Category: Learning to Invest
The analysis published under this category are as follows.
Tuesday, July 17, 2012
Forecasting Future Earnings The Key to Stock Market Returns / InvestorEducation / Learning to Invest
By: Charles_Carnevale
In Part 1 and Part 2 of this three-part series, we established the basic principles of valuation and provided evidence that backs those principles up. Then we demonstrated that valuation is a function of soundness based on the current earnings yield that any given level of earnings offers you. From there, we illustrated how the future rate of earnings growth, in conjunction with fair valuation, will be the primary determinants of future returns.
Tuesday, July 10, 2012
Investors Learn to Think Nonlinearly / InvestorEducation / Learning to Invest
By: Frank_Holmes
Is your portfolio limited by linear thinking? We believe so.
Many linear thinkers believe that to solve a problem, you need to follow a simple, logical path, a step-by-step sequence involving two variables. One and one is always two. Here's a diagram depicting the progression.
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Saturday, June 30, 2012
How to Know What Rate of Return to Expect from your Stocks: Part 1 / InvestorEducation / Learning to Invest
By: Charles_Carnevale
We believe there are two critical attributes that the prudent investor should consider before investing in a company (stock). Furthermore, these same two attributes can be used to calculate a reasonable expectation of the future return the stock is capable of generating on their behalf. These two attributes are valuation and the rate of change of earnings growth. Valuation indicates whether or not the company's current earnings power compensates you for the risk you take, while the company's future rate of change of earnings growth will be the driver of future returns.
Monday, June 18, 2012
Are Stocks Underperforming the Index? Case Study - Indonesia / InvestorEducation / Learning to Invest
By: Sam_Chee_Kong
There is always a believe that by holding Defensive Stocks and Blue Chips will enable you to weather the storm during a Financial Crisis. What we will be doing now is to build a case on whether holding on to stocks will outperform the Market Index. To do this we will use the Global Financial Crisis in 2008 as a backdrop in our study. We will be using the Jakarta Stock Exchange as a Case Study and our study will be based on the following assumptions.
- Period of comparison is from the 2007 High to Current value.
- Stocks in study will be the 10 largest listed companies in the JSX as of 2010
- Stock split and bonus are taken into account
Sunday, June 17, 2012
Investor Lessons to Learn from the Facebook Fiasco / InvestorEducation / Learning to Invest
By: Casey_Research
Doug Casey, Casey Research writes:
We have been accused at times - rightfully so - of being largely focused on the trials and tribulations of the newfound political economy. Given its place as one of the biggest contributing factors to the performance of the investment markets these days, it makes sense. However, there is one area of the economy that continues to grow, largely unabated by the foolish risk-taking of investment banks and the constant flow of bailouts and "easing" - it's the technology sector. This week, I had a chance to sit down with Doug Casey to get his thoughts on a subject that has long been near and dear to him as an investor and as a person, starting with the most talked about tech story of the past month, Facebook.
Monday, June 04, 2012
The Tragic Investing Tale of "Big Al" Clifton / InvestorEducation / Learning to Invest
By: Money_Morning
By William Patalon III writes: One of our core messages here at Money Morning - and one that we tend to repeat over and over - is that it is crucial for you to take control of your own financial destiny.
To underscore just how important this is, allow me to share a personal story I guarantee will drive this point home.
I've massaged the biographical details on this one a bit to protect the folks who are involved. But the rest of the facts are true.
Friday, May 11, 2012
Is "Mastering the Gap" the new suckers trap? / InvestorEducation / Learning to Invest
By: Ron_Jaenisch
My email box is full offers for webinars that will teach me to master the gap. Some may provide useful information.
Could buying just because prices have filled the gap be a trap for uneducated investor that generates frustration and losses?
Thursday, May 03, 2012
Stock Market Turning Points: Has Wall Street Ever Warned You in Time? / InvestorEducation / Learning to Invest
By: EWI
In the play "The Secret to Freedom," Pulitzer prize writer Archibald MacLeish had a character say this:
The only thing about a man that is a man is his mind. Everything else you can find in a pig or a horse.Read full article... Read full article...
Tuesday, May 01, 2012
How to Invest Like the Market Oracle of Omaha, Warren Buffetts Rules / InvestorEducation / Learning to Invest
By: Money_Morning
Patrick Vail writes:
For months, the Obama administration has been using Berkshire Hathaway Inc. (BRK.A, BRK.B) Chairman and CEO Warren Buffett's considerable name recognition to try to change how America's top earners are taxed.
The fate of the so-called "Buffett Rule," which would apply a minimum tax of 30% to individuals making more than $1 million a year, still has yet to be determined. Chalk it up to politics as usual.
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Sunday, April 29, 2012
Why "Boring" Businesses Are More Profitable Than "Exciting" Ones / InvestorEducation / Learning to Invest
By: DailyWealth
Dan Ferris writes: This spring, a reader wrote to me with a complaint...
