Some Questions To Ask Before Buying A Stock
Here are some questions I normally ask myself before making an investment decision:
1. What does this company do to make money?
2. Will these ideas make money consistently over the long-term? Read more
A simple way to normalize earnings.
A key task in value investing is determining the “normal” earning power of a company in any given year.
People use a variety of methods to do this, the most famous being Benjamin Graham’s average earnings from the company’s previous 7-10 years of operation. Read more
When it comes to measuring business value, the stock market is not a ratio scale.
What does this mean and why should any investor care?
Well, the stock market is a scale we use to measure business value.
But what type of scale is it and what exactly does it measure? Read more
The 3 pillars of value investing.
I’ve been reading some Graham and Buffett lately and thought I’d write a post about what both call the fundamentals of value investing.
1. You are buying a business not a stock. Read more
Run! Run! The Banks Are Falling!
Been following bank stocks lately?
If so you probably don’t have much time to read this post since you’re either preparing for Armageddon and stocking up on canned beans and bullets or nursing that extreme case of whiplash you’ve picked up by watching these prices gyrate for the past week (ice helps; bullets are expensive as hell these days).
Since the Securities and Exchange Commission (SEC) is putting the smack down on folks [1] (you think they’ll fine Senator Schumer for not just writing a letter of concern to the Office of Thrift Supervision about IndyMac but then leaking the damn thing to the press to really get this party started?),[2] I’m not going to mention any other company names in this post. Read more