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 […]
Archives for July 2014
Investing Tip #92: Pick Good Sovereign Bonds Abroad
You may invest a small portion of your capital in government bonds in a country with no fiscal deficits or trade deficits and a high savings rate. Pick good sovereign bonds abroad. This will provide you steady return and boost your portfolio’s risk-adjusted performance. If you want to learn more check out these resources: Buying […]
Investing Tip #91: Investing Globally? Be Careful.
Templeton, a value investor says, “If you search worldwide, you will find more bargains and better bargains than by studying only one nation.” If you want to diversify globally, pick the companies in countries that have investment friendly environment with less government regulation, interference and ownership issues.” Before investing globally it is crucial that you […]
Back to School Gear 2014: College Edition
In just a few short weeks it’ll be time to pack up and head back to school. If you haven’t snatched up your back to school gear yet, now is the time. There are currently some awesome back to school sales and you won’t find prices any cheaper. I’ve scouted the internet looking for the […]
Investing Tip #90: Select Three Funds
Mutual funds are simple and good instruments to build your portfolio. There are different types of funds such as index fund, value fund, bond funds, balance funds, sector funds, large cap, medium cap and small cap funds. Each fund has its own investment strategies and objectives. They have different risk and return profile. William J […]
Yes, You Can Save Too Much For Retirement
You’ve heard the sayings from every personal finance pundit – max out your IRA each you, contribute to your 401k to the maximum. And all of these are great tips to some extent. But, depending on your personal goals, you could be saving too much for retirement. Yes, there is such a thing as saving […]
Investing Tip #89: Don’t Invest in Too Many Funds
Although it’s important to diversify your portfolio it’s also possible to over diversify. A fund invests in stocks or many companies. A single good fund would give you all the benefits of diversification. Therefore there is no need to invest in too many funds. Rather do your homework carefully and select the best performing fund. […]
Investing Tip #88: Invest in One or Two Value Funds
By investing in both, value funds and growth funds, you’ll keep your portfolio diversified. Value Funds invest in the companies that are deemed to be undervalued in price. Select one or two highly rated value funds and invest periodically. Keep your money invested over a long period. If you want to learn more check out […]
Investing Tip #87: Invest in One or Two Growth Funds
Growth Funds invest in growth companies which are expanding profits and earnings. Select one or two highly rated growth funds and invest a small amount periodically. Let your money compound over a long period. If you want to learn more check out these resources: The Ultimate Guide on When to Make Traditional vs. Roth IRA […]
How Much Should You Pay In Rent?
I’m not a fan of cutting costs, but I’m also not a fan of overpaying for things that you don’t really need. But housing is something you really need – you can’t be homeless. But how much do you really need to spend on rent and housing? It’s not as much as you think. Earlier […]
Investing Tip #86: Learn Peter Lynch’s Strategies
The methods incorporated by Peter Lynch are extremely simple and can be put into practice even by those who are new to this field. His book, Beating The Street, explains his own strategies for investing and offers advice for how to pick stocks and mutual funds to assemble a successful investment portfolio. ‘Peter’s Principles’ will provide […]
EOG Resources is a Quality Stock, But is it Time to Buy?
The shares of EOG Resources increased by 56% over the past year and 233% over the past five years. EOG is a high-quality oil shale play but with its rise, has it played out or is it still a good way to invest in the sector. It is flirting with breaking its 52-week high and […]
Investing Tip #85: Avoid Over Diversified Companies
Avoid investing in companies diversifying beyond their core competence. Such companies try to sustain growth through aggressive acquisitions. The acquisitions may dilute your shareholdings if acquisition cost is paid with the issuing of new stocks. If you want to learn more check out these resources: How to Turn Down $3 Billion at 23 Years Old 4 […]
Investing Tip #84: Stay Away from Hot Stocks in the Hottest Industry
Hot stocks and hot industries are constantly in the news. And everyone talks about them. Peter Lynch tells, “Hot stocks go up fast, usually out of sight of its actual value, but they fall just as quickly”. Hot stocks are a dime a dozen. If you’re investing for the long term do your homework and go […]
5 Ways You Might Be Able to Save Money on College Housing
After college, your biggest expense will be housing. But what about while you’re in college? Housing can still make up a huge percentage of your expenses. Unfortunately, most freshman will be out of luck in the savings department due to universities requiring first-year students to live on campus. But every year after that you have options. […]
Investing Tip#83: Read Benjamin Graham’s “Security Analysis”
The classic book “Security Analysis” remains as relevant today as when first published 80 years ago in 1934. It contains teachings of Benjamin Graham, “the father of value investing,” and is applicable to a wide diversity of market conditions, countries, and asset classes. It shows you a road map for investing to follow. If you […]
Investing for College Students
College is the absolute best time to start investing for your future. Heck, college itself is an investment in your future (just not such a financial one). College is when I started investing. College is when a lot of famous investors started investing. The bottom line is that investing for college students just makes sense. […]
Investing Tip #82: Read Peter Lynch’s Book “One Up On Wall Street”
The book “One Up On Wall Street” ranks as one of the best investment primers ever for small investors. Peter Lynch guides you on developing strategies in buying, selling and holding equities with a preference for value investing in companies that have sound fundamentals. His investing philosophy generally resembles the value investing and is largely […]
Investing Tip #81: Use Graham’s “Margin of Safety”
Success of value investing largely depends on the correct estimation of the intrinsic value of the stock. Graham’s margin of safety, the difference between a stock’s price and its intrinsic value, provides you cushion against estimation errors. The farther the purchase price is below its intrinsic value, the greater the margin of safety against future […]
Investing Tip #80: Use Graham’s Magic Multiple
You can use Graham’s Magic multiple to pick stocks. This multiple is just the multiplication of the two most commonly used valuation ratios, PE and PB. Choose stocks with Graham’s multiple that are less than 22.5. If you want to learn more check out these resources: The 5 Minute Summer Portfolio Jump Start The Value […]
How Student Loans Are Different In The UK vs. The US
You’re probably not surprised that UK students get students loans, just like American students. But what you may be surprised at is how their system for paying for college is much more efficient, resulting in lower overall education expenses and less burden for student loan borrowers after graduation. Let’s take a basic look at how […]
Investing Tip #79: Prefer Stock Priced Less than 15 Times its EPS
P/E ratio is the ratio of market price per equity share and earnings per share. It is a common measure of how the market currently values the firm’s earnings. If you are a value investor, Graham advises not to invest in stocks where the P/E ratio is more than 15. Following this rule can help […]