Succeeding in life means that you don’t give up.
Thursday, March 31, 2016
Wednesday, March 30, 2016
Tuesday, March 29, 2016
It’s often rewarding for people to own shares in companies that consistently expand their free cash flow.
Monday, March 28, 2016
Wednesday, March 23, 2016
Dividends should come from free cash flow. You should look for companies with dividends amounting to less than 50% of annual free cash flow.
Tuesday, March 22, 2016
Friday, March 18, 2016
Thursday, March 17, 2016
Wednesday, March 16, 2016
Volatile economic times call for a bigger emergency fund. It would pay to have enough cash to pay for a year to 2 years’ worth of expenses. Easier said than done for the vast majority of people, but if you are in a position to do it by all means do so. On another note, you should have a decent emergency fund before you invest in stocks.
Tuesday, March 15, 2016
Monday, March 14, 2016
When long term investors see the stock market declining, they should go shopping for excellent publicly traded companies on the cheap.
Friday, March 11, 2016
Before you spend money on something, think to yourself, “Do I really need this?” This best way to save is not spend at all if you can help it.
Thursday, March 10, 2016
One way to keep track of whether or not you live within your means is to do a personal income statement. Take what you make each payday or time period such as a month and subtract what you spend. If the number is positive, then you are spending less than you earn. If that number is negative you are either leaning on savings or credit to prop you up. If it is negative, you need to figure out a way to earn more and/or spend less. It’s preferable to make more and spend less.
Monday, March 7, 2016
When researching a publicly traded company, it always pays to read the annual letter to shareholders. It can tell you a great deal about the qualitative characteristics of a company. Of course, this isn’t the only thing you should do in your research, but it represents one important component.
Friday, March 4, 2016
Just because a company beats Wall Street estimates doesn’t necessarily mean that it expanded its fundamentals for the quarter or that it makes a great investment over the long term. Conversely, just because a company doesn't beat Wall Street estimates doesn’t necessarily mean that a company is seeing degrading fundamentals or that investors stand to lose everything over the long term. Always dig deeper.
Thursday, March 3, 2016
Wednesday, March 2, 2016
It pays to read to the bottom of any article, document, paper, etc. when researching stocks. Sometimes the best information occurs somewhere in the middle of the discourse or sometimes near the bottom.
Tuesday, March 1, 2016
When investing in stocks it’s important to think about how the business behind the stock will do 5-10 years down the road. Don’t think about what the stock price is going to do over the next few days, weeks or even months.