In a word – yes! Investing is one of the more proven ways to build wealth over time. The better question is – Why is investing in stocks a smart move financially? The answer to this question has to do with the long-term growth rate of the stock market and the power of compounding returns. […]
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Understanding Risk When it comes to investing, it’s extremely important to understand risk. Pretty much every financial asset’s price depends on risk to some degree. When dealing with individual stocks, the risk is how much the price changes over any given period. One way to measure a stock’s price movements is by looking at its […]
Most people equate Berkshire Hathaway to Warren Buffett and while it’s true he has owned the entity since the 1960s, his portfolio expands far beyond one company. Buffett has used Berkshire Hathaway as a way to acquire countless other companies throughout the years. Based on the company’s most recent SEC filings, it currently owns over 200 other companies. Here are ten companies that you may […]
You’ve got to know when to hold ‘em Know when to fold ‘em Know when to walk away And know when to run Who knew that Kenny Rogers gave such great investing advice? When most people think about investing, they focus on the buy side. The common thought is to buy low and then wait […]
Can you really trust investment results? I recently read How Not to Be Wrong: The Power of Mathematical Thinking by Jordan Ellenberg and while my wife still thinks I’m wrong quite a bit (I disagree of course!) the book contained a great story that should act as a cautionary tale to all investors. Baltimore Stock […]
Someone asked on Quora for advice on resources for getting started on investing in stocks. This is a common question many people have since a lot of people want to invest, but are scared to start for fear of losing money. Since investing, when done properly and responsibly, is a great way to build wealth, I […]
New investors often ask, “How much money do you need to start investing?” So How Much Do You Need? Technically you need enough to open a brokerage account and buy one share of stock plus the commission. Some online brokers, like E*TRADE have a $500 minimum to open an account while TD Ameritrade has no […]
Compound returns or compound interest. We’ve all heard it used at one time or another, but what does it really mean and how can we use it to our advantage? What is compound interest? Essentially this principle deals with the time value of money. Essentially it’s why having a $100 to invest today is worth […]
Sell in May and go away. Many of you have heard or read this saying before when it comes to investing. The idea is based on the premise that the stock market typically does not perform as well over the summer when compared to the rest of the year. During this time of year, you’ll […]
Every day there are stories of startups paying employees in company stock. Many employees in established public companies also have the option to invest in the company’s stock either in their 401K plan or to buy shares on the open market. While conventional wisdom may be to invest in what you know, investing heavily in […]