April 2007

Protect your assets: best defensive stocks

Posted by on April 30, 2007 in General Information

The Dividend Guy Blog had a recent entry about whether recent gains in the market are a good or bad thing. If you have some of the same concerns or that the market dip today will continue, I found this from some research from Thomson Financial: best long terms earnings growth by sectors in the [...]

Become Rich!

Posted by on April 27, 2007 in General Information

Fortune Magazine published a survey outlining how households with investable assets of between $1 mil-$10 mil invest their money by asset allocation as of 2006. The results are: 45% domestic equities 15% bonds 13% cash 11% international equities 7% investment real estate 5% private equity 2% other 1% hedge fund 1% commodities A couple of [...]

About Me and the Finance Company

Posted by on April 27, 2007 in Uncategorized

I have alluded to this before but through a series of strange accidents, this blog is about primarily two things: 1. Thickening your wallet; financial musings from an advisor to businesses; and 2. Building a financing company from scratch with the general public as investors Some of the financial blogs that I read have been [...]

Stock Investing: A Summary

Posted by on April 27, 2007 in Investment Strategy

I hope you noticed a few things about my list of what I look for in stock investing: The non-technical factors outnumber the technical factors- at the end of the day, its all about the KISS principle with me. If a company is doing well on main street (the non-technical analysis), the technical analysis, as [...]

Stock Investing: Technical Analysis Part III

Posted by on April 27, 2007 in Investment Strategy

Look for company’s with high return on equity (ROE) ratios ROE means how well a company is using your investment- in other words, for every dollar you invest, how much can the company make? The higher the number, the better. I am not going to attempt to break down how ROE is calculated. It is [...]

Stock Investing: Technical Analysis Part II

Posted by on April 27, 2007 in Investment Strategy

Invest in a company with increasing “net cash provided by operating activities” Before I explain my logic, here is my 30 second crash course on reading financial statements. There are three types of statements every publicly traded company produces: Balance sheet: balances assets against liabilities (the difference is the total equity in the company) Income [...]

Stock Investing: Technical Analysis Part I

Posted by on April 26, 2007 in Investment Strategy

If in doubt, buy a dividend stock, preferably a growing dividend stock. Proof is in the pudding; dividend stocks beat the market and growing dividend stocks do even better. The following is courtesy of RBC Capital Markets S&P 500 Total Return: Last 10 Years (to Feb. 15, 2007) S&P 500 Non-Dividend Payers: 6.3% S&P 500 [...]

Stock Investing: Common Sense Analysis Part I- Explained in Better Terms

Posted by on April 23, 2007 in Investment Strategy

I found this quote on-line from www.money.com. Fortune Magazine reporter Katie Benner interviwed the managers of Hodges Fund (5 year annualized return of 18.8% according to Moringstar). In response to a question about investing strategies for a unpredictable 2007 market, the fund manager answers: “We’re a big proponent of pricing power. What allows a company [...]

Stock Investing: Common Sense Analysis Part V

Posted by on April 21, 2007 in Investment Strategy

Do not invest any money you are not willing to lose After all that non-technical analysis, you still have to be willing to lose it all if things don’t go well. Buffet’s first rule for stock investing is “don’t lose money” but it pre-supposes the assumption that you will invest in the first place. If [...]

Stock Investing: Common Sense Analysis Part IV

Posted by on April 21, 2007 in Investment Strategy

Don’t invest in anything trendy As I may have mentioned before, I am in the business of giving advice to other businesses so I see a lot of businesses. The “trendy” businesses I see either do either extremely well or completely flame out in months. There doesn’t seem to be a middle ground. If you [...]