Readers occasionally ask me what I think the best investing books are, or what I recommend reading. The truth is, while I've read a lot of investing books and there are tons of good ones, the most powerful resources I've found are online. Compared to other things I've read, the free writings of billionaire investors have been the most useful. … [Read more...]

This article provides three diversified investment portfolios based entirely on index ETFs for passive, hands-off investors. Personally, I find that a combination of index funds and individual stock selections works best for me, and is what I often recommend. Between one-half and two-thirds of my net worth is in index funds while the rest is in … [Read more...]

Asset allocation refers to the investment strategy of balancing risk and reward by determining what percentage of your portfolio or net worth to put into various asset classes. For most investors, a smart approach to asset allocation is a lot more important than individual stock selection. It's a key thing to get right, and an area where a lot … [Read more...]

The Dividend Discount Model is a simplified valuation method that helps you determine the fair value of dividend-paying stocks. This article explains why it works, when and how to use it, what the alternative valuation methods are, and then how to use shortcuts to make dividend stock valuation even simpler. Dividend Discount Model 101: … [Read more...]

Share buybacks, also known as share repurchases, describe when a public company buys back some of its own shares and therefore reduces the total number of shares outstanding. This is a topic that I frequently see misunderstood by investors, and there are a lot of reasonable questions like: Why would a company buy back its own shares? Do … [Read more...]