An In-depth Guide to the Theta Gang Wheel Strategy
Not long ago this blog featured different trading strategies that utilize the Theta Gang mindset of selling options for premium. One strategy in particular that is becoming much more mainstream in the options trading world is “The Wheel Strategy”. This strategy utilizes selling options to collect weekly premiums while keeping a very low risk profile. […]
Degree of Financial Leverage (DFL) – CFA Level 1
The degree of financial leverage (DFL) is not to be confused with the more popular balance sheet metric, financial leverage. While they have strong similarities both calculating risk (and reward!) from the use of debt, they go about measuring that risk in two different ways. Unlike the balance sheet metric financial leverage, the “degree” of […]
Stock Market Basics: 25 Practical Guides for Learning about Stocks
The following is a list of our most influential posts and guides in the Stock Market Basics category. We hope you’ll find these lessons to be incredibly valuable and most importantly, take action on what you learn to create wealth in your life. A list of essential posts on the basics of the stock market: […]
How to Use Jensen’s Alpha to Measure True Investor Performance
Updated 1/5/2024 Measuring investment returns continues to be something everyone looks to do when investing in the markets. The search for “alpha,” or market-beating investment returns, remains the goal of every investor. Jensen’s Alpha method is one of the easiest ways to determine your investment return or alpha. This formula will enable investors to measure […]
IFB177: Unemployment Benefits and Roth IRA, Coca-Cola and Dividend Aristocrats
In this listener Q&A episode, Dave and Andrew tackle some key, top-of-mind topics that investors are thinking about during this post pandemic time: “Can my daughter contribute her unemployment benefits to a Roth?” How Dave and Andrew feel about Coca Cola’s stock What to do when facing 52 week highs or 52 week lows The […]
How to: Excess Return Model for Valuing Financial Stocks
Valuing banks, insurance companies, and investment banks are among the more difficult challenges in valuing any business. Most investors opt for relative valuations that use multiples to compare value from one to company to another in large part. There is nothing inherently wrong with this strategy, but sometimes comparing multiples leads to overvaluation; if the […]
Avoid Value Traps by Understanding Various Valuation Multiples by Industry!
One of the hardest things to do when investing is figure out the proper value for a company. Sure, “buy low, sell high” sounds easy enough, but with differing valuation multiples by industry, it’s not just a blanket process that you can apply to all companies that you look at. When I first started investing, […]
Reason #1 to Invest in the Stock Market? 100 Years of Makin’ Money!
Do you like makin’ money? That’s what I thought! Yes, we all do! And guess what – the stock market has 100 years of history doing nothing but making money for people. At the end of it all, that’s why any of us invest in the stock market. Sure, we might do it so that […]
Looking to Invest in Emerging Markets? Start with the MSCI World ETF (ACWI)!
If you’re coming here from my blog post about Global Equities Momentum to learn more about a MSCI World ETF, welcome! If not, I highly recommend checking it out so you understand how the proper utilization of this ETF is so incredibly important! Basically, Global Equities Momentum (GEM) relies on the utilization of three different […]
MLP Valuation – Taxes and Metrics for this High Yielding Investment
Master Limited Partnerships, also known as MLPs, are a great vehicle for income investors, similar to REITs, in that they distribute the majority of their earnings in the form of dividends. However, not many investors are familiar with these types of investments, let alone how to conduct an MLP valuation. Dividends and the search for […]
