Archive for the ‘Food for Thought’ Category
Technical analysis is the polar opposite of fundamental analysis, which is the basis of every method explored so far in this tutorial. Technical analysts, or technicians, select stocks by analyzing statistics generated by past market activity, prices and volumes. Sometimes also known as chartists, technical analysts look at the past charts of prices and different [...]
CAN SLIM is a philosophy of screening, purchasing and selling common stock. Developed by William O’Neil, the co-founder of Investor’s Business Daily, it is described in his highly recommended book “How to Make Money in Stocks”. The name may suggest some boring government agency, but this acronym actually stands for a very successful investment strategy. [...]
Income investing, which aims to pick companies that provide a steady stream of income, is perhaps one of the most straightforward stock-picking strategies. When investors think of steady income they commonly think of fixed-income securities such as bonds. However, stocks can also provide a steady income by paying a solid dividend. Here we look at [...]
Do you feel that you now have a firm grasp of the principles of both value and growth investing? If you’re comfortable with these two stock-picking methodologies, then you’re ready to learn about a newer, hybrid system of stock selection. Here we take a look at growth at a reasonable price, or GARP. What Is [...]
In the late 1990s, when technology companies were flourishing, growth investing techniques yielded unprecedented returns for investors. But before any investor jumps onto the growth investing bandwagon, s/he should realize that this strategy comes with substantial risks and is not for everyone. Value versus Growth The best way to define growth investing is to contrast [...]
Value investing is one of the best known stock-picking methods. In the 1930s, Benjamin Graham and David Dodd, finance professors at Columbia University, laid out what many consider to be the framework for value investing. The concept is actually very simple: find companies trading below their inherent worth. The value investor looks for stocks with [...]
Fundamental analysis has a very wide scope. Valuing a company involves not only crunching numbers and predicting cash flows but also looking at the general, more subjective qualities of a company. Here we will look at how the analysis of qualitative factors is used for picking a stock. Management The backbone of any successful company [...]
Ever hear someone say that a company has “strong fundamentals”? The phrase is so overused that it’s become somewhat of a cliché. Any analyst can refer to a company’s fundamentals without actually saying anything meaningful. So here we define exactly what fundamentals are, how and why they are analyzed, and why fundamental analysis is often [...]
When it comes to personal finance and the accumulation of wealth, few subjects are more talked about than stocks. It’s easy to understand why: playing the stock market is thrilling. But on this financial roller-coaster ride, we all want to experience the ups without the downs. In this tutorial, we examine some of the most [...]
As I mentioned in previous post I have been trying to get back into stock market since then. My desire to trade or invest has grown considerably in the last few weeks. Especially after I read my most favorite book the second time. It is “How I Made 2 Million Dollars in the Stock Market”. [...]
A DVD that is now available in Sri Lanka DVD stores, a must watch movie for those interested in the financial markets. The story – The subject of Inside Job is the global financial crisis of 2008. It features research and extensive interviews with financiers, politicians, journalists, and academics. The film follows a narrative [...]
The content of the book Value Investing already exists in its predecessor Security Analysis. Value investing (which differs from the speculative strategies like “momentum trading” or “technical analysis”) objects to the economic assumption that the stock market is efficient. Efficient in this context means the market as a whole always knows the important information about [...]