Some financial advisors advocate a buy and hold forever strategy for individual stocks.
They cite such successful investors as Warren Buffett, Benjamin Graham, and John Templeton as staunch believers in a buy and hold forever approach.
Or financial experts tout articles like “The 7 Best Stocks for a Lifetime”.
As a good friend whose birthday is this week would put it, “Complete foolishness, I say.”
And she would be right. (more…)
Everyone wants to know the best stocks to invest in for 2012.
I know I do.
So what are the top stock picks for next year?
I am just a single person tooling away in the tundra of Western Canada, so who am I to choose.
Instead, I shall bring you the absolutely best 10 stocks for 2012 courtesy of the professionals who do this for a living. As such, these 10 must be the top performing picks over the next 12 months.
No thanks needed. I am just trying to help you succeed in wealth creation. (more…)
Another ratio used by value investors, as well as seekers of cash flow, is the dividend yield.
Whereas value investors seek companies with relatively low price-to-earnings (P/E) and price-to-book (P/B) ratios, they desire companies with high dividend yields.
Today we will look at the dividend yield. (more…)
Another common analytical calculation is the price-to-book (P/B) ratio.
This is popular among value investors.
While price-to-earnings considers a company’s future earnings potential as a way to determine share price, P/B incorporates what the company owns.
Not a ratio that I find very useful, but many others do, so you shall not suffer for my biases.
We will cover how to calculate and use P/B ratios, followed by limitations in the ratio’s effectiveness. Then I will show you how to make the P/B ratio a little more practical. (more…)
Within equity analysis, the price-to earnings ratio is the most common calculation.
Key to any analytical style, it is one of the cornerstones for value investing.
Today we will look at the concept and its uses. We will also review some of the limitations of the price-to-earnings ratio. (more…)
Equities are often viewed through the prism of being either value or growth stocks.
This is especially true when reviewing different investment styles for equity funds.
Today we will take a look at value investing. (more…)
A company’s market capitalization (commonly shortened to “cap”) is found by multiplying the current share price by the number of shares outstanding.
Market capitalization is useful in comparing companies of similar size.
It is also used as a tool by mutual funds when determining investment style.
So what are the different market capitalization segments? (more…)
Most investors trade in shares of individual companies.
The main method for small investors (i.e. you and me) is to buy and sell shares on the open market through the use of a brokerage account.
However, you can invest in public companies using other means as well. (more…)
Many investors will go their entire lives without purchasing individual bonds, preferred shares, or even cash equivalents. Instead, they will utilize funds for these asset classes.
Most, if not all investors though, will buy and sell common shares of individual companies.
I am not sure that buying individual stocks is the best investment strategy, but almost all of you will trade specific stocks during your life.
So we will spend some time reviewing common stock.
Today we will look at a few key characteristics of common shares. (more…)
Originally, I intended to discuss considerations when investing in fixed income.
But I decided to go skip that for now and finish up with our discussion of asset classes.
With apologies, here is a look at equities.
Equity is the final major investment category, along with cash equivalents and fixed income.
Today we will review the concept of equity, in general and in relation to companies. (more…)
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