher or lower based on fear, greed, or hype. Analyze news, forums, and analyst opinions to get a sense of how people feel about a stock.

• Evaluate Market Communication: Read quarterly reports and earnings calls for insight into a company’s future direction and how its leadership handles challenges.

This gives you a well-rounded view of market trends, helping you make more informed decisions and avoid getting swept up in market hype.

Summary

The Feminine Fortune Formula is is my favorite stock picking strategy because it empowers you to make smart, confident stock choices. Following this method has really made me feel confident as an InvestHER!

Value investing isn’t about chasing quick profits; it’s about strategically growing your wealth by choosing quality stocks that have the potential for long-term growth. As female entrepreneurs, investing offers us an escape from hustle culture and a pathway to achieving financial freedom.

Ready to dive deeper into stock investing strategies that can fast-track your wealth-building journey? Click here to get instant access to my free on-demand training on The Feminine Fortune Formula to learn how to amplify your earnings through smart, time-tested investment techniques.