More Posts by Robert Farrington

Investing Tip #85: Avoid Over Diversified Companies

Avoid investing in companies diversifying beyond their core competence. Such companies try to sustain growth through aggressive acquisitions. The acquisitions may dilute your shareholdings if acquisition cost is paid with the issuing of new stocks. If you want to learn more check out these resources: How to Turn Down $3 Billion at 23 Years Old 4 [...]

How Much Student Loan Debt Students Have and How Much They Make

I’m really excited to announce a new initiative here at The College Investor.  It’s something that I’ve always been curious about, and I know a lot (and I’m talking a LOT), of readers have emailed me about.  However, I never quite knew the best way to go about figuring this out. Well, today, I’m giving [...]

Investing Tip #84: Stay Away from Hot Stocks in the Hottest Industry

Hot stocks and hot industries are constantly in the news. And everyone talks about them. Peter Lynch tells, “Hot stocks go up fast, usually out of sight of its actual value, but they fall just as quickly”.  Hot stocks are a dime a dozen. If you’re investing for the long term do your homework and go [...]

Investing Tip#83: Read Benjamin Graham’s “Security Analysis”

The classic book “Security Analysis” remains as relevant today as when first published 80 years ago in 1934. It contains teachings of Benjamin Graham, “the father of value investing,” and is applicable to a wide diversity of market conditions, countries, and asset classes. It shows you a road map for investing to follow. If you [...]

Investing Tip #82: Read Peter Lynch’s Book “One Up On Wall Street”

The book “One Up On Wall Street” ranks as one of the best investment primers ever for small investors. Peter Lynch guides you on developing strategies in buying, selling and holding equities with a preference for value investing in companies that have sound fundamentals.  His investing philosophy generally resembles the value investing and is largely [...]

4 Things You Need to Protect Your Finances

In an earlier post, we conducted a reader poll to find out what you would consider a financial disaster. The situation mentioned most often was job loss coupled with either the inability to pay bills, or having to be the sole breadwinner as the result of someone else’s job loss. While job loss is definitely a [...]

Investing Tip #81: Use Graham’s “Margin of Safety”

Success of value investing largely depends on the correct estimation of the intrinsic value of the stock. Graham’s margin of safety, the difference between a stock’s price and its intrinsic value, provides you cushion against estimation errors. The farther the purchase price is below its intrinsic value, the greater the margin of safety against future [...]

Investing Tip #80: Use Graham’s Magic Multiple

You can use Graham’s Magic multiple to pick stocks. This multiple is just the multiplication of the two most commonly used valuation ratios, PE and PB. Choose stocks with Graham’s multiple that are less than 22.5. If you want to learn more check out these resources: The 5 Minute Summer Portfolio Jump Start The Value [...]

How Student Loans Are Different In The UK vs. The US

You’re probably not surprised that UK students get students loans, just like American students.  But what you may be surprised at is how their system for paying for college is much more efficient, resulting in lower overall education expenses and less burden for student loan borrowers after graduation. Let’s take a basic look at how [...]

Microsoft Office 365 is a Student’s Best Companion

Brought to you by Microsoft Office Whether you’re preparing for college this fall or a current student, Office 365 makes for a great companion to help you study smarter, stay more organized and manage your social life efficiently. With the ability to access all of your information whenever and wherever, you’ll always be set up [...]

How Video Conferencing Helps People in Rural Communities

Video conferencing has opened the digital doorway to information and services for people living in rural communities in the U.S. and around the globe. From virtual learning where schoolchildren talk with foreign students in real time, to medical specialists helping people in need—video conferencing bridges the gap, bringing people and services together. Using innovative technology [...]

Investing Tip #77: Buy Stock at a Lower Price than its Actual Value

Peter Lynch warns that if you purchase grossly overpriced stock, you won’t make any money even if everything goes right. The key to successful investing is to find the intrinsic values of the stocks and then pick only the ones that are quoting at significant discounts to these values. You buy only when you get [...]

Growing Up On Food Stamps To Millionaire Helping Other Families

Today I have the pleasure of sitting down with Travis Freeman, who is the President of Four Seasons Financial Education.  He is also a Certified Financial Planner.  But that’s Travis today.  He didn’t grow up with money, and his role models for money were his parents who struggled to get by.  But he didn’t let [...]

Investing Tip #75: Prefer Bonds with High Ratings

The rating companies, such as Moody’s, Standard & Poor’s and Fitch, provide ratings to the bond issues. The ratings that are dependent on the credibility, stability and financial health of the company, help you to determine the risk associated with the Bond. Buy only investment grade bonds having ratings from Aaa/AAA to Baa/BBB. Avoid high-yield [...]