Similar to the last post’s discussion of how American consumers are switching to lower cost housing options, the second major trend for 2011 that columnists are suggesting will be a major investing opportunity relates to discount stores. Specifically, deep discount dollar stores … [Read more...]
Applying Value Analysis to Assets
Filed Under: Value Investing by
Ben Graham defines the costs of investing in being what you pay, and the value of an investment as being what you receive in return for your cost. Despite haven written an entire book on the topic of value investing, his entire philosophy can be summed up in that one phrase. Value … [Read more...]
Doomsday Scenario The Risk of Municipal, State or Federal Collapse
Filed Under: Doomsday Scenarios by
In the last post, I stepped you through a couple of fairly basic strategies for hedging your portfolio against the risk of discrete corporate bankruptcy. While posing a significant financial risk to your investment, corporate bankruptcy is generally considered to be a fairly minor … [Read more...]
Averaging Down for Cash Flow Reasons
Filed Under: Investing Strategies by
In my last post about averaging down without risk, I showed you a basic method of using derivatives to average down an adjusted cost base during a short-term price drop in a stock that is already in your portfolio. However, this strategy required that you put some cash on the line for … [Read more...]
Why Computer Manufacturers are Targeting Specific Niches Now
Filed Under: Business Value by
Earlier this decade we saw an explosion in the profitability associated with the manufacture and distribution of personal computer. Companies like Dell, HP, and Apple have made fantastic returns from producing their hardware systems to consumers. However, over the years, competition … [Read more...]
Why Computer Chip Manufacturers are Traded Like Commodity Producers
Filed Under: Business Value by
Something that’s always intrigued me about the technology sector is the cyclical nature of chip products. These are the companies that manufacture the highly complex computer chips that go into the hardware into our phones and computers, and yet they are treated by the market like … [Read more...]
Understanding Credit Card Rate Structures
Filed Under: Personal Finance by
I had lunch with my company’s manager of credit card sales today. He knows his products inside-out, and is always full of amazing tips for customers on how to take advantage of their credit-card features to get the most out of them. Needless to say, buying this man lunch always … [Read more...]
Broad Market Mutual Fund Returns of WPFRX & FDSAX
Filed Under: Fund Analysis by
Funds Name: Westport Funds: Westport Fund; Class R Shares Symbol: WPFRX Nav: $24.18 Name: Sunamerica Focused Series, Inc: Focused Dividend Strategy Portfolio; Class A Shares Symbol: FDSAX Nav: $11.77 Objective & Strategy WPFRX: Westport funds pursues capital … [Read more...]
How is a Mortgage Rate Determined
Filed Under: Personal Finance by
Committing to a fixed mortgage rate is a stressful process, mainly because of the way in which we can never really be sure that we are securing the best rate moving forward. Nobody wants to take on a fixed interest rate, only to see rates plummet the next day. In order for us to be … [Read more...]
Investing In Real Estate Income Trusts: Commercial
Filed Under: Investing Trends by
In the last article I went through a couple of reasons why it is that Apartment REITs showed some fantastic returns after the 2009 recession. However, moving forward, we might have seen the best of times already. While this doesn’t necessarily exclude them from future inclusion in our … [Read more...]
Doomsday Scenario The Risk of Corporate Bankruptcy
Filed Under: Doomsday Scenarios by
Corporate bankruptcy is a major underlying risk associated with every single security in an investor’s portfolio. However, it is only really the fixed-income holders that take it seriously. While this is likely due to the way in which bonds and preferred shares have fewer other risks … [Read more...]
Housing Market Heading Up but Who is Buying?
Filed Under: Personal Finance by
OK maybe the title is a little misleading in the sense that the housing market has seem to steady out more than head up. The title should read "Foreign Investors Jumping in the US Housing Market". The National Association of Realtors reports that non U.S investors have purchased … [Read more...]
Excessive Profit and The Moral Responsibility of Structured Settlement Companies
Filed Under: Personal Finance by
Working with structured settlement companies spanning three decades, I have witnessed a lot over the years both good and bad. One of the questions I often struggle with is how to define an excessive profit in a structured settlement transaction. I often reflect on the role … [Read more...]
Protect Your Financial Documents In Case of a Disaster
Filed Under: Personal Finance by
Many people many think they keep their financial records safe but how safe are they really? What would happen to your documents if a tornado hit, flooding or a fire? Keeping your important documents locked up in a desk is a good idea but not nearly safe enough. Below are four tips to … [Read more...]
Understanding Economies of Scale: Liquidity Costs
Filed Under: Economics of Scale by
I’m usually pretty supportive of Mutual Funds in my articles, but that doesn’t mean that they’re perfect. Because we’re talking about how economies of scale impact funds or comparable portfolios, it’s important that we examine the downside risks of a fund. Specifically, I’m going to … [Read more...]
How an Online Business Creates Value for an Investor
Filed Under: Business Value by
A fascinating new trend from the last three years has been the emergence of social media. Having created value through serving advertisements on a scale comparable to Google (sort of), companies like Facebook have created all sorts of amazing business opportunities for aggressive … [Read more...]
Where Does Linkedin’s Value Come From
Filed Under: Business Value by
The first major social media company to go public this year was LinkedIn. This offering was a major event in the stock market, because it created a reference point against which other social media companies to could be valued. Specifically, people are always interested in trying to … [Read more...]
The Relationship Between ETFs and Their Assets
Filed Under: Personal Finance by
One of the more exciting innovations in the financial markets has been the Exchange Traded Fund. By acting as a publically traded fund without redemption, ETFs have given investors access to extremely cost effective diversification, indexing, and even analytical expertise. This allows … [Read more...]
Why the Decline of the Euro Currency is Worse Than You Think
Filed Under: Personal Finance by
Over the last few months we’ve seen a significant decline in the decline of the Euro against other global currencies. Even compared to some of the more volatile currencies, the Euro is considered to have underperformed on all fronts. However, as 2012 begins to shows indications that a … [Read more...]
Evaluation of Vanguard World Funds & Consumer Staples Mutual Funds
Filed Under: Fund Analysis by
If you haven’t been following along regularly, this is going to be a post that evaluates a series of Mutual Funds based on a selection of information that is compiled in the previous post. You don’t need to open a window to keep up with everything that’s going on, but you can if … [Read more...]
