Investing Strategies and Styles
Investing is an intensely personal endeavor; no one strategy or style fits everyone. These resources will help you identify which type of investor you are and what may work best based upon your needs and goals.
Income Investing for Beginners - a 10 Part Guide to Successful Income Investing
In this special feature on income investing, you’re going to develop a better understanding of income investing, which types of assets might be considered appropriate for someone who wanted to follow an income investing philosophy, and the most common dangers that can derail an otherwise successful income investing portfolio. At the very least, you will be armed with some things to consider before contacting a broker or money manager.
In this special feature on income investing, you’re going to develop a better understanding of income investing, which types of assets might be considered appropriate for someone who wanted to follow an income investing philosophy, and the most common dangers that can derail an otherwise successful income investing portfolio. At the very least, you will be armed with some things to consider before contacting a broker or money manager.
The Death of Buy and Hold Investing?
Some market commentators and professional money managers have declared the death of buy and hold investing. After considering the prospect of such a grand - and foolish - statement, given the long-term record, I wrote out a response during a recent trip to a meeting with a precious metals company. Is buy and hold dead? I don't think so.
Some market commentators and professional money managers have declared the death of buy and hold investing. After considering the prospect of such a grand - and foolish - statement, given the long-term record, I wrote out a response during a recent trip to a meeting with a precious metals company. Is buy and hold dead? I don't think so.
Risk Adjusted Rate of Return
Did you know that your risk adjusted rate of return differs from your absolute rate of return depending on your financial resources, knowledge, opportunity cost, tax situation, and more? In this resource, you'll learn how to calculate your risk adjusted rate of return and how the concept can help you weed out artificially high potential investment gains, avoiding disaster.
Did you know that your risk adjusted rate of return differs from your absolute rate of return depending on your financial resources, knowledge, opportunity cost, tax situation, and more? In this resource, you'll learn how to calculate your risk adjusted rate of return and how the concept can help you weed out artificially high potential investment gains, avoiding disaster.
The Types of Companies to Invest In During a Crisis
During this crisis, access to funding is a problem because banks are in desperate need of capital and can’t take risks that in ordinary times would be prudent. As a result, companies that otherwise may have survived might not make it through if conditions continue to deteriorate for several quarters or even years. The intelligent investor is likely going to want to focus on companies that boast several characteristics.
During this crisis, access to funding is a problem because banks are in desperate need of capital and can’t take risks that in ordinary times would be prudent. As a result, companies that otherwise may have survived might not make it through if conditions continue to deteriorate for several quarters or even years. The intelligent investor is likely going to want to focus on companies that boast several characteristics.
The Six Different Asset Types
At my business, Kennon Green Enterprises, we use a hierarchy of capital allocation that divides assets into six categories. These assets are then broken down into subcategories and used for each and everyone of our capital budgeting decisions - from office supplies to investments in marketable securities. This resource explains our capital allocation model, how we developed it, and examples of each type of asset.
At my business, Kennon Green Enterprises, we use a hierarchy of capital allocation that divides assets into six categories. These assets are then broken down into subcategories and used for each and everyone of our capital budgeting decisions - from office supplies to investments in marketable securities. This resource explains our capital allocation model, how we developed it, and examples of each type of asset.
5 Secrets to Making Money During the Storm on Wall Street
The key to successful investing is consistency. If you are buying shares of good businesses, that generate real profits, attractive returns on equity, have low to moderate debt to equity ratios, improving gross profit margins, a shareholder-friendly management, and at least some franchise value, over long periods of time, history has shown for generations that you can get very rich, building substantial wealth for you and your family.
The key to successful investing is consistency. If you are buying shares of good businesses, that generate real profits, attractive returns on equity, have low to moderate debt to equity ratios, improving gross profit margins, a shareholder-friendly management, and at least some franchise value, over long periods of time, history has shown for generations that you can get very rich, building substantial wealth for you and your family.
The Key to Finding Stocks that Will Make You Rich? Focus on Return on Equity
Over long periods of time, the performance of a stock most closely correlates with the return earned on shareholders’ equity. That's why investors that want to do well should focus on return on equity or ROE combined with a reasonable price.
