Warren Buffet has done exceptionally well as an investor and businessman over the long run.
That said, I do not believe that the average investor can emulate Buffet’s approach.
But Buffet, in his folksy Nebraskan way, does offer some great advice.
This linked article from Business Insider shares 15 of his top short snappers.
A few thoughts from my side on some of the points Buffet makes. (more…)
Following a growth strategy is another common method of investing in equities. You will also see many mutual funds that utilize this style.
Today we will take a look at growth investing.
What it is. How it compares to value investing. And some areas to watch out for when trading in growth stocks. (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…)
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