Using Standard Deviations, Portfolio Correlations, and the Sharpe Ratio
I am a big believer in the importance of implementing statistics while investing. In particular, I find standard deviations, portfolio correlations, and the Sharpe ratio to be essential in managing risk. Too often, I hear of investors getting burned because they don’t perform their proper due diligence. It isn’t enough to pick the highest-performing stocks […]
Do you Trade Volatile Penny Stocks?
A common pitfall that I often see new investors fall into is that they get sucked into the “get rich quick” mantra that they think comes with the stock market. Unfortunately, they think that this means that they have to invest in volatile penny stocks because of the high risk, high reward that comes with […]
The Best Way to Invest in Insurance Companies: How to Analyze Their Stocks
Insurance, one of the necessary evils of today’s world, right? We all have to have it in case of that one day you will need it, health, life, auto, home, and on it goes. The big question is, how do I invest in an insurance company when I don’t understand how it works or how […]
3x ETF = 3x Gains? Evaluating the UPRO Stock Price History
I’ve found myself going down a bit of a rabbit hole lately with some of these leveraged ETFs and it’s really been taking up a lot of my time! I thought, “Ok, Andy – just sit down and do the math yourself”, so that’s what I did – let’s take a look at the history […]
What’s The ARKK Stock Holdings that Has Everyone Drinking the Kool-Aid?
I don’t normally spend an entire blog post just talking about a certain company or ETF, but I am making an exception to the rule to talk about this specific ETF. I have heard A TON of news about it lately and you all know me – I’m not one to just buy-in without doing […]
Valuing Young Companies: A Complete Guide Using a DCF (FCFF) Model
Updated 12/12/2023 Valuing a young company is one of the more difficult tasks in valuation. Trying to pin a value on a young company, startup, or idea business is difficult because of little or no revenues and large operating losses. Other challenges are the short financial histories of young companies, plus the dependence on outside […]
How to Make Money with Stocks by Understanding Risk vs. Reward
Myth #8 that Tony Robbins outlines in his book is that “You gotta take huge risks to get big rewards”. I’m sure that many of you have heard a phrase very similar to this, but is it true? Let’s break down the true risk vs. reward of investing in the market! Personally, I love the […]
I am BROKE! How much can you make from stocks in a month?!
I oftentimes am asked by people how much you can make from stocks in a month? Truthfully, it’s a question that scares me a lot because I instantly think that the type of people that ask that sort of question might be looking at investing in stocks as some sort of “get rich quick” scheme […]
Tips for Conquering the Narrative Fallacy in the Stock Market
Every stock carries a narrative. Hopefully this narrative has been borne from numbers. But, two people can look at the same set of facts and come to opposing conclusions—this is the basis of the narrative fallacy. Narratives are intrinsically powerful to us mere mortals because we all want to make sense of the world. Seeing […]
Traditional Overdiversification Wisdom is Bunk. 15-20 Stocks= Not Enough.
Everything you’ve ever heard about diversification, and overdiversification, is wrong! The conventional wisdom is that any portfolio over 20- 30 stocks is overdiversified. This is wrong! The traditional idea about stock portfolio diversification is that anything more than 20 stocks, and your portfolio will track the market. In other words, if you’re buying more than […]
