The Go-To Place For Investment Advice

This archive highlights all of the articles posted on investing, in chronological order. If you want just the highlights of the best investing articles, check out our Investing 101 page for more information.

Investing Tip #110: Focus on the Future

In investing, it’s what happens in the future that matters most. Though current and past data are relevant for any meaningful analysis, your decision has to based on future potential rather than on what has already happened in the past. If you want to learn more check out these resources: Cash Cow Stocks: Great for [...]

The Five Worst IRA Mistakes Made Everyday

Individual retirement accounts (IRAs) are great vehicles for investing in for retirement. However, as with anything the government creates, they don’t always make it easy to navigate the ins-and-outs of the product. If you currently have an IRA, or are thinking about starting to invest in an IRA, make sure that you don’t do these [...]

How to Invest in Companies Outside the USA

Our world is becoming more and more globalized each day. In other words, there is more international trading, more foreign transactions, and simply more interconnectivity between business and countries that are thousands of miles from each other. It is definitely an exciting time to be alive because with this globalization comes many opportunities that did [...]

Investing Tip #106: Buy Companies with a High Sustainable Growth Rate

Buy companies with high sustainable growth rate. It is the reasonable growth rate that a firm can sustain and can finance using internally generated assets and without additional debt or equity. Its growth based on internal resource generation and the stock records consistent growth. If you want to learn more check out these resources: Key [...]

Investing Tip #105: Park Surplus Funds in Short Term Money Market Securities

The money market securities mainly include short-term fixed income instruments, treasuries and money market funds. Although they do not offer high returns, you still earn more compared a savings account. You may keep your money parked here until you get better medium term or long term investment options. If you want to learn more check out [...]

Investing Tip #104: Avoid Complex Investment Products

Many companies and funds come out with innovative financial products which are complex to understand. Analyze them meticulously. Before you invest in anything, you need to understand the risk and reward involved. If you want to learn more check out these resources: The Riskiest Investments You Can Make How to Keep Track of Your Portfolio, [...]

Investing Tip #103: Look for No Load Mutual Funds

You don’t have to pay a front-end or back-end load when purchasing or redeeming the mutual funds issued under the SEC rule 12b-1.  The mutual fund charges only an annual marketing or distribution fee as an operational expense @ 0.25-1% of the current value of the investment. To get the most out of your investments [...]

Investing Tip #102: Don’t Invest Based on Big Advertisements

Many companies promote IPOs or new funds through aggressive marketing tactics. Always do your own research before buying any financial products. Brokers and agents generally push higher-commission products. If you want to learn more check out these resources: 4 Easy Steps to Grow Your Money How to Use SWOT Analysis for Your Investments

Investing Tip #101: Keep Your Credit Score High

The banks check your credit score while approving you a personal, car or home loan or a new credit card. Your credit rating scores are maintained and updated by Credit Information Companies. Your score depends on your credit history showing timely payment of loans, credit card dues, telephone bills etc. Late payments and defaults drag [...]

Warren Buffett’s Top 5 Tips For Investing

Warren Buffett is one of the best investors in history, and is widely regarded as the “Oracle of Omaha”.  Buffett is a value investor at heart, but he also shares a lot of other insights during shareholder meetings and in his annual letter to shareholders.  As such, it is pretty easy to understand Warren Buffett’s [...]

Investing Tip #100: Invest only in Companies with Good Corporate Governance

Look for companies with a reputation of high ethical business conduct. A good corporate governance policy safeguards stockholders and stakeholders interest. If companies are well governed, they will usually outperform other companies. Poor corporate governance weakens a company’s potential and at worst can pave the way for financial difficulties and even fraud. You should see [...]

4 Finance Tips I Wish I Knew at 18

Man, sometimes don’t you wish you could go back in time and change something in your life – even your financial life?  Sometimes I wish I could go back to that time right after high school graduation and re-think some of the financial decisions I made.  While none of them have been detrimental to my [...]

Investing Tip #99: Buy a Company that Uses Resources Efficiently

Check how efficiently the management is using its financial resources. This is reflected in Return on Equity and Return on Capital. They measure how efficiently a company uses its capital as well as reinvested earnings to generate earnings. Invest in efficient companies. If you want to learn more check out these resources: Beyond Stock: Creative Ways [...]

Investing Tip #98: Look for Low Price Earnings Growth Ratio

Price Earnings Growth ratio is the P/E ratio divided by the company’s growth rate. Stocks that have a lower P/E, but high growth rate, will have lower PEG. This ratio indicates how low-priced the stock is in relation to its earnings growth. Lower PEG means the stock is undervalued. Pick an undervalued stock with PEG [...]

Investing Tip #96: Keep Away When the Market is Volatile

When the market is volatile, the price of shares fluctuate widely. It is difficult to ascertain the right price of a stock in a volatile market. It is unsafe to either buy or sell during this period. Wait and let the market stabilize. Volatility generally remains for a short period of time. If you want to [...]