In this article, I will discuss how investors can use various ratios, yields, indicators, and an understanding of the current state of the market to recognize if the stock market is overvalued, fairly-valued, or undervalued. In short, this process involves looking at the S&P 500 P/E Ratio, the Shiller P/E Ratio, the Buffet Indicator, the […]
In this article, I will show you how to evaluate and compare mutual funds, regardless of the type or objective of the fund. This will help you compare similar mutual funds and decide on which mutual fund best suits your investment needs. This article will be particularly useful for fund evaluators, passive investors, and the […]
In this article, I will discuss the different types of mutual funds, and will provide examples for each mutual fund classification as well. This will help you decide on which mutual funds to invest in, regardless of your investment time horizon and goals as a hands-off investor. Note that all of the examples provided are […]
In this article, I will discuss the value of investing in gold as a hedge for your investment portfolio. In the process, I will cover why and how gold carries value, the purpose gold serves in an investment portfolio, and the different ways investors can buy gold. In addition, multiple charts and comparisons to the […]
In this article, I will show you how to find and screen for great dividend stocks. Afterwards, you can research these stocks further and determine an appropriate buy price range to invest in. At the very least, this article should uncover the many great dividend players and resources you may be missing, which can provide […]
In this article, I will discuss how you can accurately estimate the downside risk of a stock. Downside risk is the worst case scenario for a stock. It represents what could happen to a company's stock price if it does not perform up to investor expectations. Therefore, knowing how to determine the downside risk of […]
In this article, I will discuss the importance of Warren Buffet's circle of competence for investors. I will also explain how you can identify its boundaries, how you can expand your circle of competence, and how value investors can use this information to make smarter investment decisions. Put simply, the "circle of competence," a term […]
In this article, I will explain the Weighted Average Cost of Capital (WACC) and walk through an example on how to calculate the WACC with a real company in the stock market. Afterwards, I will discuss why the WACC is flawed as the discount rate, and what individual investors can use instead to discount their […]
In this article, I will cover how to use dividend discount models to value dividend stocks in the stock market. Although the discounted cash flow valuation (DCF) model may provide a better means of determining a company's intrinsic value, dividend discount models remain a useful tool for estimating value, particularly with companies that regularly use […]