Investor behavior is probably the most important factor for investment success. Warren Buffett's investment behavior advice will help to increase success.
What is a good balance sheet and is book value equal to the intrinsic value? Ultimately, the earnings power of the assets is what counts for intrinsic value.
Here we look at building your stock portfolio. First you need to make sure that you understand investment risk and are able to select great businesses. Advice from some of the best investors will help to build a stock portfolio that will grow in value over time. Furthermore, we will explain that a focused portfolio is most likely to beat the market over time.
Investment risk is commonly understood in terms of volatility in the world of Finance. This academic definition of investment risk is fundamentally different from the view of Warren Buffett on risk. This article discusses the differences in these viewpoints on investment risks and explains why it is essential to understand investment risk correctly.
The P/E multiple is often used for stock valuation. This is understandable, as it is relatively easy to use to screen for a potential investment. However, a good understanding of the benefits and pitfalls of multiples is vital before you buy a company solely based on its P/E ratio.
ETFs (exchange traded funds) that replicate a stock index like the S&P500 are very popular. Index funds are the best investment for most investors according to Warren Buffett. This makes sense if you realize that most professional and expensive fund managers do not outperform the market. Some basic understanding of ETF index investing based on the book of John Bogle – The Little Book of Common Sense Investing and the advice of Warren buffet will help to successful invest in ETFs.
The path to financial wealth has been quite the same for hundreds of years. To get rich you need to acquire money, keep money and let money earn more money. The lessons in this article originate from the book The Richest Man in Babylon. A classic written in 1926 by George S. Clason.
This article discusses 6 categories that can be used to classify stocks and its investment expectations. Furthermore, we look at the most essential “need-to-know” per category.
Warren Buffett gave many insights about how he invests in stocks over the years. In the previous article we discussed the investing philosophy and investing principles of Warren Buffett. This …