Why leveraged ETFs don’t match the market performance of the indexes they are supposed to track, and how that makes them bad investments.
A quick look at Google’s stock screener reveals there are nearly 8,200 publicly-traded stocks and ETFs, far more than most people could ever care to study and understand. One of the leading fund companies, iShares, says there are just over 60 investable sectors, a number that is much more manageable. The rise of sector ETFs […]
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.
I want to harp on an idea central to many of my posts here: a share of stock isn’t just a ticker but a piece of a business. That business isn’t as simple as it may appear. Private prisons are a way to skirt public unions; RetailMeNot is a play on Google’s search engine results. […]
Netflix (NFLX) is a great service, but is it a great stock? I’ve brought up Netflix before here at the blog, saying that I expected very little from it. I have to own up for my error — it’s rocketed since I published that article. I’m willing to admit defeat on this one, but I still […]
I’m one of those cheap freaks who googles a coupon anytime I buy something online, so you can imagine how excited I was when I realized that RetailMeNot would soon go public. RetailMeNot (SALE) is by far the leader in the online coupon category. The company lists coupons from tens of thousands of sites and […]
Lululemon (LULU) is a Wall Street darling. It should be. The company earns ridiculous returns on invested capital, operates as a cash cow that can internally fund its own expansion, and has some of the best profit margins around. Oh, and it has a reputation for selling boatloads of merchandise through a single store. Revenue […]
Robert wrote an article a few weeks ago about whether or not book value mattered when making an investment. He wrote about mREITs, and whether or not a book value was a good indicator of a company’s actual value. Since mortgage REITs are really just a portfolio of leveraged debt investments, book value is everything. […]