Tutorials
The Most Contrarian Idea I Have
Any reader of my blog recognizes that I generally have an affinity for consumer products and retail facing stocks. In this recession, I’ve also become quite the fan of dividends as manifested in my recent investments – GE, VLO, MO, and LINE. As such, this investment idea probably comes as no surprise – Hotel REITS. [...]
read more »An important metric when investing during a recession
Over the last year, “cash is king” has become the modus operandi for companies everywhere. In an environment where revenues are declining and credit markets are difficult to access, the conservation of cash is an important aspect of maintaining the business and living through the recession. To gain a better view of the cash flow [...]
read more »The best retirement advice you’ll ever get
Most 401k retirement accounts limit you to the purchase of various employer specified mutual funds or ETFs. If you’re like me and have spent most of your time learning how to pick individual stocks, the idea of having to be forced into seemingly over-diversified funds can be a bit disappointing at first. Passive indexing, however, [...]
read more »A Retail Investing Framework
Generally speaking, I see myself as a value investor. Why then, would am I so often looking towards retailers and generally consumer facing businesses for my best investment ideas (see: A Retail Reversal and Irrational Retail Valuations)? After all, many of the best retail stocks are those that rely on growth to provide shareholder return. [...]
read more »The trend is your friend, even in this market
A reader of my last post on Google’s current stock performance, took issue with my statement: It is interesting to note that, in the area marked in the above graph, all short term indicators were overwhelmingly positive just before Google’s swift and violent correction over the last month. The reader was clearly a technical analysis [...]
read more »When Diversification Fails
The above chart represents the return for nearly every combination of equity investments you could have made over the last year. No sector, style, world region or market cap escaped devaluing more than 25%. Compare this to the start of our last recession between 2000 and 2001. Just within U.S. equities, proper diversification likely could [...]
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