Understanding Share Buybacks and Capital Allocation

Buybacks are an important part of the investing world. Yet, many people misunderstand them. The S&P 500 – the largest 500 profitable businesses publicly traded in the United States – spent a collective $795 billion on buybacks in 2023 and $922 billion in 2022. Otherwise known as share repurchases (the terms are interchangeable), politicians and […]

Decoding Microsoft’s Financials: A Beginner’s Guide to Income Statement Analysis

The income statement is a powerful tool in financial analysis. It offers insights into a company’s performance over a certain period. By examining the financial statements of a company like Microsoft, we can uncover the nuances and strategic insights hidden within them. This article aims to demystify the process of analyzing an income statement, using […]

The 7 Types of Capital Allocation and What They Mean for Shareholders

Updated 9/3/2023 “Capital allocation is a senior management team’s most fundamental responsibility. The problem is that many CEOs don’t know how to allocate capital effectively. The objective of capital allocation is to build long-term value per share.” Michael Mauboussin As we will see, job number one for CEOs remains capital allocation because those decisions drive […]

Beginner’s Guide to the Yahoo Finance Numbers (Updated)

Updated 7/12/2023 Let’s assume you are an absolute beginner when it comes to using ticker systems like Yahoo Finance. The world of stock investments might seem confusing and overwhelming, with plenty of symbols and slang. Don’t worry. I’ve broken down the basics to the stock market before, with my beginner’s guide having been viewed over […]

Stock Market Cycles: How to Analyze and Profit

Updated 7/24/2023 “Warren Buffett tells us, ‘The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.’” ― Howard Marks, Mastering The Market Cycle: Getting the odds on your side Stock market cycles, represented by the bear and bull markets, ebb and flow through time. Investing during […]

NEWSFLASH: Data Showing That It’s OK to Buy High, Sell Low

Would you rather buy low, sell high, or buy high, sell low? Obviously, we’d all like to buy low and sell high, but sometimes that desire makes us believe that doing the opposite is so wrong. Well, today, let’s debunk that idea using real data from the S&P 500. I think you’ll find this very […]

Handy Andy’s Lessons – 5 Tips to Becoming a Great Stock Picker

So, you’re ready to move up to the big leagues and become a stock picker? That’s what I like to hear! Honestly, it can be difficult to invest in individual companies. But I am here to help try to eliminate some of the stress of the unknown for you. Click to jump to a section: The Fear […]

Should I Reinvest Dividends? Handy Andy’s Lessons!

If you’re asking me, “should dividends be reinvested?” I am telling you that the answer is always a resounding YES! Now, if you’re asking me if those dividends should be reinvested back into the same stock that earned those dividends, that is a much different question! But don’t worry, I’m here to help cut through […]

What are Quality Stocks? Do They Outperform? What are the Pitfalls?

Updated – 11/3/23 Quality stocks are a popular type of stock market factor. Quality stocks are generally defined as businesses with above average growth and lower risk (of bankruptcy). Based on these definitions, it would sound that quality stocks are always the best ones to own. But that is not always true. As with everything […]

Learn the art of investing in 30 minutes

Join over 45k+ readers and instantly download the free ebook: 7 Steps to Understanding the Stock Market.

WordPress management provided by OptSus.com