A Financial Literacy Blog for All
A friend of mine really likes selecting stocks with a score, the Piotroski score in particular. Briefly, Professor Piotroski created a set of nine financial ratios that contribute to the score. If a company meets a certain criterion and has favorable results on 8 or …
Technical analysts select companies for their portfolios based on patterns in stock prices. That is, it allows them to enhance their process of picking stocks by using pictures. This approach is very different from some of the others I’ve discussed, as buy and sell decisions …
Many, if not most, financial advisers recommend accumulating wealth from a diversified set of investments including stocks. An investor can add stocks to her/his portfolio by purchasing stocks from an individual company or from buying mutual funds. With the stock market down double digits since …
Deciding at what price to buy a stock or other security is almost as hard as deciding whether to buy the security at all. There are many different approaches for deciding at what price to buy a stock. One of the ones I’ve seen discussed …
Financial markets have been more turbulent in the past few weeks than has been seen in many years, probably more volatile than has happened since many of you started being financially aware. You may be wondering what actions you should take. With the sense of …
Mutual fund and ETFs (exchange-traded funds) allow you to invest in securities without having to select individual positions. Instead, the fund manager makes the decisions as to when to buy and sell each security. As such, a fund is an easy way for new or …
Many investors create their own portfolios by picking stocks in individual companies. As discussed in my post on the basics of stocks, picking stocks in individual companies is one of several strategies for creating an investment portfolio. Alternatives to picking stocks in individual companies include …
Investing for dividends is one of many strategies investors use to identify stocks for their portfolios. Among the strategies I identified in my post on what you need to know about stocks, this is not one that I have ever used. So I reached out to …
Reading financial statement guides many investors in their decisions to buy and sell stocks. Investors who focus on financial fundamentals look at recent financial statements in the context of other trends to estimate how much a company’s future profit might grow. High-dividend yield investors need …
Stocks are a common choice for many investors. There are two types of stocks – preferred and common. Because most investors buy common stocks, they will be the subject of this post. I’ll talk about what you need to know about stocks before you buy …