How to Use Jensen’s Alpha to Measure True Investor Performance
Measuring investment returns continues as something that everyone looks to do when investing in the markets. The search for “alpha,” or market-beating investment returns, remains the goal of every investor. One of the easiest ways to determine your investment return or alpha is Jensen’s Alpha method. This formula will enable investors to measure their returns […]
Beginner’s Guide: Value Investing, Intrinsic Value, Top Investors
Value investing is all about finding stocks trading at a discount to their intrinsic value. Investors have used this strategy for decades to find outsized returns; the very best have outperformed the market with this strategy. In a 90 year long study done by Merrill Lynch, it was determined that value stocks returned an average […]
Starting an Investment Firm: LLC, Limited Partnership, or Incorporate?
As an investor for over 9 years and LLC co-owner for over 5, I’ve thought a lot about utilizing my passion for investing in the most optimal way. Maybe you’re thinking of starting an investment firm, wanting to invest on your own or on behalf of others. Well, there’s so many ways to do it, […]
Understanding Why a Company may Decide to Complete a Share Buyback
Companies will often take part in a share repurchase program. However, the reasons for the share buyback are often unknown and can lead to different outcomes. Have you read a company’s quarterly update or listened to their earnings call and heard of a plan for stock buyback or a stock repurchase? When you take a […]
What is a Def14A Statement and Why is it Important for Investors?
Did you know that Warren Buffett made $380,000 in 2020, which $100,000 was his salary, and the balance was security protection for him and his family? He received zero in bonuses, stock options, and stock. That’s right, one of the richest people in the world receives $100k a year, mind-boggling. How do I know this? […]
How It’s Possible to Begin Investing With No Money
Although it’s not easy to start investing with no money, it certainly isn’t impossible. Keep reading for tips to start your investment accounts now! There is one saying that you hear many people allude to, and that is, “it takes money to make money”. And while that may be somewhat true, it doesn’t mean you […]
Is Value Investing DEAD?? The 2 Reasons YES… and The 2 Reasons NO.
With growth investing absolutely destroying the market lately, people are wondering if value investing is dead. After all, the post-internet economy is much different than the pre-internet, value “hey days”. Just look at the biggest and most popular stocks—Facebook, Apple, Netflix, Google… and don’t forget Amazon and Microsoft. All of those have several things in […]
13F Filings: The Easy Way to Find Awesome Investment Ideas from the Greats
There is a place on the internet where you can get a detailed portfolio snapshot of the world’s greatest investors, all regularly and for free. These documents are called a 13F filing, and they are found at SEC.gov. Using the 13F filing is easy and free, so you can find what some companies your favorite […]
7 Compelling Arguments for Dividend Reinvestment vs a Payout in Cash
Investors might think that the income stream from dividend payouts are the best part of buying dividend stocks. But taking that cash instead of reinvesting it leaves serious stock market returns on the table. A solid dividend reinvestment plan (also called DRIP) is vastly superior to taking a dividend payout as cash for most investors. […]
Conquer Investment Bias with These Simple Mindset Shifts
All humans have inherent biases. It’s just decoded into our DNA. That said, is there one more costly to us than an investment bias? Most people are investors at their core. If you have a 401k, you are an investor. And all people are human beings, with biases. So, there are many people who are […]
