Your Essential Beginner’s Guide to the Forward Price to Earnings (P/E) Ratio
Forward Price to Earnings, or Forward P/E, is an easy ratio for estimating how expensive a stock is compared to its projected (“forward”) earnings. Similar to the Price to Earnings (P/E) ratio, it gives investors an apples-to-apples comparison for every stock in regards to its profitability (earnings) and stock price. The P/E is a common […]
The 8 Stock Market Secrets to Success That I Wish I Knew When I First Started
Updated – 12/14/23 To get to the secret of success in the stock market takes just a few easy to remember, short phrases which are mostly well-known by seasoned investors. Some of them can be easy to forget—that’s why it’s good to go back to the basics. If you’re struggling with your performance in the […]
Beginner’s Guide: 7 Steps to Understanding the Stock Market
Updated: 4/06/23 This easy-to-follow beginner’s guide will help you learn how to invest in the stock market. We’ll be leaving out all the confusing Wall Street jargon and explaining things in simple terms. In this post, we will cover the 7 following categories for understanding the stock market: 1. Stock Market Basics: Why to Invest2. […]
The Intelligent Investor: Is it Outdated? Is it for Beginners? Should I Read it?
Edited 3/24/2023 Warren Buffett started learning about investing when he was seven or eight. I know a late bloomer. Buffett’s father started a small investment firm, and a young Warren started his investing journey. He picked up different books lying around, becoming bitten by the investing bug. Fast forward to eleven years old, and Buffett […]
IFB224: What Happens to Your Shares in the Event of Big Changes, CEO Leaves, Acquisitions, or Other News?
Welcome to the Investing for Beginners podcast. In today’s show, we discuss: *What happens to your company’s shares in the event of a big change, for example, a CEO change, acquisition, or bad news? *Why do we own shares of Berkshire Hathaway when they don’t pay a dividend? *The benefits of different brokerage accounts and […]
The 3 Main Types of Securities, and Their Returns Over Time
Updated 4/28/2023 “Never depend on a single income; make an investment to create a second source.” Warren Buffett Many know that investing remains one of the best ways to grow our wealth, but do we know what investment vehicles we have available? Everyone is familiar with stocks, some are familiar with bonds, and most are […]
Beginner’s Guide to Finding High ROIC Stocks Anytime You Want
Updated 5/4/2023 Investors target high ROIC stocks for their portfolio because highly efficient companies can sustain higher long-term growth. Companies with a high ROIC tend to be better investments than companies with a low ROIC, but not always. The price you pay matters, and ROIC can be manipulated to an extent. In this post, I […]
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, […]
Share Based Compensation Expense – How to Locate it in the 10-k
Today, share-based compensation issued to employees continues as one of the more disruptive finance topics, and some C-suite managers have abused their positions. Those behaviors have led many in Congress to believe that this type of compensation harms investors and employees. The idea of a “golden parachute” remains reviled and looked down on. In most […]
What is a Def14A Statement and Why is it Important for Investors?
Updated 12/12/2023 Did you know that Warren Buffett made $380,000 in 2020, of 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, which is mind-boggling. […]
