Investment Information

Technology, demographics and passive investing

Posted by on February 21, 2012 in Investment Information

When I first started this blog in 2007, the iPhone was two months from being released publicly, Facebook had allowed non students to become users the year before and high frequency trading was just beginning to take over most trading floors.  Today, as a result of the freer and faster flow of information due to [...]

Should credit card companies be sin stocks?

Posted by on February 14, 2012 in Investment Information

A sin stock is a term which refers to stocks which operate in businesses which are considered to be immoral or unethical. Sin stocks typically include companies in the alcohol, tobacco, weapons, gambling and sex industries. Maddeningly for the socially responsible investing set, studies show that sin stocks tend to outperform its counterparts of a [...]

Are some companies just naturally more profitable than others?

Posted by on January 31, 2012 in Investment Information

There are 6 large railways in North America (7 if you count Kansas City Southern as well). Canadian Pacific (CP) is the smallest by market cap and most inefficient among them (see my 2008 post on CP’s ranking among the Class 1 Railroads). Last year, hedge fund Pershing Square Capital Management bought enough shares to [...]

Three keys to saving more

Posted by on November 3, 2011 in Investment Information

Is the simple act of willpower, in and of itself, all that is required to become a better saver? In a recent book entitled Willpower, Roy F. Baumeister and John Tierney look at the concept of willpower in a world of indulgence and wonder if someone can indeed increase their willpower. A full review of [...]

Consumer protection and group buying

Posted by on June 14, 2011 in Investment Information

Group buying describes the practice of purchasing a good or service at significantly discounted prices if a minimum number of buyers make the purchase within a set period of time. Group buying sites typically send to subscribers a “deal of the day.”  Subscribers have the opportunity to purchase the deal by submitting payment information. If [...]

Why do entrepreneurs do so well?

Posted by on June 9, 2011 in Investment Information

The book The Millionaire Next Door found that being a business owner increases the probability of financial independence. Since the release of the book, the lazy analysis from that finding is “if you want to be rich, quit your job and be a business owner!” However, I have met as many broke and bankrupt business [...]

“It’s deja vu all over again”- the tech boom (and bust?) part 2

Posted by on June 7, 2011 in Investment Information

The group buying site Groupon filed paperwork with the SEC to launch as a publicly traded company under an initial public offering (IPO).  Hot on the heels of LinkedIn IPO’s and the much anticipated Facebook IPO, one merely has to substitute “information highway” (I feel so 1994) with “social media” and, to quote Yogi Berra, [...]

Is it time to passively invest in Canadian banks?

Posted by on May 31, 2011 in Investment Information

In the last few years, there has been a multitude of references to the “Big Five” Canadian banks as model of a stable banking industry (by market cap, the Big Five are: RBC, TD, BNS,  BMO and CIBC). There has also been multiple recommendations to invest in Canadian banks. While in years past, it may [...]

The problem with too much cash

Posted by on May 18, 2011 in Investment Information

Investors are caught in a bind. They fear the volatility of the equities market. But money market funds and high-interest bearing accounts are returning very low yields.  Caught between the fears of trading losses and the meager return of sitting still, we are all the proverbial deer in the headlights. But has the truck already [...]

If you hate mutual fund managers, why act like one?

Posted by on May 17, 2011 in Investment Information

In the 2011 world, you are seen as being late to the game if you report on a story one hour late. Our social media world is about who gets there first- regardless of its accuracy, truth or reliability. This may work fine if you work for a tabloid website but are average investors, bombarded [...]