Why leveraged ETFs don’t match the market performance of the indexes they are supposed to track, and how that makes them bad investments.
Dividends are the hottest thing on Wall Street, but they’re not always the most important part of finding quality investments. In more conservative times, companies were valued based entirely on their dividend policies. Investors know that you can’t fake a dividend; a company has the cash or it doesn’t. In 2001, fewer than 20% of […]
Hidden in the small cap corners of the investment universe are hundreds of closed-end funds overlooked by Wall Street. These funds do it all, from private equity-style investments in small companies to leveraged junk bond investments you can’t find anywhere else. Let’s look at the closed-end fund category and explore why investors might choose to […]
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 […]
Here is a look at why Wall Street has started hating utilities. And, are utility stocks still a good investment? Utilities are like bonds.
No one cares more about a business than the person who started it. Proud founders watch their businesses beat new challenges, hit new revenue targets and, if they’re lucky, make many of the early believers incredibly wealthy. But as great as having a founding member in a C-suite can be, some founders overstay their welcome. This year […]
I’m a frequent critic of gold (GLD) in an investment portfolio. Seeing as it doesn’t generate income, doesn’t grow, and costs money to store, it’s a highly-speculative investment. That doesn’t mean it isn’t without its good years – those who bought gold ETFs in 2004 have doubled their money. Gold is Losing its Luster […]
Merger arbitrage was first perfected by Benjamin Graham, one of the world’s first and most successful “value” investors. Although Ben Graham used merger arbitrage in the early 20th century, there is still room to make money on this strategy today. Merger arbitrage is a way to generate an income on low-risk mergers. When a company […]
Water is a business worth more than half a trillion dollars around the globe including everything from infrastructure to treatment. It’s also the most in-demand commodity around the world. Once cleaned, water is necessary to sustain life, grow crops, and recently, bring oil and natural gas to the ground via fracking. In the developed markets, […]
We’ve discussed here on The College Investor the belief that the housing market is going to rebound. And one of the top ways to play it is to look at home remodeling companies, specifically Home Depot and Lowes. Today, let’s look at Home Depot (HD). Home Depot shareholders are undoubtedly enjoying their rollercoaster ride on […]
Warren Buffett is finally cashing in on the upside to his famous 2008 rescue of the investment bank Goldman Sachs (GS) in which he bought $5 billion in preferred stock and negotiated a generous bonus in the form of stock warrants. Those 5 year stock warrants have come due, and Buffett’s taking his stake in […]