Wednesday, April 29, 2015

Financial Thought of the Day April 29, 2015: What It Means to Be a Conservative Investor

A conservative investor is someone who does their research and not invest on a whim or gamble.

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Monday, April 27, 2015

Financial Thought of the Day April 27, 2015: Free Cash Flow Yield Defined

[Free Cash Flow/Market Price per Share] x 100 = Free Cash Flow Yield

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Wednesday, April 22, 2015

Financial Thought of the Day April 22, 2015: Greed Interferes With Rational Thinking

My friend and fellow Seeking Alpha writer Michael Hooper cited a compelling quote from Charles Mackay, a 19th century author who wrote “Extraordinary Popular Delusions and the Madness of Crowds”:

"During the progress of this famous bubble (The South Sea Bubble), England presented a singular spectacle. The public mind was in a state of unwholesome fermentation. Men were no longer satisfied with the slow but sure profits of cautious industry. The hope of boundless wealth for the morrow made them heedless and extravagant for today."

Don’t let greed interfere with rational thinking. Invest in companies that demonstrate prudence in its financial affairs and avoid speculative investments.


Tuesday, April 21, 2015

Financial Thought of the Day April 21, 2015: It Is Essential To Do Your Research Part II

Investing in a publicly traded business without doing your research is like buying a house without looking around inside or checking for liens.

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Monday, April 20, 2015

Financial Thought of the Day April 20, 2015: It Is Essential to Do Your Research Part I

Investing in publicly traded business without doing research is like buying a car without doing a test drive with the assumption that you will like the comfort and utility of your ride.

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Friday, April 17, 2015

Financial Thought of the Day April 17, 2015: The Stock Market Is A Tool

The way I see it the stock market is a tool where long-term publicly traded business owners can buy shares of great companies. It is also a way to sell shares decades down the road to fund retirement, start a business of your own or to exit businesses that fell into subpar status.

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Thursday, April 16, 2015

Wednesday, April 15, 2015

Financial Thought of the Day April 15, 2015: Remember to Diversify

Remember when investing in the stock market diversification is key. One stock can more than make up for the losses of the other. It’s also important to keep cash for emergencies and investment opportunities (once the emergency fund is in place).

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Tuesday, April 14, 2015

Financial Thought of the Day April 14, 2015: Not All Dollars Have the Same Purpose

Not all dollars have the same purpose. Some dollars go to bills. Some of them go to retirement. Some dollars go to recreation.

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Monday, April 13, 2015

Financial Thought of the Day April 13, 2015: Thinking Like a Business Owner

A good way to get started on a path to successful stock market investing is to think of stocks as publicly traded businesses. Investing in companies that sell needed or highly wanted products, sells a unique product and sits behind a wide proverbial moat will do better than a company with many competitors and sells products with trend driven demand.

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Monday, April 6, 2015

Friday, April 3, 2015

Wednesday, April 1, 2015

Financial Thought of the Day April 1, 2015: Free Cash Flow Formula Revisited

(Operating cash flow – capital expenditures) + Disposal of Plant, property and equipment = Free Cash Flow

Go to stockdissector.com