Category Archives: Investment Education
Bank of America: I Don’t Want to Buy it if You Don’t Want to Buy it
Do you remember a time when you were a child and and you wanted to do something but your mom prevented you from doing it? Then, you responded, “Mom, but John is doing it. Why can’t I do it?” Your mother responded, “If John jumped off of the top of a building, would you follow [...]
Warren Buffett's Rules Can Be Confusing
If you have ever read books about Warren Buffett, you are likely to be familiar with his two rules: Rule #1: Never Lose Money Rule #2: Never Forget Rule Number One However, these rules can be confusing, especially to beginning investors. Recently, I received an e-mail from a beginning value investor who bought a particular [...]
Common versus Preferred Stock: What's the Difference?
When you hear someone talking about investing in stocks, he or she is usually referring to investing in common stocks. However, companies offer two classes of stock: common and preferred. While most investors are pretty knowledgeable about common stocks, they are not well-informed when it comes to preferred stocks. The main similarity between common stocks [...]
Former Employees Can Help You Find a Winner
Knowing what others don’t know about particular companies can give you an edge. However, the majority of investors rely solely on what a company’s top executives provide to them in annual reports and proxy documents. If you are serious about finding winners, speaking with former employees can reveal information that is not written in any [...]
How to quickly discover who is buying or selling your stock
Institutional investment managers with at least $100 million under management are required by law to file Form 13F. While you can search and retrieve Form 13F filings by using the SEC’s EDGAR database, another useful website that can save you lots of time is Whale Wisdom.
Speculator – A Person Who Thinks He or She is an Investor
The majority of investors in the stock market do not realize that they are speculators and think that they are investors. When exposed to investing in a businesslike fashion, they might agree that it makes sense to treat stocks as pieces of businesses and to buy them only when getting a deal, which means purchasing [...]
Do You Speak the Language of Business?
“Jeśli rozwiniesz swoje umiejętności inwestycyjne i jeśli inwestujesz mądrze, to pozwoli Ci to w przyszłości żyć lepiej i zapewnisz sobie w ten sposób godną emeryturę na przyszłość. Niestety większość ludzi nie ma ochoty uczyć się jak inwestować swoje pieniądze, więc dlatego ufają na ślepo tak zwanym profesionalistom, którzy są ubrani w drogie i eleganckie garnitury, [...]
Why Isn't Value Investing More Popular?
Even though there are many extremely successful value investors, few money managers and individual investors choose to follow the value investing strategy. They don’t follow it because it doesn’t work all the time, meaning that investment returns are not positive every day, every quarter, and every year. Because it is a long-term strategy, investors do [...]
So What Is This "Enterprise Value?"
Many investors rely on many different metrics such as the P/E ratio, price-to-book ratio, and price-to-sales ratio to determine whether a company is trading at a cheap price. Relying on these metrics may be misleading because it may make you buy something that is not as cheap as you previously thought it was, or it [...]