He was irritated with my coverage of "World Dominating Dividend Grower" stocks (WDDGs).
These stocks are too "boring," he said. Why pay to hear how these companies continue to do the same darn thing day in and day out?
Thursday, April 26, 2012
Investing Advice, Five Ways to Conquer Gambler's Ruin / InvestorEducation / Learning to Invest
By: Money_Morning
Keith Fitz-Gerald writes:
The relationship between investing and profits seems simple enough. You buy low, sell high and your portfolio grows -- or so goes the story.
In reality though, success comes down to something called "Gambler's Ruin."
Most investors have never heard the term but understanding its implications can mean the difference between heartache and success, especially now.
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Friday, April 20, 2012
Investing Diversification: Is It All It's Cracked Up To Be? / InvestorEducation / Learning to Invest
By: Charles_Carnevale
Investing Diversification: Is It All It's Cracked Up To Be?There's an old cliché about real estate investing that states that the three cardinal rules are: location- location- location. Clever pundits have borrowed upon this refrain and glibly state that the three most important or cardinal rules of investing are: diversify- diversify- diversify. However, careful analysis will reveal that diversification is a multifaceted concept that has different meanings, benefits and even risks depending on how it's used and what its ultimate purpose is. Therefore, my goal is to examine this ubiquitous investing concept from various angles and perspectives.
Thursday, April 19, 2012
Are Share Rollbacks: Good or Bad for Investors / InvestorEducation / Learning to Invest
By: Dudley_Baker
As a general rule, we hate to see an announcement of a share rollback, however, there exceptions which we cover below. Investors should always be aware that if a company has, say over 150 million shares outstanding, in our opinion, it is a potential candidate for a rollback and the announcement should not come as a surprise.
Tuesday, April 17, 2012
A True Stock Investor’s Most Important Performance Measurement / InvestorEducation / Learning to Invest
By: Charles_Carnevale
Although most people either fail to realize it, or simply refused to accept it, every stock portfolio has two separate and distinct performances. The first, and in my opinion, the least important, is stock price movement. If you buy a stock at $10 a share and it goes to $15 a share it’s a good stock. In contrast, if you buy a stock at $15 a share and it goes to$10 a share it’s a bad stock. Meanwhile, the operating performance (earnings results) is mostly ignored while often irrational price gyrations are excessively fixated upon. Of course, I understand why people behave this way, but I still can’t help but be very frustrated by this behavior.
Saturday, April 07, 2012
It's Time to Change the Way You Think About the Stock Market / InvestorEducation / Learning to Invest
By: DailyWealth
The Daily Crux: What does it mean to value a stock as a business? How does it differ from the way most investors think about investing?
Friday, April 06, 2012
Don’t Look to the Stock Market for Advice / Stock-Markets / Learning to Invest
By: Vitaliy_Katsenelson
In the classic book The Wizard of Oz, the Wizard decreed that everyone who entered the Emerald City wear green-tinted glasses. Visitors and citizens were told that this was to protect them from the “brightness and glory.” In truth, though, the Wizard had lost his mojo and become a run-of-the-mill charlatan. There was no brightness and glory, just an ordinary city built out of stone and glass.
Tuesday, April 03, 2012
The Best Exit Strategy for Any Investment / InvestorEducation / Learning to Invest
By: DailyWealth
So... when do YOU sell?
What? You don't know? How could you not have any kind of plan?
Let's say you hold shares of Apple today at over $600 a share. You bought them a couple months ago below $400 a share. When is the right time to sell?
Monday, March 26, 2012
How to Think Like a Mad Man, Find your Edge & Risk Little for Lots / InvestorEducation / Learning to Invest
By: Aftab_Singh
The enigma that is eccentricity can be unravelled by grasping of this single statement; that which you perceive is both a matter of the object of your perception (in this case; the eccentric person) and your apparatus of perception. Eccentricity, then, is as much a quirk of the popular mind as it is of a particular person. So with the assumption that you seek creativeness and intrigue — here’s how to think eccentrically, find your edge and risk little for lots.
Friday, February 10, 2012
The Investment Lesson Behind the Kodak Bankruptcy / Companies / Learning to Invest
By: Money_Morning
Martin Hutchinson writes:
The recent bankruptcy of Eastman Kodak reminds investors they don't make companies like they used to.
Founded in 1892, Kodak shows that very few of these 19th century giants exist anymore.
Companies, like washing machines, just don't have the staying power they used to. Even the largest companies these days are unlikely to outlast a 40-year investing career.
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Wednesday, February 08, 2012
Do Low Interest Rates Power Stock Markets Higher? / Stock-Markets / Learning to Invest
By: EWI
Back in the day, one of the first things I "learned" about investing was that low or declining interest rates are good for stock prices.
I've since had to "unlearn" this.
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