As an investor you have noticed that some companies pay dividends, while others do not. Even among the companies that do pay dividends, the dividend yield vary greatly. What accounts for these differences? Is any one style of dividend payment better than others? To answer these questions, let’s take a look at why different dividend… [Read More]
Reader's questions and answers about stocks, the stock market, investing and value investing.
Want to ask a question that is bugging you? Just let me know using the contact form and I will reply and post an answer here.
View articles in other categories: Dividend Stocks, Large Cap Stocks, Mid Cap Stocks, small cap stocks, Macro-economic, Value Investing Tips, Business, Personal Finance, Investment Guide, Investment Definitions
If 98% of the Funds don’t Beat the Market, Why doesn’t Everyone just Invest in a Low Cost Index like S&P500?
The following question was asked on Quora If 98% of funds don’t beat the market, why do people still give their money to financial advisors and money managers? Why doesn’t everyone just invest in a low cost index fund that follows the S&P 500? Here is my response: This answer is in 3 parts so… [Read More]
Is Amazon like Berkshire Hathaway, Circa 1985?
I answered this question on Quora, here. The Question Is Amazon like Berskshire Hathaway, circa 1985? Already having grown incredibly, and likely to continue to grow dramatically? From my perspective it appears unstoppable…am I wrong or right? My Response I think your question boils down to Can Amazon turn into a well managed conglomerate like… [Read More]
How to Buy Pre-IPO Shares before a Company goes Public?
Investing in pre-IPO shares isn’t always easy. In most cases, the ability to purchase them will largely depend on whom you know.
However, it’s not impossible. There are several ways and methods one can invest in pre-IPO shares with a company that intends to go public.
What Happens to Your Stock when a Company Goes Bust?
Do you find the post useful? Please share Share4 Tweet0 It’s the part of being a stockholder that no one really wants to think about. But what does happen to your stocks if the company you invested in goes bankrupt? The good news is there is a possibility you could get some money back or… [Read More]
How do You Value a Business? Which Method do You Use and Why?
Do you find the post useful? Please share Share0 Tweet0 Value Stock Guide is listed as one of the top investing blogs on the planet for 2018 by The Acquirer’s Multiple I was asked this question recently. Valuing a business correctly depends on the state you find the business in, and this will differ for… [Read More]
Why does the present value equation appear to be more useful for the bond investor than for the common stock investor?
Do you find the post useful? Please share Share0 Tweet0 This question was asked on Quora If a company has a solid history of paying consistent dividends, either steady or increasing at a steady known pace, you can model the value of these dividend payments in perpetuity using the dividend discount model. The present value… [Read More]
Question: How do I start investing in the share market? How should one start if I have no prior knowledge of it?
Do you find the post useful? Please share Share0 Tweet0 This question was asked of me on Quora To start investing in stocks, read, read, read. As much as you can, read about the markets and how they work. We listed some excellent books below. Buy or borrow, just read them. You don’t need to… [Read More]