What Negative Net Income Means for a Company; Number of Years [S&P 500]
The facts behind negative net income are clear. Negative net income is when a company’s expenses are larger than their revenues. Simple as that. What’s maybe less clear are the implications to a company with negative net income. It’s some of these questions and more I’ll try to answer for everyone today. But first let’s […]
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 […]
You Will Fail Trying to Get Rich Quick. I Promise.
One of the biggest mistakes that I see with new investors is that they start off with a mindset that they can get rich quick. Sure, you might get lucky and hit it big with a couple stocks, but that’s not going to make you get rich quick. The question that I ask is – […]
Understanding Run Rate and Applying it to Your Stock Investing Strategy
The term “Run Rate” is one that you quite possibly might have heard before, but many people do not know what it means. It is a term that frequently is said on shows like Shark Tank but also oftentimes used in the business world. Essentially, run rate means that you’re taking the current market conditions […]
Which is Better – SPY or an Equal Weight S&P 500 ETF?
Lately there has been a lot of talk about ETF investing and how flawed some of the strategies can be, so I really wanted to take a little bit of a deep dive to see if this was true or not. The biggest issue I hear is that so many S&P 500 ETFs are weighted […]
Want to Retire Early? You Better Understand the Importance of Investments!
If you’re even thinking about retiring early, or really even retiring at all, then the importance of investments absolutely cannot be understated. If you’re struggling to see how investing can play into your ability to retire early then don’t worry – I am here to help! I personally know people that have piles and piles […]
How Amortization of Intangible Assets Works; When it Unleashes Higher ROIC
The amortization of intangible assets can sometimes be hidden in the consolidated financial statements because amortization is grouped in with depreciation. But as the economy increasingly becomes more knowledge and intangible asset-based, investors need to more closely understand the accounting behind the amortization of intangibles. Depending on the intangible asset in question, a large amortization […]
4 Types of Company Growth Rates and How to Calculate Them
Investors demand growth from companies. Wall Street loves growth. But how is company growth defined exactly? In this post we’ll examine 4 separate types of company growth rates, and when they are used depending on the type of company. First, let’s start with the bottom line, or Earnings Per Share. 1—Earnings Per Share Growth Earnings […]
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 […]
