Value investing is Warren Buffett's bread and butter. He identifies "cheap" companies relative to its intrinsic value and purchases them. In this post I'd like to show you the steps I take to identify what value stocks are. Why Value Investing? Value stocks are generally referred to as stocks that are cheap and on sale compared to its actual value. Warren Buffett has been … [Read more...] about Value Investing – Step by Step Guide
Last month I received an e-mail from TD Ameritrade saying they were eliminating commission free ETFs. A lot of my friends and family have IRAs and 401Ks with TD and invest there. More importantly, everyone has a Vanguard Total Stock Market Fund. Whether VTI or VTSAX. I felt it was my duty to determine how this affected us. In addition, many of us invests in a number of other … [Read more...] about VTI or VTSAX
What happens when you combine the stock market and elections? Election years tend to shake up the market because of the contrasting business policies from each side. This year we had a Trump vs Hilary show down. Trump has been known to be very pro-business. A pro-business agenda may benefit the stock market and elections a lot. The benefits that big businesses will reap with … [Read more...] about Stock Market and Elections
Today we're going to calculate returns correctly I'm sure you're all off to a great new year as the markets have never been more promising and abundantly green! So let's figure out your returns! There are a few ways to calculate your returns. First the basics: If you're trying to see how much you made in one investment, the formula is simply: [(Ending Balance / … [Read more...] about Calculating Returns Correctly
With today's dip, is now the time to buy? The S&P took a dip today as the impending rate hike looms over our shoulder. The expected 25-basis-point increase the Feds keep mentioning may be happening on December 15th afterall. Currently the market expects it with a 76% probability. The truth is, rates were low for a very long time due to quantitative easing. Money flooded … [Read more...] about Should you wait to buy the dip?
There are several overriding truisms in the investment world, and one of them is truer than any other – Don’t put all your eggs in one basket. Although easier than it sounds, investors are subject to the greed and deliciousness that quick riches can get them. And they go and pour their entire life savings based on the hope that they can change their lives financially. For … [Read more...] about Diversify Your Portfolio