Researching stocks occupies most of a value investor’s time, and when done well, it can give him an edge over the market. The following are the benefits a value investor receives when he has a solid process to research stocks. Make less mistakes Access dependable data Think through scenarios, or mental models, Make confident decisions,… [Read More]
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I answered this question on Quora here Let’s take an example of 100% daily returns in 2 different scenarios: A penny that gets 100% return every day, but the returns are not re-invested, will result in 29 new pennies at the end of 30 days. The wealth grows from 1 penny to 30 pennies. A… [Read More]
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]
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]
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]
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.
Do you find the post useful? Please share Share0 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]
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 every business. A proper and complete answer to this question… [Read More]
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]
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]