Investment Strategy
There are all sorts of ratios and metrics that investors can use to determine whether a stock is undervalued relative to the investment returns it is expected to produce. The most commonly-used one by far is the price-to-earnings ratio, often referred to as the P/E ratio. This article takes a look at the popular P/E ratio, how it's … [Read more...]
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...]
Gold stocks, meaning companies that mine gold or finance gold production, are currently out of favor. That's why it's not a bad idea to add a little gold and/or gold stock exposure to your portfolio as a hedge while it's cheap in my opinion. This article takes a look at the role of gold stocks in a portfolio, and explains why there are four … [Read more...]
Economic bubbles are weird because they seem so obvious in hindsight, and yet most people don't see them while they're happening. There's almost always one somewhere. When one deflates, the next one comes along like clockwork. The most educated and experienced among us all, those in the central banks, in the prestigious investment firms, … [Read more...]