If you are new to investing, you would definitely want to know how to invest your money. While there are many investment options available, it is financially prudent to select the best – so that even in the worst market scenario, your investment is safe and provides the anticipated returns. Here are the top ten [...]
Groupon’s Woes Can’t Be Solved by “Friendly” Hedge Funds
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Over the past month, shareholders of famed internet deals site Groupon (GRPN) have encountered a wild ride up and down more than 50% as top-performing hedge funds claimed a stake in the company. One of the best performing funds in the last two years, Tiger Global, disclosed it owned 9.9% of the company. Someone close [...]
Avoid Businesses Without Solid Profit Plans
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A big part of investing is knowing what NOT to invest in. For me, I like to invest in companies with a solid plan to profitability, that even a monkey could run, like utility stocks. However, it is essential to avoid companies that have no solid profitability plans, like Best Buy. Here is what I’m [...]
My Favorite Discount Brokerages
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There have been a lot of changes in the brokerage world since I last wrote about my favorite discount brokerages. Most recently, Sharebuilder was acquired by Captial One. As such, I thought it would be a good idea to share with you my two favorite brokerages, and why I like them, use them myself, and [...]
Betting on Crime: Investing in Private Prisons
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One of my (foreign) economics professors always said that Americans are good at two things: gaining weight and human storage. Human storage was referring to the millions of Americans locked behind bars. More than 2.2 million Americans currently call a jail cell their home, and the industry is booming. Thanks to a favorable legal environment [...]
These Schools Offer Their Students Hedge Funds to Run
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Earlier this week I talked about how joining an investment club in college and how that can be a great way to learn about investing. However, some colleges take it to the next level, and offer their students a chance to run an actual hedge fund or investment fund. These funds are managed by the [...]
How Shark Tank is Making Me a Better Investor
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I’m enjoying the new season of Shark Tank, a reality show where entrepreneurs pitch their businesses to venture capitalists who decide whether or not to invest in a business. The show provides some great investment lessons from very successful business leaders, entrepreneurs, and venture capitalists. Here are just a few reminders that Shark Tank gives [...]
The Easiest Way To Find Great Companies To Invest In
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Thinking and finding companies to invest in can be hard. That’s why I wanted to share with you the best way to find great companies that you can invest in right now. It doesn’t require diligent research; it doesn’t require vast investment knowledge; and it doesn’t require any special skills. All it requires is a [...]
Reader Question: What is the Difference Between a Roth IRA and an ETF?
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As long as you keep sending me questions, I’ll do my best to answer them each week (if you’re comfortable letting me). You can ask a question here. This week’s question comes from Solomon, who was wondering what the difference is between a Roth IRA and an ETF…check it out: The Question I have [...]
6 Tips to Find Safe Insurance Stocks
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In light of all that is happening on the east coast, it might be time to turn our attention to the insurance industry. Like utilities, insurance companies have been a place of safety for investors. They are big, profitable cash cows that usually pay very good dividends. Why Invest in Insurance Companies Insurance companies [...]
How to Steal the Pros’ Stock Picks
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I’m not ashamed to admit that I steal a stock pick from a hedge fund or mutual fund from time to time. In a universe of thousands of individual stocks, it would take years to do your own sorting – and believe me when I say that reading through the financials of 100+ companies just [...]
CarMax Should Lead Used Auto Sales Recovery
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This week’s bullish case for CarMax in Barron’s encouraged me to reopen a CarMax annual report that had been gathering dust on my desk. As the Barron’s article says, CarMax is a differentiated retailer in a very commoditized space – used car sales. Let’s dig deeper into CarMax’s business model to determine whether or not [...]
The Case for Investing In Local Stocks
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A theory is something that is not proven true, but backed by continuous testing and supporting evidence. In finance, no theory is tested more than the theory of efficient markets – that is, all known information is always priced into a particular security. Researchers have an incredible interest in the idea of informational asymmetry, the [...]
Can Weyerhaeuser’s Timber Propel it to New Heights?
Timber prices run hot and cold, but for right now, the timber trade is absolutely on. This year, Weyerhaeuser Company (WY) –the largest company in the timber business – has logged an impressive 40% return. Can Weyerhaeuser ride the waves in timber to a record valuation? What Drives Weyerhaeuser Weyerhaeuser is much larger than [...]
What Was Your Best Investing Day Ever?
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I think it is always fun to share awesome investing stories, and I wanted to share mine. There aren’t a lot of great deals right now, so I’ve been spending most of my time reminiscing over past trades that have worked out well. Here is the story of my best trade ever (it’s actually two trades), and [...]
