Category Archives: Investing 101

The Case For And Against Buying More Stock

During September, the NASDAQ 100 has dropped. And kept dropping. Of the gains since March, September has seen about 10% evaporate. After the selling started, it was too late to sell. If you didn’t, you really should have listened to me earlier when I said cash was king. But I’m not about I told you… Read More »

Excuse Me… Why Sell Stocks Into A Bounce?

Here is something that Jim Cramer on CNBC said last week: “I’m telling you to have some discipline. I expect this market to have a near-term bounce, and discipline means you should sell something into that rebound…” (CNBC) Honestly, this assumes that the market will resume its selloff, which it very well could. But what… Read More »

Welcome To The Tech Stock Selloff

Happy Memorial Day. Today we solute our men and women in uniform. Our country would not be what it is without you. And of course I hope you are having a good day off work and off staring at the market changes to your 10 stocks. Last Thursday and Friday saw a selloff of tech… Read More »

How To Figure A Discounted Net Present Value

Discounted net present value is the way to arrive at a target share price of a stock. It is the most mathematical thing we do as focus investors. Usually we calculate a target share price once we have decided that the company is a good one to invest in. You can use a spreadsheet on… Read More »

Are You Really Up For Stock Investing?

Anybody can invest in the stock market, yes. But should any given person? There are traps to watch out for. If you are in it to get rich quick, you will likely lose. Why? Because you probably won’t build up an emergency fund first. You’ll put a chunk of money in your brokerage account. Invest… Read More »

What To Do When Stock Prices Don’t Move As They Should

You did all of your due diligence on a company. You looked at cash and debt. You liked its profit growth or revenue growth. You figured out a reasonable price for the stock. But immediately after you buy the stock for a fair price it declines. Why? Benjamin Graham would say: “In the short run,… Read More »

Don’t Be The Dumb Money In The Stock Market

Smart money or dumb money. Truth is we are all somewhere in between. Including those that trade for a mutual fund or ETF. Or even professional stock analysts. To be dumb in stock market investing means that you trade based on information that has little relevance. For instance, what other traders say on bulletin boards.… Read More »

Why Buy Stock In An Unprofitable Company?

It is much easier to value a profitable company than an unprofitable one. Generally a company’s profit is its value to the shareholders. Of course, you could look at assets of a company in relation to its market cap. If assets are bigger, the company may be undervalued. Ok, so if profit is generally the… Read More »

How To Be Ready For The Next Stock Market Downturn

The unemployment rate is up. Dividends are down. Some companies are declaring bankruptcy. But the stock market is roaring. Make sense? The market will correct in a big way. It’s coming. I don’t know when, and that’s not important. Here is what you can do to be ready. If You Are Within Five Years Of… Read More »

What Do You Want In A Business Of Your Own?

You could say that I am a business owner. I have my own corporation that does technology consulting for other companies. There is a problem with it though: I am my only employee. I trade my time for money. It is not the ideal business. So what is an ideal business and how do we… Read More »