Deciding which stocks to invest in isn't an easy quest. Whether you're investing for dividends or capital growth, you don't want to overpay for the shares you buy. One way you can look at how cheap or expensive a stock is, is to look at the stock's price earnings ratio or PE ratio for short. Let's take a closer look at how to calculate this and how to interpret it…
How to calculate the PE rati... ››› more
If some of the shares you own are performing very well, it can be hard to feel overly happy about it. Yes you're happy the share is performing. But in the same breath you want to sell and run. You don't want to let go of that potential profit. So what should you do if your shares are hitting all-time highs? You need to keep calm and hold on. Let's take a look at why…
New highs are good news
... ››› more
Warren Buffett is famous for his astounding stock market investment success over the years. He's the world's fourth richest person, with a net worth of over $52 billion. Every year, in his letter to the shareholders of Berkshire Hathaway, he provides snippets of insight into his investing success. Here are four tips that you can take from his most recent letter to help boost the success of your st... ››› more
“Francois, my stock has been dropping in the past month, what should I do?”.
Stocks crashing are an inevitable part of investing... It's a risk you take every day that you're invested in the market.
It's what you do when this happens will have a huge effect your long-term investing success…
But before I tell you what you SHOULD do when your stock crashes let's first look at what you... ››› more
The emotions that play on your investment decisions can have a huge detrimental impact on your investment success. Fall prey to them and you're sure to lose money. So how can you beat your emotions to stop them playing havoc with your investing decisions? Read on to find out how…
Making money from investing sounds easy
But the fact of the matter is investors struggle, Phil Oakley in Money W... ››› more
In the world of investing, there are a multitude of different financial ratios analysts use to try and whittle out winning shares. One of the most commonly used is the price earnings (PE) ratio. But what does is show you? And how can you apply it to your research? Read on to discover what you need to know about the PE ratio…
Why is the PE ratio so important?
The PE ratio is simply a shar... ››› more
While a share price can tell you how a company is run, it's not always a true reflection of its operational prowess. It's important that you not only focus on accounting earnings, but factors that drive earnings. So today let's explore one of the most important factors you should look at in your share selection process so you can add them to your investment strategy and find shares with the abilit... ››› more
When it comes to buying shares, you want to buy at a good price so you can hopefully sell at a profit in the future. But how do you value a share? Analysts' forecasts aren't always very reliable. So you need to do some calculations of your own to determine a share's value. Read on to find out how…
Become your own analyst
With so much data available online, it makes sense to become your ow... ››› more
If you're looking for an investment strategy to maximise on the potential profits of an investment, but without having to pay full whack for it, what can you do? Well you could look for investments with ‘warts'. By honing in on investments with ‘warts' that have a high probability of disappearing, you could get in at the right price. And make handsome profits in the process. Let's take a close... ››› more
It would be great if every share you bought rose in price. But unfortunately this isn't the case. In spite of all your hard research, one of the shares in your portfolio may start falling. So what should you do? Hold on and hope for the best? Read on to find out what to do…
All investors will have to deal with a falling share at some time or another
If one of the shares you own is on a down... ››› more
It would be great if an investing method existed that made money easily. Sadly this isn't the case. Yet some methods appear to make more sense and have a better track record than others. One method worth having a look at is Joel Greenblatt's. His method is all about buying good quality companies at cheap prices. Let's take a closer look at how this works…
How does Greenblatt’s method work?
... ››› more
At first glance, you might not think there are many similarities between boxing and investing. But surprisingly, there are many pearls of boxing wisdom that you can apply to investing. In fact, there are three crucial lessons you can learn from Mike Tyson. Let's take a look at what these are and how you can apply them to your investing…
When you’re looking for some mentoring about investing,... ››› more
Since the financial crisis hit, many investors are scared about losing large amounts of money in the stock market. But what if there's a way to build a robust portfolio that will stand up well if market mayhem strikes again? Read on to uncover how you can build a portfolio that should weather out any crisis…
There is a way you can invest that can help you shelter your portfolio should somethin... ››› more
In a number of ways, buying shares is the easy part. The hard part is knowing when to sell. But to protect yourself against losses and not banking gains, you need to have an exit strategy in place. And you should make sure you do this as soon as you buy a share. Let's take a closer look at why you should have an exit strategy in place…
A good investment consists of two things: A good entry pri... ››› more
This year, the stock markets have been on a volatile ride. Up one minute, down the next. But the market has been steadily climbing over the past few years. And the pessimists out there start to worry about then next big dip. But if a big dip does come along, what measures can you put in place to protect your portfolio? Read on to find out…
To protect your portfolio against the arrival of an un... ››› more