In this post, we’ll break down the steps involved in building an investment thesis for a company in which you are interested. It Starts With an Observation All investments – good and bad – start with an idea, or an observation. I’ve referred to the Peter Lynch story about seeing L’eggs eggs all over the […]
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Dividend Stocks are a compelling investment option. They have the potential for capital appreciation, and they also make regular dividend payments to shareholders. You can see more detail about stocks and dividends in my post on stocks, but to give a quick recap, stock ownership is ownership of shares of a company. Companies that are
You’ve decided to invest in companies and you’re buying stocks. Congratulations. How do you measure stock performance? This is a really tough question. Deciding to make the leap from mutual funds and ETFs to directly investing in companies is a big decision. It’s a decision to rely on your abilities over an index or fund
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In an earlier post on Stocks, I talked about trading v. investing. To me, investing is researching different businesses and choosing to invest in those that I think will pay off in the long-run. I see trading as an activity in which one tries to move quickly in and out of different securities, trying to
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Today was a rough day in the market. They are more common than you might think. I typically dislike the constant coverage of what the market is doing, and investing experts who are happy to tell you why the market tanked today. Where were they this morning? I’ve never seen a pre-market headline that told
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Time is the secret weapon in building wealth. For those who only read the 1st paragraph of an article, I wanted to get this out there first. So there you have it. Let’s talk about why. Sylvia In preparing for a personal finance class I was teaching a few years back, I came across an
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Bonds are a key part of a diversified investment portfolio. In this post we’ll talk about what a bond is, how it works and the role it plays in your portfolio. A bond is a fixed income security, which means it is a security that has a fixed duration and a fixed interest rate. Fixed
If you read only 1 article on this site, please choose this one. Compounding is the magic that will enable you to grow your wealth over time. Understanding how compounding works will help you to envision how your wealth can grow over time. Knowing this will help you stick with a regular saving and investing
Today, I grudgingly sold 6 companies that I’ve owned for several years. All 6 companies had lost money for me. They were on an up trend at one point in time, with optimistic growth projections and a rising stock price. A few had healthy dividends as well so I was earning some income while expecting
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Asset Allocation: Equity, Fixed Income & Cash – What are they and what role do each of them play in your portfolio. Read on to find out. Let’s start by introducing a new term: Asset Class. In order to understand and manage your investment portfolio, it helps to break our investments down into categories. Asset
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