A REIT (real estate investment trust) is a company that has property and building holdings and usually directly operates these cash flowing real estate assets for a profit. There are many different types of REITs and they can own and operate a variety of commercial or residential properties. Their holdings can include commercial office space, […]
Current Best REITs 2021 Read More »
Benjamin Graham is the father of value investing based on price versus fundamental underlying business value. He was a college professor, successful investor, money manager, and the best selling author of the classic book ‘The Intelligent Investor’ and co-authored ‘Security Analysis’. He taught at Columbia Business School and UCLA’s Anderson School of Management. His top
Benjamin Graham Quotes for Investors Read More »
Who was Warren Buffett’s investment mentor? Warren Buffett was not only in a class that Benjamin Graham taught at Columbia Business School, receiving an A+, but also worked for Mr. Graham after graduation. Buffett was so happy to get the job he didn’t know what he would be making until he got his first paycheck.
Benjamin Graham: Intelligent Investor Summary Read More »
This list of the top books on investing of all time is based on a quantitative composite ranking of Amazon book reviews, all time sales, and, quantity of ratings, and author popularity. This is a guide for investors to dig deeper on Amazon and see which books fit their own investing time frame, risk tolerance, return
35 Top Books on Investing of All Time Read More »
The “magic formula investing” system parameters and principles are used by Joel Greenblatt in his approach to value investing to outperform the market. In his book ‘The Little Book that Beats the Market’, Greenblatt writes that this system buys cheap stocks of 30 companies that have high earnings yield and also a high return on
Joel Greenblatt Magic Formula Investing Read More »
Portfolio backtesting is the process of using historical price data to analyze and backtest the returns of a group of stocks, exchange traded funds, or mutual funds in the past. A complete portfolio backtest of your watchlist can visualize the risk of correlations, optimum percentage of capital exposures, drawdowns, and potential for diversification to hedge.
Portfolio Backtesting Explained Read More »
“Compound interest is the eighth wonder of the world. He who understands it earns it, he who doesn’t, pays it.” -Unknown Why is compound interest considered the eighth wonder of the world? Here are three shocking examples of the exponential growth of compounding. If you start with capital and grow it an additional 1% everyday
Why Compound Interest is the Eighth Wonder of the World Read More »
An accredited investor is someone with an approved status to invest in more complex ways than the average retail investor. An accredited investor is approved to invest in hedge funds, venture capital, angel investments, and private equity offerings among other opportunities. While financial regulation laws and enforcement agencies vary by country the common principle is
Accredited Investor Definition Read More »
Enterprise value or EV is a financial measurement calculating the total monetary value of a business in the marketplace. Enterprise value is not the current market price but what the true value of the business is based on its assets and cash flow. The EV is the difference between the outstanding debt and the assets
How to Calculate Enterprise Value Read More »
In the world of finance, discounted cash flow or DCF for short is the method for analyzing and projecting the value of a stock, company, project, real estate, or intellectual property by the estimated time value of money it generates. Discounted cash flow measurement and analysis is used in stock market investing, real estate investing
Discounted Cash Flow Formula Read More »
There are two important things to consider before deploying capital with any trade, investment, loan, or business venture. Both the return on investment (ROI) and also when and if you will have a return of the investment capital itself must both be understood. Whether the potential for return is worth the risk taken depends on
Return on Investment and Return of Investment Read More »
Here are the Berkshire-Hathaway portfolio holdings managed by Warren Buffett as of March 31, 2020 that were reported in the 13F filing to the SEC on May 15, 2020 along with other filings. His portfolio holdings by sector: Information technology 39% Financials 35% Consumer Staples 16% Consumer discretionary 5% Industrials 3% Health Care 2% Company/Ticker/
Current Warren Buffett Portfolio Read More »
Book value is a fundamental metric used to measure the intrinsic value of a company with the ratio of price/book value. This valuation metric can at times create a price support level for stock prices as this is the valuation that value investors will come in as buyers. To quantify the current value of a
Book Value Per Share Formula Read More »
A follow-through day is a bullish signal created by William J. O’Neil to quantify a high probability change in a current stock market direction from a downtrend to starting a new up trend. Follow-through days signal during downtrends, corrections, and bear markets when a key stock market index closes much higher than the previous day’s
What is a Follow-Through Day? Read More »
This is a guest post by Manu Shoker of manushoker.com. Why Trading and Investing are so Fundamentally Different There is a popular misconception that trading and investing could be used interchangeably with one another. But as professional traders and investors can attest to, they are both radically different. It’s easy to mix the terms when both
Investing vs. Trading: What’s the Difference? Read More »
With the endless choices of podcasts on investing to listen to in 2020 I thought it would be helpful to recommend five that I enjoy and think bring great value and information to listeners. These five are a great place to start and listen to a few episodes and see if they align with your
Best Investing Podcasts in 2020 Read More »
Dollar cost averaging is an investment process where you invest a set amount of money into a market at regular intervals. The strategy is to put a fixed amount of dollars in a specific investment like an index fund so you get more shares when the price is lower and less shares if the price
What is Dollar Cost Averaging? Read More »
Private equity is specifically a kind of stock ownership in a company that is not publicly traded on a stock exchange. In recent times though it has been what people call private funds that use capital to takeover companies (many times through leveraged buyouts) with the goal to rebuild the company’s business model to create
What is Private Equity? Read More »
Warren Buffett thought the management fees that hedge funds charged investors was ridiculous based on their historical returns in comparison to the markets. So Mr. Buffett set up a challenge for the hedge fund industry in 2008. One fund accepted his challenge, Protégé Partners LLC, and they made a million-dollar bet on who could produce
Warren Buffett’s Favorite Investing System Read More »
Stocks are an asset class of investments where you buy a share of ownership in a publicly traded company. Stocks are equity in a company. Shares trade on stock exchanges through market makers and executed for investors through a stock broker. How do you invest in stocks? Decide you want to own stocks. Understand the
How to Invest in Stocks Read More »