Should You Use Your Employer’s 401k Plan?

You might recall the Halloween Horror story of 2014: your 401k plan manager gorging himself on your nest egg. Shudder… stop the madness, as Kevin O’Leary loves saying on Shark Tank. So, now you’re no doubt asking yourself: should I participate in my employer’s 401k plan, or should I consider other avenues of investing? Why use […]

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Gold Revisited

A short while ago, we took a brief look at gold as an investment. Since then, the gold price has mainly gone down, and it has reached the point where I, someone who doesn’t really believe in gold as an investment, am taking a hard second look. Why? Because maybe, just maybe, the gold price […]

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alpha beta

Alpha Beta Risk and Return

My friend Brian called me last year, very excited about a stock he bought the week before, because it had gone up more than thirty percent in that week. Curious, I asked for the details. It was exactly what I feared: he had been talked into buying a penny stock. Now, I root for the underdog as […]

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Baked in

Baked In And The Efficient Market Hypothesis

When you read discussions on companies and their stocks on places like Fortune, the Wall Street Journal and Seeking Alpha, you’re bound to come across the term “baked in” a lot. Here is a recent example of a headline which includes the phrase, and here and here are two more. So… what does baked in mean, […]

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mutual funds 2

Mutual Funds: The Ultimate Halloween Story

This is a series just made in Britain, . The accent is British, the names are British, and they quaintly refer to London’s financial district as “The City,” as if everybody in the entire world knows exactly who they’re talking about. (And then they have the nerve to call Americans arrogant. ) Don’t be fooled […]

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Analyzing companies

Analyzing Companies: One More Thing

Although this post focuses on analyzing companies for investment purposes, the basic thoughts apply to all investments. The Future You invest for the future. And all investing decisions require you to take a view, or form an opinion, about the future. Problem is: nobody knows the future. The good news is most things continue tomorrow […]

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Cash flow

Make Serious Money: Look At Cash Flow

Now that you know the difference between cash flow and earnings, it’s time to get to the meat of the concept, one easily overlooked by lazy investors. In fact, an accounting professor created a bit of a stir in 1996 when he published an article essentially saying lazy investors can be suckered by managements who […]

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