Investment Strategy
A great company doesn’t necessarily make a great stock pick, and a troubled company doesn’t necessarily make a bad stock pick. That’s because in addition to analyzing the quality of the business and the expected earnings and cash flows it may produce, investors need to consider the price they’ll pay for it. Regardless of how popular a growth … [Read more...]
There are a lot of investment calculators and retirement calculators online, but from what I've seen most of them are too-simplistic and overly-optimistic. Many of them suffer from the same two common shortcomings: They don't take into account inflation, which is devastating to exclude. They don't calculate investment income; just … [Read more...]
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...]