Lesson on value investing
Submitted by Dividend Growth... on Thu, 2017-06-22 09:41
Imagine if you had $1 million dollars at the end of 2007. You decide to invest this money in the list of the original dividend champions companies. How would you have fared if you had invested that money in the dividend champions almost a decade ago?
I have thought about the answers to this question many times. A few weeks ago I decided to start doing the work to answer it for myself. I always enjoy doing the hard work myself in order to form my opinions.
Submitted by Ken Faulkenberry on Wed, 2017-06-21 22:32
Recognizing the differences between saving, investing, and gambling will help you compartmentalize each, and avoid common mistakes.
Submitted by Ken Faulkenberry on Thu, 2017-06-08 09:35
Over diversification is a serious and common mistake that decreases investment returns disproportionately to the benefits received. Many investors have learned the harmful effects of under diversification and mistakenly believe that the more diversification the better. In portfolio management this concept is totally false.
Submitted by Ken Faulkenberry on Thu, 2017-03-02 10:13
34 Quotes from the Book of Value by Anurag Sharma are investment gems that include deep “second-level thinking”.
Submitted by Dividend Growth... on Fri, 2017-02-10 09:51
The most important question that investors ask themselves is how much money do they need to retire. There are several things to consider, in order to answer this question. I will share those questions, and also share a rule of thumb that I have found helpful in my personal retirement planning.
Submitted by Ken Faulkenberry on Thu, 2016-12-29 11:05
Geometric or Arithmetic Average for Investing? (It Does Matter!) Are you making crucial investment decisions based on incorrect calculations?
Submitted by George on Wed, 2016-08-17 12:32
Learn how to backtest stock fundamentals using Portfolio123 in this tutorial. Back test which fundamentals actually provide valuable information.
Submitted by Dividend Growth... on Fri, 2016-08-12 14:08
It is important to understand the simple math behind early retirement. Your savings rate, and asset returns will determine how long it takes for you to retire. Minimizing taxes and investment costs results in more money compounding for you.
Submitted by Ken Faulkenberry on Thu, 2016-08-11 10:09
Asset Allocation is where investors make their biggest investing mistakes. Portfolio volatility is lowered by combining low or negatively correlated assets.
Submitted by Dividend Growth... on Wed, 2016-08-10 10:30
A common question I receive deals with the amount of money needed for retirement.
This amount varies depending to personal situations.
Submitted by Dividend Growth... on Mon, 2016-08-08 09:16
The most common question or variation of a question I get concerns the amount of time to monitor my portfolio. This includes monitoring existing positions, and researching companies to invest in. As some readers found out at my post on 2015 goals, I strive to optimize my life as much as possible. I believe that synergies are possible between activities I do.
Submitted by Ken Faulkenberry on Thu, 2016-07-14 11:00
What Does Market Capitalization Mean? How Do You Calculate the Formula? Why Should You Care?
Submitted by ModernGraham on Fri, 2016-07-08 12:27
Reading is very important for value investors. In fact, it is one of the 7 Key Tips to Value Investing. A great way to continually hone your investing strategies and pursue the greatest level of investing success is through frequently reading new literature. To that end, here's a list of 5 new books for value investors to consider adding to their reading list.
Submitted by Ken Faulkenberry on Thu, 2016-06-30 09:29
Interest compounding is a powerful financial concept, but dividend growth compounding multiplies the benefits of exponential growth.
Submitted by Ken Faulkenberry on Wed, 2016-06-22 09:02
There is nothing more important than Intrinsic Value and Margin of Safety in Investing! The purpose of estimating intrinsic value is to take advantage of mis-priced assets. The variables of this calculation determine your margin of safety.