The Riskiest Investments You Can Make

Investing is a game that involves balancing the risk and reward of the thing you’re investing it.  However, there are some investments that are much riskier than others.  And these are investments that you should really think carefully about before jumping in.  Because, even though they’re risky, when they do yield rewards, the rewards are [...]

The Easiest Way To Find Great Companies To Invest In

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 [...]

Weird Stock Market Indicators

There are a lot of odd hypotheses and weird indicators when it comes to stock market performance over time.  I thought it would be fun to share a few that have actually been pretty successful over time (there are, of course, thousands of others that are not as successful).   Who knows, maybe there is some [...]

Investing Tip #109: Learn Technical Analysis Before Trading

Technical analysis is based on the study of charts and graphs of trading patterns and prices to forecast the future movement of prices through the study of past market data. Statistical tools provide technical indicators based on price and/or volume data. They use current and past market data to indicate market trends and to estimate [...]

How You Can Use SWOT Analysis for Investments

SWOT analysis is a strategic planning method that looks at: Strengths Weaknesses Opportunities Threats It is commonly used in business development and marketing, but it is a great tool to apply to long term investing strategies as well.  When making any investment decisions about a company, you should carefully analyze these points.  As such, here [...]

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 [...]

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.

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 [...]

Groupon’s Woes Can’t Be Solved by “Friendly” Hedge Funds

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 [...]

Betting on Crime: Investing in Private Prisons

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 [...]

How Shark Tank is Making Me a Better Investor

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 [...]

Reader Question: What is the Difference Between a Roth IRA and an ETF?

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

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 [...]