Last week, I discussed the one best investment that a new investor could make. I advised that this investment should be a group of companies (such as my Watch List) and the small investor should move the principle between “hot” stocks.

The money invested in stocks needs to be money that you do not need immediately. This does not mean that it is not necessarily money that you will not need for 20-30 years. If you have money that you are confident that you will not need for decades, you should probably invest that money in your own home. Follow the old Benjamin Franklin saying: "A penny saved, is a penny earned."

If you currently pay 7% interest on your home loan, any extra money that you apply to your mortgage will immediately give you a 7% return for the balance of your mortgage time. Therefore, paying a one-time extra $1,000 on a 7% mortgage that has 23 years left on it, then it will result in $5,002.04 that you did not have to pay over the course of the 23 years. This is an absolutely guaranteed return – over the course of 23 years you will be over $5,000 wealthier due to that one-time investment.

Your home mortgage is the safest "buy and hold" investment that you can make! You already know that you pay a certain percentage. If you pay the loan off early, you effectively make that loan percentage as an investment return.

The same logic goes for your car loan your credit cards. This is typically more short-term debt than your home. Quick payoff on any short-term debt will guarantee you the quickest and best investment strategy. You are not spending those pennies; you save them. Benjamin Franklin will be proud of your efforts to pay off your short-term and long-term debt quickly and efficiently.

Company name WMS Industries Inc.
Stock ticker WMS
Live stock price [stckqut]WMS[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Good
EBIT growth Poor
ANALYSIS
Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $9.12
Target stock price (averages with growth) $8.52
Target stock price (averages with no growth) $5.64
Target stock price (manual assumptions) $23.25

The following company description is from Google Finance: http://www.google.com/finance?q=wms

WMS Industries Inc. (WMS) serves the gaming industry by designing, manufacturing and distributing games, video and mechanical reel-spinning gaming machines and video lottery terminals (VLTs) to authorized customers in legal gaming venues worldwide. The Company’s products include video gaming machines, mechanical reel gaming machines and VLTs. WMS’s gaming products feature graphics, digital sound and engaging games, and most games incorporate secondary bonus rounds. Certain games are based on licensed brands, such as MONOPOLY, BATTLESHIP, THE WIZARD OF OZ and THE LORD OF THE RINGS, and all of its gaming machines utilize technologies licensed from third parties. In September 2010, WMS closed its Orion Gaming manufacturing facility, and in June 2011, it sold this facility and winded down the support of its Orion Gaming product lines. In July 2011, the Company sold Systems in Progress GmbH subsidiary (SiP).

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.