Investors buying dips on winners. Part 4 of the 7 Part, White Top View series: Playing Market Odds. Discussion of buying dips on winning investments and avoiding averaging down on losers. We cover two outstanding companies as examples that show profitable dip buying, AutoCanada and Cineplex. Than two examples of passing on bad news stories to avoid averaging down with losers, Wi-Lan and Potash Corp.
Read MoreMisses, writeoffs, bad math and distracted investing. Last post discussed the first three of the 6 Sins of new investors: 1. News based investing = bad news! 2. No research and 3. The high cost of holding losers. In this post we discuss the next three sins: 4. Buying turnarounds or bankrupt companies can bankrupt you! 5. Averaging down sinks portfolio performance and 6. No distracted investing, keep eyes on the road to your financial future! This is Part 2 in the 7 Part White Top View series, Playing Market Odds.
Read MoreBuyers and sellers agree and disagree to make a market work. The stock market needs buyers and sellers as well as both agreement and disagreement. We also need significant numbers of buyers and sellers willing to trade significant numbers of shares.
Read MoreBenjamin Graham and a market myth: voting emotions or weighing facts plus discussion of the myth that small investor behavior causes market panics. Stock market volatility can startle investors and cause fear. However the ‘Small investor behavior causes market panics’, is self-righteous, self-serving nonsense promoted by some stock market professionals. When you know and understand the stock market, you can confidently watch markets without worry.
Read MoreAutos, jobs and the FED Part 2 of 2 in the White Top View series: Key Market Indicators. Part 1, 4 Signals cut through stock market noise introduced these key market indicators. This time auto sales, employment and the Fed or U.S. Federal Reserve funds rate are discussed.
Read MoreA reader asked for a comment on the bitcoin market. Anyone with a burning need for a currency free of any central authority can use and trade bitcoins. Or shiny stones, old teacups or anything you can get someone else to agree has some value. With bitcoins some people will actually accept them as a form of payment.
Read MoreWhere did the money go? 1st look at cash flow, Part 4 of 4. The cash flow statement reveals vital information. It tracks the cash received as well as the cash consumed by the company. Knowing the comings and going of cash helps investors understand the pulse of corporate finances. A look at cash flow in our introductory discussion of financial statements for people new to investing.
Read MoreGetting to the bottom line on financial statements, Getting to the bottom line on income statements, part 3 of the 4 part White Top View series discussing basic financial statement information for novice investors. Links to the four parts of the White Top View Series, Basic Numbers are at the end of this post. The income statement reports how much revenue came in during the reporting period. On an annual report that period is a year but for the quarterly reports the numbers relate to the past three months.
Read MoreThe keys to a treasure trove of investing information is understanding financial statement basics. With that basic skill, investors can ask companies to, “show me the numbers!” Financial statement basics help those new to investing get comfortable looking at and using financial statements. This is Part 1 of the White Top View Series, Basic Number Reading that provides an introduction to reading financial statements.
Read MoreMore time in equals more money out! Wisdom of the saying, you get out what you put in, applies to investing. This Part 2 of 3 discusses committing an hour a week to learning management of investments and to understanding markets, investing and your portfolio.
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