The Value Investing Cheat Sheet

Value investing is the investing idea that you can buy a company that is “under-valued” relative to its true value.  The reason that its stock is undervalued relative to its fundamentals could be market movements or other outside trends.  However, you want to make sure that you avoid value traps, which could mean the company [...]

Investing Tip #54: Have Realistic Expectations

You need to have realistic expectations when you’re investing. The stock market is not a gambling place. Don’t expect to become a millionaire overnight. You may earn reasonable returns on your investment. You can grow your money by investing but it will take time. If you want to learn more check out these resources: Cash [...]

Key Value Stock Fundamentals for Screening Stocks

The hardest part of deciding where to invest is actually deciding what criteria you want to look for in a company. I am a huge value investor, and look for solid companies that can be purchased at a discounted price (maybe due to bad short-term news). The trick to finding these companies is to use a stock screener. Most online brokerages have them, as does Yahoo! Finance or Money.com. What I highlight below are some key fundamentals you may want to look at when investing in a company. Remember, a number or ratio may look good, but it is important to understand why that number looks good, or if it looks “too” good.

Investing Tip #35: Buy Blue Chip Shares

Blue chips companies are fundamentally strong companies with a track record of performance, earnings and reputation. Typically, these are large companies that have been in business for many years and are considered to be very stable. These are well known shares generally included in market index such as S&P, NASDAQE, and FTSE. Investment in Blue [...]

Investing Tip #13: Buy Leading Stocks, Not Laggards

A leading stock will out perform or at least keep up with the market. A laggard will under perform. Look for high-growth companies that stand out among their peers in an industry or the whole market. A leader is not necessarily the biggest company in its market. Compare their financials, profit estimates and long-term growth. [...]

How To Overcome the Fear of Investing in the Stock Market

Fear – it’s the number one thing holding people back from investing in the stock market.  It’s crazy how much fear controls money decisions. I recently surveyed The College Investor readers, and fear of investing was a hot topic.  Here’s some common themes: I’m uncertain about investing after the stock market crash a few years [...]

Is It a Good Time to Invest in the Motor Vehicle Sector?

Car companies are making better looking vehicles that are made better and perform better.  As a result, the stocks are doing much better.  For the last year of market action Ford Motors (NYSE: F) is up more than 24 percent.  For that same period, General Motors has risen by over 14 percent.  Nissan Motors (NASDAQ: [...]

Make Your Portfolio More Fashionable Along with Your Wardrobe

Eventually the wardrobe that worked throughout college will have to be upgraded for most students when it comes time to enter the workforce.  There is no reason not to use that experience to help you become a better investor.  As a matter of fact, there is every reason to utilize it to become a more [...]

Profit from Global Growth with the Natural Resources Sector

In its “Global Outlook” report, the International Energy Agency predicts that the bulk of the increase in the demand for energy around the world will be from emerging market nations such as China and India.  Along with that, there will be a tremendous need for commodities such as copper, gold, and coal, among others, to [...]

Gains Ahead for Pharmaceutical Sector

Due to the provisions of The Affordable Care Act, or ObamaCare, there are huge opportunities in the pharmaceutical sector for long term investors, no matter what the style.  That is certainly been shown by the performance of “Big Pharma” companies such as Eli Lilly (NYSE: LLY), Merck (NYSE: MK), and Pfizer (NYSE: PFE) in recent [...]

Should You Tell People What You Invest In?

John and I used to play golf regularly until one day he started asking me about what stocks I invested in.  At this point in time, I refused to tell him what I was specifically doing until he mentioned what he was doing and just wanted to know why I was doing whatever I was [...]

Dollars for Donuts: Is Krispy Kreme a Buy?

Krispy Kreme (NYSE: KKD) hit $20 on Friday, after it took a huge hit (from a recent high of $25) when its 3rd quarter results came in less than expected. In the 3rd quarter of fiscal year 2014, which ended on November 3rd, Krispy Kreme announced its revenues increased by 6.7% to $114.2M compared to the [...]

Will We See a Santa Claus Rally in 2013?

The Santa Claus rally is a stock phenomenon that happens when the stock market rallies at the end of the year.  It’s different from an stock market indicator, which attempts to predict what the future year will do. Most Santa Claus rallies occur during the last week of the year – between Christmas and New [...]

6 Excuses That Prevent You From Saving for Retirement

You know the drill. If you want to save for retirement it’s best to start early, even if you can only contribute a small amount of money – that amount will add up over time (it’s the power of compound interest). You know this is true because you’re smart. Yet there’s something holding you back [...]

Research The CEO and Board of Directors Of Your Company!

If you’re going to invest in a company, you need to know what the leaders of that company are all about.  Do they have integrity, or have they been investigated for being unscrupulous in the past?  These are important questions, because as a shareholder, you’re essentially trusting the people with your money.  You expect them [...]

Laurie Itkin Made a Million Before Becoming The Options Lady

Today I wanted to share an interview that I had with Laurie Itkin, who also goes by the name The Options Lady.  I love Laurie’s story because she works in financial services, and was a millionaire before she turned 40. She started investing when she was 24 years old, and kept it simple though her [...]

The Risk Reward Ratio is Not What You Learned

A major tenet of investing is the “risk/reward ratio.”  We just talked about it last week when we discussed how risk and reward is related.  Basically, we argued  that the more risky the investment, the higher the potential reward for the investor.  But that has proven not to be always true for individual stocks.  According [...]