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Conservative estimates place it around 70%… while others believe it is closer to 95%… the number of investors who “fail.” I suppose it shouldn’t shock us… after all, whenever you talk with a Mutual Fund representative, if they’re doing well, they will point you to the fact that they are in the 1st or 2nd Quartile – meaning, the fund they manage has returned more than 75% or 50% of the other fund managers’ portfolios. Obviously, there must be several then who are in the 3rd or 4th Quartiles (the bottom).
After last week when I posted this article, several of you sent emails sharing your thoughts on why you, and others, have lost money… particularly as a result of chasing and holding stocks that are falling. There are several reasons… and today I thought I’d share a few more. READ MORE →
…Low risk
…Reliable returns
…Passive income
These are just a few of the catch phrases being tossed around by investors who swear by dividend stocks. With the demise of the savings account and with historically low interest rates over every guaranteed investment certificate, many investors have turned to dividend funds to provide them with an income source. Until recently, some payed double digit dividends… although this is becoming an unsustainable practice for most. Still, at 8% and 7% and even 6% dividends, investors are flocking to these stocks… which has had another affect! In some cases, these stocks have also seen their core prices rise… but not always.
I thought I’d borrow a list from a friend of mine who is faithful in following US dividend stocks (Intelligent Speculator – @ www.intelligentspeculator.net) to see if the top 10 in his December list have proven to be winners in the past year when you compare the stock’s price to it’s dividend. Let’s take a look… READ MORE →
“Self Deception… not only will we put up with it, we love to embrace it…”
~ Doctor Stock
Grab a coffee, sit down with a few friends and begin sharing investment experiences… and after a little while, you begin to notice something… we tell more about our successes than our failures. But I’m not surprised, are you? After all, who wants to look like a schmuck in front of friends and family? So, we embellish… recreate… and re-imagine our successes as an investor, all the while knowing (deep down) that we’re stretching the truth… as are the rest of the disguised schmucks around the table.
… or do we? READ MORE →
It’s like a well-worn boot for many professional investment advisors… but it’s time to kick it to the curb.
Price to Earnings ratio (or P/E ratio) is the most common fundamental term you’ll hear. Many investors consider the P/E ratio to be the quickest way to determine whether or not a stocks price is overvalued or undervalued. And you don’t have to be a rocket scientist to figure out the P/E ratio… simply divide a company’s stock price by the company’s earnings per share… or use my preferred method: www.reuters.com.
Generally speaking, when companies “report their earnings,” they are letting you know how profitable they are on a quarterly and yearly basis.
So… walk through this brief scenario with me for a moment and see if you can make “cents” of it all… READ MORE →
One of the cardinal rules for Investment Advisors is the “know your client” rule. Essentially, this rule recognizes the importance of personalizing investment advice for individuals who are unique… whether it be risk tolerance, portfolio size, stage in life, investment knowledge, etc.
In my experience, both as a former bank employee who was guided to direct clients into particular products and investments and as a consumer of these options, the typical “know your client” questionnaire is more of a formality more than it is a guideline for advisors.
And, to be honest, I think this is generally alright. Let’s face it… sometimes people have very unique circumstances. But more often than not, we all fit within a general season of investing.
Some of us are younger and just starting out. Our commitments are different than others of us who are looking toward the last few years of our careers and wondering if we have enough saved to retire. Some of us have incurred debts, whether it be as a result of education, purchases, or unforeseen circumstances.
Whatever unique situation we find ourselves, it is fair to say that we are not alone… READ MORE →
Whether your just starting out or are an experienced investor, you can always sharpen your skills, broaden your perspectives, and become a better investor. There are a variety of ways you can do so including attending an investment seminar, joining an online trading community or local investment club, or simply read a book. On occasion, I’ll go to my local Chapters store, peruse the investment magazines and book shelves, and sit and skim through some articles or read a book.
If you’re looking to improve your abilities to invest wisely, consider picking up a book this year. To help you know where to begin, I’ve included a few that you might want to consider: READ MORE →
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