For Warren Buffett to invest in a company, he must fully understand the nuts and bolts of a company. It must be simple for him to understand. In fact, one of his greatest metrics for identifying gems is his rule of identifying a company’s “economic moat.” “A truly great business must have an enduring “moat” … Continue reading Investor Education: What is Economic Moat?
While an income statement discusses operating performance, the asset and liability numbers on a balance sheet give us a better look at financial wellbeing. Using this, we can measure growth, operating efficiency, profitability and valuation metrics. It’s simply a statement of current financial position that sums up a company’s assets, liabilities and shareholder equity, and … Continue reading Investor Education: What is a Balance Sheet?
Small-cap stocks have been increasingly popular thanks to the potential for higher returns. But it doesn’t come without risk. What Are Small-cap Stocks? Market cap refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. For … Continue reading Why Investors Should Trade Small-Cap Stocks
While stomach-churning downturns are the nature of the market beast, don’t look at it as a core reason to cut back on your exposure to risk. In fact, if you choose to leave the market during the tough times, and become a bit more conservative in your investing approach, you stand to miss the recovery … Continue reading How to Protect your 401(k) from a Downturn
If there’s one person that knows how to weather a financial storm well, it’s the Oracle of Omaha, Warren Buffett. So what’s his trick? Trick No. 1 – Have Cash on Hand Some people think it’s bad to have cash laying around, an “unproductive asset that acts as a drag on such markers as return … Continue reading Warren Buffett: How to Protect your Money in a Pullback
You’d be surprised how many are making it near impossible to find success. That’s because they try a million different things. They get far too wrapped up with too many ideas. And they lose track of one of the best ways to make money today. Unbelievably, an astonishing nine out of every 10 investors fail … Continue reading The Worst Mistakes Beginner Investors Make
All of a sudden, your favorite small cap stock is falling out of the sky. What do you do? Do you sell? Do you hold? Or, do you freeze, becoming nothing more than a nervous, emotional trader that sells because everybody else is? Unfortunately, most of us freeze, too scared to think straight. We get … Continue reading Protect Your Capital with a Trailing Stop Loss
Many Americans have close to nothing to retire on. In fact, the average family in the U.S. has only set aside $5,000 for retirement. Another 43% of Americans have no retirement at all, according to the Economic Policy Institute. More than 70% have less than $50,000 in their 401(k) accounts, too. Worse, the typical savings … Continue reading Invest Early: The Truth about Retirement
Like most investors, one of your top goals has been to enjoy a financially secure retirement at whatever age you choose. That being the case, it stands to reason that your retirement “nest egg” should ideally generate above-market returns, often with below-market risk. But to do so, you need to have a plan in place. … Continue reading The Top 3 Tips to Becoming a Better Investor
You don’t have to know everything when you invest. However, there are some key terms to master before you place your first trade. After all, it never hurts to understand the bare-bones basics. Term No. 1 – Bid/Ask Price The bid price is the highest price a buyer is willing to pay for an investment. … Continue reading Five Key Terms all Investors Should Understand