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Education

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Tactical Asset Allocation Versus Strategic Asset Allocation

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We’re going to explore the pros and cons of a tactical asset allocation versus a strategic asset allocation. Studies show that close to 90% of investment returns are determined by portfolio asset allocation. Yet many investors focus on choosing individual investments and put minimal thought into the importance of asset allocation.

Who is Benjamin Graham? How Did He Change Security Analysis?

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Benjamin Graham laid the foundation of value investing with a set of concepts and principles that changed security analysis and influenced many investors (including Warren Buffett).

5 Most Important Factors to Increase Your Portfolio Value

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5 Most Important Factors to Increase Your Portfolio Value

The Great Beanie Baby Bubble

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  • Somehow, there was a giant bubble in Beanie Babies in the late 1990s.
  • It doesn't really fit the usual pattern of bubbles that I have come to understand, which I guess goes to show that when a narrative gets going and people start to herd, you can get a bubble in anything!
  • The guy at the head of the corporation that made these things seemed to have no clue how this thing inflated.

Altman Z-Score Backtest

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The lowest 20 percent of stocks ranked by Altman Z-score are placed in the first quintile and the next 20 percent in the second quintile and so forth until we have five portfolios of stocks.
The first quintile seems to match the performance of S&P 500 equal weight benchmark for most years, but started underperforming in the second half of 2015 until then the end of 2017.
The top 20% of stocks as ranked by Altman Z-score surprisingly underperformed the benchmark in the 2000 to 2017 time period.

Five Podcasts for Value Investors

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I’ve discovered several great podcasts for value investors. Check out The Intelligent Investing Podcast, Value Investing Podcast by John Mihaljevic, The Value Guys Stock Talk Show, We Study Billionaires – The Investors Podcast, and Focused Compounding by Andrew Kuhn & Geoff Gannon.

Drawdowns and the Concept of Maximum Drawdown

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Losing your principal is the biggest risk in investing.

3 Steps to Avoid Repeating Investment Mistakes

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The following steps will help you reduce your investment mistakes and improve your returns.

What is Market Capitalization: Calculation and Categories

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The market capitalization calculation is an important and useful stock market valuation formula for investment analysis.

Fundamental & Technical Analysis - What is the Difference?

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You don’t have to invest in an asset unless the odds are heavily in your favor. Using both fundamental and technical analysis can increase your probability of making wise investment decisions.

Performance Of Dividend Payers Versus Non Dividend Payers In S&P 500

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I recently obtained the data behind the performance behind dividend and non dividend payers in the S&P 500 per year. This is a calculation performed by the index committee that separates members of S&P 500 into dividend paying and non dividend paying, and then equally weighting those portfolios. The performance of an equal weighted portfolio of dividend stocks is compared to the performance of an equal weighted portfolio of non dividend paying stocks

The Magic Dividend Cocktail

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The dream of dividend growth investing is a dream about passive income -- An ever growing stream of passive income that lasts for decades and requires very little work to maintain.
That was my dream anyway, and for the most part I achieved it.

Unfortunately, the dream of passive income is easier to dream about than it is to achieve. It takes work. Dividends don't just keep growing out of "thin air" -- Companies have to actively make the right moves to keep those beautiful dividends growing.

Inflation Guide: How Should the Inflation Trend Affect Your Asset Allocation?

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The inflation trend, or the direction of the rate of inflation, has a profound affect on how your portfolio should be structured.

The Blueprint for Successful Dividend Investing

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Dividend growth investing is one of the most straightforward and powerful ways to build long-
term wealth. It can also seem highly complicated to those without experience in this investment strategy.

Fortunately, one of the best things about dividend growth investing is its ease of implementation. This makes it well-suited for a wide variety of investors.

Investment Diversification Definition & Purpose - What You Should Know:

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