Over long periods of time, the performance of a stock most closely correlates with the return earned on shareholders’ equity. That's why investors that want to do well should focus on return on equity or ROE combined with a reasonable price.
Buy and Holding Investing Strategy
Buy and hold investing can make a lot of sense because it allows an investor to make money from the underlying business, not just fluctuations in the stock market. Some of the world's greatest investors have made their fortune by buy and hold investing.
Buy and hold investing can make a lot of sense because it allows an investor to make money from the underlying business, not just fluctuations in the stock market. Some of the world's greatest investors have made their fortune by buy and hold investing.
Getting Rich by Investing in an Excellent Business
At the annual meeting in 1996, Warren Buffett and Charlie Munger commented that, “If you find three wonderful businesses in your life, you’ll get very rich.” At the meeting one year later, he said, “The single biggest recurring mistake I’ve made has been my reluctance to pay up for outstanding businesses.” As a new investor, you may here this and wonder, “Yes, Joshua, but what is it that actually makes a company an excellent business?”
At the annual meeting in 1996, Warren Buffett and Charlie Munger commented that, “If you find three wonderful businesses in your life, you’ll get very rich.” At the meeting one year later, he said, “The single biggest recurring mistake I’ve made has been my reluctance to pay up for outstanding businesses.” As a new investor, you may here this and wonder, “Yes, Joshua, but what is it that actually makes a company an excellent business?”
Ten Part Guide to Beating the Market
Truly successful investors have certain traits and characteristics that allow them a better chance of generating higher after-tax returns than the broader stock market indices such as the S&P 500 and the Dow Jones Industrial Average thus beating the market. How can an average investor beat the market without taking on additional risk? For tips and tricks about market beating returns, this step by step guide could help.
Truly successful investors have certain traits and characteristics that allow them a better chance of generating higher after-tax returns than the broader stock market indices such as the S&P 500 and the Dow Jones Industrial Average thus beating the market. How can an average investor beat the market without taking on additional risk? For tips and tricks about market beating returns, this step by step guide could help.
The Concept of Cash Carry
Imagine that you know you are going to acquire shares of a company such as U.S. Bancorp or Wells Fargo (both of which I own at the time of this article.) You are due for some major cash windfall such as a bonus, inheritance, or proceeds from the sale of real estate. Find out how cash carry can help you buy your stock position.
Imagine that you know you are going to acquire shares of a company such as U.S. Bancorp or Wells Fargo (both of which I own at the time of this article.) You are due for some major cash windfall such as a bonus, inheritance, or proceeds from the sale of real estate. Find out how cash carry can help you buy your stock position.
Defensive Investing
In light of the recent volatility on Wall Street, many investors seem concerned about their portfolios. Discover ways to build a defensive portfolio for volatile markets in this investing for beginners article.
In light of the recent volatility on Wall Street, many investors seem concerned about their portfolios. Discover ways to build a defensive portfolio for volatile markets in this investing for beginners article.
Making Money in Bad Companies
Sometimes, you can make more money by buying the least attractive stock in a particular industry if you believe the sector is due for a turnaround. Although it is counterintuitive, a little bit of simple math can show why it makes perfect sense and can leave the shrewd analyst with a much fatter pocketbook. These types of operations are for investors that have already built their complete portfolio and are on financially sound footing.
Sometimes, you can make more money by buying the least attractive stock in a particular industry if you believe the sector is due for a turnaround. Although it is counterintuitive, a little bit of simple math can show why it makes perfect sense and can leave the shrewd analyst with a much fatter pocketbook. These types of operations are for investors that have already built their complete portfolio and are on financially sound footing.
7 Keys to Successful Investing - Basic Principles for Superior Results
Discover the 7 keys to successful investing. These basic principles can help you generate superior results for your portfolio.
Discover the 7 keys to successful investing. These basic principles can help you generate superior results for your portfolio.
Invest in What You Know
Investing in companies you are familiar with and understand is one of the keys to success in the stock market. Often, a trip to the mall or shopping center can yield investment ideas.
