Showing posts with label Value Investing 101. Show all posts
Showing posts with label Value Investing 101. Show all posts
20 Sept 2011
5 Ways to Measure Debt
To most value investors, debt is one of the first things
they look at when analysing a company.
Since value investing, almost by definition, involves buying unpopular
stocks, there is often some kind of bad news surrounding the company which will
only be made worse by high levels of debt.
16 Aug 2011
When Not to Invest in Shares
Most of the academic research out there suggests that shares are the best investment vehicle. They have produced the biggest returns for a given amount of risk; so does this means it always makes sense to invest all your savings in the stock market?
4 Aug 2011
How to Find the Right Kind of Growth
Microsoft style growth
When I talk to people who 'dabble' in the stock market, one of the thing that almost always comes up is growth. The general idea seems to be that if you want a reasonable investment then put your money into Tesco, Marks & Spencer or RBS, but if you really want to get rich then the only way is to find some small company that's about to be the Next Big Thing.
28 Jul 2011
Building an Income to Retire On
Remember the mantra from last time – income first, capital growth second, invest for the long term. With shares, income means dividends and the higher the yield the better. However, there’s more to it than that.
If you go to your favourite stock screener (or just google ‘stock screener’, there are plenty out there) and sort all the shares in the UK market by dividend yield you are probably going to get a large number of junk shares. That’s because the quoted dividend yield is based on the last dividend that was paid out, not the one that’s going to be paid out next; and it's what gets paid out over the next few years that really matters.
22 Jul 2011
Are Your Shares as Safe as Houses?
Generally there are two ways that people invest for their
retirement. The first is in the stock
and bond markets and the second is in property. In both cases this can be either through a fund of some sort or directly as a stock picker or buy-to-let investor.
Thinking about the stock market in terms of property
investing is useful as the two fields have quite a lot of overlap, even if they
aren’t usually compared directly.
A sensible approach for both property and stock
market investors is to focus on income
first and capital growth second with each individual investment being viewed with a long term perspective.
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