markets

Interest Rates and Stock Values Truth Be Told

Introduction The idea that interest rates directly affect stock prices is a commonly held belief among many investors.  There are some that even go as far as to say that the only reason the stock market is up is because interest rates have been artificially kept low by the Fed.  With this article, I’m going …

Value Investing Is A Long-Term Strategy and Should Be Judged Accordingly

Introduction Almost by definition, value investing rarely performs well in the short run.  This is especially true when you are in a strong bull market like we’ve been in since March 2009.  Most companies as represented by the S&P 500 are currently trading at fundamental multiples that are significantly above historical norms.  Below is a …

This is How You Can Beat the Market Without Fail

Introduction With this article I am going to present several ways that investors, especially retired investors, can beat the market without fail.  However, what I will be presenting may not be what you are expecting, particularly if you have a narrow notion of what beating the market means.  In other words, one of my primary …

Investing Is Hard Enough: Here Is How to Avoid Making Obvious Mistakes

The Key to Avoiding Obvious Mistakes Understanding how to value a business is the key to avoiding making obvious mistakes when purchasing or selling common stocks.  When you know what your investment is worth, the market cannot take advantage of your gullibility.  When you don’t know what your investment is worth, markets can easily influence …

The Right Way to Value Growth Stocks: Part 3

 Introduction In part 2 of this series I focused on how to value slow and moderately growing businesses. In this article, Part 3, I will shift my focus on how to value faster growing companies (growth stocks).  My definition of a fast grower (growth stock) is one that has consistently compounded earnings at 15% per annum or …

For Long-Term Investors Only: It’s A Market of Stocks!

Introduction Since the beginning of April 2009, the Standard & Poor’s 500 (the stock market) has enjoyed one of the longest bull markets on record.  As a result, I am starting to hear from a lot of investors that they are becoming worried that this great bull market must soon come to an end.  As …