QuickTips Index
Earnings Season
On Wall Street, earnings season is the month after the end of each quarter when companies report their quarterly earnings and other important financial information in conference calls and SEC filings such as the 10q and 10k. Earnings season is important because it gives investors information about the stocks in which they hold ownership.
The Biggest Rip-Off Fees of All
So-called safe keeping fees and custodial fees from your broker or bank are nothing short of a rip off. You should not have to pay safe keeping fees or custodial fees. To find out why, this article will explain.
What are the Summer Doldrums?
The summer doldrums is a phenomenon in the stock market where trading volume falls substantially as a result of investor psychology. Typically, the summer doldrums are a result of money managers spending more time on vacation and outdoors rather than inside reviewing financial statements and buying or selling stocks.
Successful Investing Is Not Sexy
In the world of investing, most of the great gains are made in boring companies or index funds that aren't sexy. That means things like water utilities, power plants, banks, insurance, candy, chocolates. It all comes down to the price you pay for the asset and your focus on low costs and sufficient diversification.
How to Determine the Percentage of Your Portfolio to Invest in Bonds
Burton Malkiel, famed author of A Random Walk Down Wall Street and respected Ivy League educator has said that a good rule of thumb for investors to use in order to determine the percentage of their assets that should be invested in bonds is to simply look at their birth certificate. A 30 year old? 30% bond allocation. A 60 year old? 60% bond allocation.
Why It Might Be a Horrible Mistake to Sell Out During a Down Market
If you are more than five years away from retirement, your 401(k) was invested in a broadly diversified, low-cost index fund, and you’ve sold off your assets as the market has collapsed, you have made a very, very stupid long-term decision. Believe me, I wish it could be sugar coated, but you’ve effectively just dumped your ownership of great American businesses such as Johnson & Johnson, Coca-Cola, Wal-Mart Stores, and General Electric to value investors at a fraction of their intrinsic value.
Wisdom from Peter Drucker
In his treatise Management, famed management guru Peter Drucker gave one of the best and most succinct pieces of wisdom I've ever read. It dealt with long-range plans and the need for action today.
Ticker Spy Lets You Peek on the Holdings of the Big Investors
There is a new investment service called Ticker Spy that allows you to see the investment holdings of great investors that are required to disclose their holdings to the Securities and Exchange Commission. The Ticker Spy service gets that data and puts it into a format that you can understand and search through in a few seconds.
Warren Buffett's 20 Ticket Punch Card
Warren Buffett has often told students and investors that they should act as if they have a punch card with only twenty slots and those are the only allocation decisions they can make in their entire life. This punch card has been quoted by famed investor Lou Simpson in helping to account for his success at GEICO.
Giving to Charity? You Might Want to Consider Donating Your Stocks
Donating stocks and other marketable securities to your favorite charities could mean more money for the charitable organization and a bigger tax write-off for you and your family. To find information about why donating appreciated securities might possibly be useful or preferable, take a moment to read this quick tip.
Investing Tip - Getting Annual Reports Delivered Automatically
Holding at least one share of your stocks in stock certificate form or through direct registration will make it easier to receive annual reports and proxy statement information in the mail.
Building Equity in Businesses
The easiest way to build your net worth is to build your ownership of businesses. If you rely on your labor, your ability to work, you are always going to be limited by your physical capacity for labor and the amount of time you can put into your efforts. Ownership of a business or businesses, on the other hand, can allow you to make money. Think about all the people in the world drinking soda, or shaving, or heating their homes all while you are sleeping at home, secure in your bed!
The $25,000 Bouquet of Roses
Today, I happened to stop by a flower shop near my office and pick up a dozen long-stem red roses for the foyer of my investing company’s headquarters. Not thinking that it was near Valentine’s day, nor really paying attention, I selected a dozen premium flowers and, upon paying, realized I had just dropped roughly $93.50. That would have been fine, except it wasn’t something that I expected – but it was too late.
Investing in Health Insurance
One of the leading causes of financial disaster, namely bankruptcy, is the result of a lack of health insurance. It doesn’t make a lot of sense for you to begin investing in common stocks through a brokerage account or direct stock purchase plan if you don’t have good health insurance with reasonable deductibles.
Want to Invest and Get Seriously Rich? Find the Right Employer!
Did you know that some employers will actually pay huge bonuses to employees at the end of the year for them to build their retirement accounts? Firms that offer such programs can sometimes pay working dividends of up to 15 percent or more of base salary into profit sharing plans or 401k plans, just to name two examples, on top of other contributions the workers may have made.
Uncovering a Bad Investment - Some Real Life Examples
I’m at my home office, reading through the annual report of a company with which many of you would have at least some familiarity based on normal shopping patterns. I’m absolutely baffled that such mediocrity can exist and it makes me angry that the average investor would not be able to uncover it by flipping through a Wall Street brokerage report.
Value Line Investment Survey
The flagship newsletter, the Value Line Investment Survey tracks 1,700 individual stocks across ninety different industries. Each week, the Value Line staff analysts update a batch of 130 stocks – how you receive the updates depends on whether you choose the web option or the print version.
Take a Breath and Remain Calm - Some Encouraging Words for Today's Markets
The stock market has been very volatile in recent months but this can represent a great opportunity for disciplined investors to dollar cost average into their favorite blue chip stocks.
Never Stop Contributing to Your 401k
Always contribute to your 401k even if you are in financial trouble. It may seem counterintuitive, but there are actually three reasons that continuing your regular contributions to your retirement accounts can protect you if things get really bad.
Patience is Not Only a Virtue ... It's Profitable
Buy and hold investing is incredibly important because it allows you to make money from the underlying business, not just trading pieces of paper in the stock market. Charlie Munger and Warren Buffett have both talked about the importance of buy and hold investing in their various speeches, letters, and talks.
When the Financial Media Gets It Wrong
Sometimes, the financial media just doesn't understand share repurchase programs. They constantly question the source the growth originates yet profit is profit.
Share Repurchase Plans Aren’t Enough
Sometimes, a share repurchase plan isn't enough. There are three tips to help you watch out for limitations on share repurchases.
Confusing Cash and Profits
Many investors make the mistake of confusing cash and profit. This can result in them focusing ont he wrong thing - higher sales - rather than that which can make a difference in their net worth - higher profits and return on investment.
Dow Jones Reaches 14,000 – Time to Buy, Sell, or Hold?
When should you sell stock? One historical investor suggested that the time to sell stock is when three conditions are met. To find out which of these three suggestions might help you discover when to sell stock and when to hold on or buy more.
If You Don't Know What You're Doing, Diversify!
In the words of famed economist John Maynard Keynes, diversification is insurance against ignorance. If you don't know what you are doing or have a limited financial background, you need to diversify your portfolio.