Trailing Twelve Months (TTM): Why It’s Used and How to Use It
Updated 2/7/2024 When valuing a company, the primary imperative is to use the most up-to-date numbers we can find. Numbers such as prices constantly update in the markets. But the accounting inputs we use come from accounting statements such as the income statement, and those don’t update constantly. So what is the answer? The challenge […]
The Magic Formula to Beat the Market
Updated 1/5/2024 Joel Greenblatt owns one of the best investing records on Wall Street, generating over 40 percent compounded returns during ten years. In 2005, Greenblatt published his seminal book, The Little Book that Beats the Market, describing a method investors can use to beat the market, the Magic Formula. Greenblatt developed and tested the […]
The Top Performing Commodities Since 1947 (4 Tips for Investing In Them)
Post updated: 6/30/2023 Commodities go in-and-out of favor, moving up-and-down in supercycles. So how you know which commodities are the best to invest in? Using 75+ years of data, we will look at the top 3 commodities of the 7 decades, and then give 4 simple, practical tips for and researching and buying commodity stocks […]
Investing Lessons from Nick Sleep of Nomad Investment Partnership
Updated 9/15/2023 Generating true investment success remains rare, even more so the prospect of long-term success. Nick Sleep and his partner Qais Zakaria (Zak) generated those returns over decades, 18% over thirteen years. Most of you have never heard of Nick Sleep and his partner Zak, but if there were the Holy Grail of investing […]
Beginner’s Guide to Value Investing and Intrinsic Value, From the Top Investors
Updated – 12/6/23 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 […]
What are the Different Types of Mutual Funds, and What do They Mean?
Mutual funds are a great vehicle for growing your money. Keep reading to find out more about them and what types of mutual funds may work best for you. When you first began investing, you may have opened an investment account online and started to look through all the individual stock opportunities. That is certainly […]
What is the Cost of Capital and How to Use It
Updated 12/12/2023 “I’ve never heard an intelligent discussion about ‘cost of capital.’” The value of any company or investment is the present value of future cash flows, whether Microsoft, our home, or a piece of art. Part of determining the present value of future cash flows is defining the discount rate or hurdle rate to […]
The 3 Inputs for the Cost of Equity Formula
Updated 12/19/2023 The value of any financial asset is the present value of its future cash flows discounted to the present. That is the basis of any discounted cash flow model and part of valuing any company. Part of that analysis determines the cost of capital or discounting factor of those cash flows. There are […]
Explaining the Trailing Stop Limit and a Better Alternative
Updated 9/25/2023 A trailing stop limit is an order you place with your broker. It places a limit on your loss so that you don’t sell too low. But, the “limit” refers also to the type of order placed with the broker. It is different from just a trailing stop. We will discuss what a […]
The 2 Main Types of REITs and Their Risks and Rewards
REITs remain a key consideration when contemplating diversifying your portfolio. REIT, which stands for real estate investment trust, offers the ability to invest in real estate with more liquidity and diversification. Best of all, we have multiple types of REITs to buy, such as retail, office, or specialized ones. REITs also offer the benefit of […]