Investing in companies you are familiar with and understand is one of the keys to success in the stock market. Often, a trip to the mall or shopping center can yield investment ideas.
Rationality - The Investor’s Secret Weapon
Rationality is the silver bullet of intelligent investing. It allows you to make cold, logical, and unemotional decisions that will help your investment portfolio and grow your bottom line.
Rationality is the silver bullet of intelligent investing. It allows you to make cold, logical, and unemotional decisions that will help your investment portfolio and grow your bottom line.
Investing in Your Employer’s Stock
Should you invest in your company's or employer's common stock or is it a bad idea to risk your retirement? Discover possible solutions and answers in this investment article.
Should you invest in your company's or employer's common stock or is it a bad idea to risk your retirement? Discover possible solutions and answers in this investment article.
7 Signs of a Shareholder Friendly Management
Good corporate governance is important for your portfolio. When you are in business with people who are interesting in making sure you, the shareholder, get a fair shake, you are likely to have better results. Here are seven things you can look for in an owner-oriented enterprise.
Good corporate governance is important for your portfolio. When you are in business with people who are interesting in making sure you, the shareholder, get a fair shake, you are likely to have better results. Here are seven things you can look for in an owner-oriented enterprise.
Past Performance is No Guarantee of Future Results
Almost all investment literature warns you that past performance is no guarantee of future results. Many investors would do well to heed this advice instead of chasing hot sectors and stocks.
Almost all investment literature warns you that past performance is no guarantee of future results. Many investors would do well to heed this advice instead of chasing hot sectors and stocks.
Spin-Offs vs. Sale of Subsidiaries
Are tax-free spin-offs better for your portfolio that the sale of a subsidiary or subsidiaries for cash? What are the tax effects of spin-offs? Find out the answers in this investing article.
Are tax-free spin-offs better for your portfolio that the sale of a subsidiary or subsidiaries for cash? What are the tax effects of spin-offs? Find out the answers in this investing article.
Business-Like Investing - Thinking like an Owner
Investing in equities is, quite literally, the act of buying businesses. In this article, we are going to take real life business lessons and apply them to your investment portfolio. You’ll examine common mistakes entrepreneurs make and ways to avoid them in your investments.
Investing in equities is, quite literally, the act of buying businesses. In this article, we are going to take real life business lessons and apply them to your investment portfolio. You’ll examine common mistakes entrepreneurs make and ways to avoid them in your investments.
The ABC’s of Risk Arbitrage - Profiting from Corporate Mergers, Acquisitions and Liquidations
Arbitrage (sometimes called “risk arbitrage” or “merger arbitrage”) is a special type of investment operation that is meant to generate profit with little or no risk. This article discusses Benjamin Graham's formula for evaluating arbitrage operations as well as how arbitrage opportunities come into being on the security markets.
Arbitrage (sometimes called “risk arbitrage” or “merger arbitrage”) is a special type of investment operation that is meant to generate profit with little or no risk. This article discusses Benjamin Graham's formula for evaluating arbitrage operations as well as how arbitrage opportunities come into being on the security markets.
The Investor's Manifesto
All true investors exhibit certain traits, beliefs and characteristics. This is a compilation of those attributes I call the investor's manifesto.
All true investors exhibit certain traits, beliefs and characteristics. This is a compilation of those attributes I call the investor's manifesto.
Margin 101: Road to Riches or Playing with Fire?
Margin can be a powerful tool that both makes and breaks great fortunes. Is it same and something you should consider? Find out for yourself in our Margin 101 Article.
Margin can be a powerful tool that both makes and breaks great fortunes. Is it same and something you should consider? Find out for yourself in our Margin 101 Article.
Shorting Stock, The Basics of
Some traders engage in a practice known as shorting stock, which allows them to profit from falling stock prices. This article takes a closer look at the strategy and the rules that must be followed.
Some traders engage in a practice known as shorting stock, which allows them to profit from falling stock prices. This article takes a closer look at the strategy and the rules that must be followed.