What You Have Control Over in Your Investing

What you have control over in your investing: Brokerage costs: don’t over trade or pay high commissions. Ownership costs: of products (such as mutual funds, etc.) keep them down. Expectations: be realistic, use historical information to your advantage. Risk: know how much capital exposure you have. Tax bills: maintaining year and longer hold times to … Read more

Collecting Rent From Stocks 101

Collecting rents from the stock market is easy. Income property ownership when purchased properly, so it generates a positive cash flow, can be a solid investment that over time produces wealth and pride of ownership.  Real estate is something tangible or a physical asset that can be touched and seen verses a share of stock … Read more

Durability

Investing requires the understanding of a few common components that determine the differences between businesses. These components are competitive advantage, management, cash, and margin of safety.  All of these components are measurable. In other words they can be measured against other businesses or the industry the business you are evaluating operates under. Here are my … Read more

Knowing Value

What is value?  Value as defined by the dictionary is “the regard that something is held to deserve; the importance, worth, or usefulness of something.”  They key words in this definition for the purposes in this article is “the worth of something.” Value investing focuses on the worth of a business.   Valuation is the … Read more

Value Investing Background

Value investing, is a strategy based on acting on the observation of a clear difference between current price and current value of an investment.  Ben Graham and David Dodd made this strategy famous in their 1934 book “Security Analysis.”  Ben Graham like many was wiped out in the great depression in the late 20’s.  He … Read more

Investing in What You Understand

Sounds simple doesn’t it?  Only put your hard earned money into investments the companies of the products that you use.  If understanding what you are investing in was as simple as knowing that the chocolate the company makes is what everyone likes then it would be easy to invest.  Unfortunately, there usually is more beyond … Read more