Thursday, December 17, 2015

Financial Thought of the Day December 17, 2015: The Day Trader Versus the Long-Term Investor

Here’s how a day trader thinks versus a long-term investor:

Day trader: “Man, my stock in ABC Corporation is down 8% today. I’m not going to make any money on my trade.”

Long-term investor: “ABC Corporation is down 8% today. It’s a fundamentally sound company it will rebound. I’m going to spend time with my family now.”

Wednesday, December 16, 2015

Financial Thought of the Day December 16, 2015: Dividends Have to Come From Somewhere

It’s best to always look for companies where the dividends come from free cash flow. Companies that pay out less than 50% of its free cash flow in dividends in a full year represent a good rule of thumb. If a company pays out more than 100%, then the company is most likely dipping into the balance sheet or relying on outside sources to fund the dividend.

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Tuesday, December 15, 2015

Financial Thought of the Day December 15, 2015: Think Long-Term When Investing in the Stock Market

When investing in the stock market, think long-term. That means thinking in terms of barriers to entry, competitive advantages and demand of product. No one can predict the daily swings of the stock market. However, a company’s stock will reward shareholders over the long-term if it sits behind a wide moat against competitors and sells products that people will buy. I will preach this until I am blue in the face.

Monday, December 14, 2015

Financial Thought of the Day December 14, 2015: Save for Harsh Times

Remember to save as much as you can for as long as you can. You never know when you will need the savings or for how long.

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Friday, December 11, 2015

Financial Thought of the Day December 11, 2015: Emergency Fund

It pays to have enough cash to have on hand to pay your normal bills for a period of one year in case of job loss.

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Thursday, December 10, 2015

Financial Thought of the Day December 10, 2015: Keep A Cool Head

When dealing with financial decisions always keep a cool head…you may regret it later. Buying a car or furniture without thinking about it could prove detrimental to your financial health and product satisfaction.