In this article, I will show you how to effectively hedge your stock portfolio. Put simply, hedging is the insurance of investing. Therefore, the purpose of a hedge in a portfolio is to move in the opposite direction of another asset in your portfolio, preferably at a delta of negative one (to represent negative correlation). […]
In this article, I will discuss the value of investing in the Volatility Index as a hedge. The Volatility Index is officially called the Chicago Board of Exchange (CBOE) Volatility Index, or the VIX Index (aka VIX) for short. The VIX is a real-time market index that tracks the 30-day expected ("implied") volatility of the […]
In this article, I will show you how to analyze and protect your portfolio against inflation, regardless of the current market environment. Inflation is one of the most important investing topics, and as value investors, we can position ourselves in a way that we can profit from inflation, or at the very least, not let […]
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 determine the downside risk of a stock investment. 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 a […]
In this article, I will show you how to identify an economic moat, a distinct/durable/sustainable competitive advantage a company has over others in the same industry or sector. Identifying an economic moat is an essential part of the analysis process for value investors looking to make a long-term investment. Without a strong economic moat, companies […]
In this article, I will discuss the importance of stock buybacks for investors, what positive or negative implications they may have for investors, and what items investors should look for when analyzing companies that do stock buybacks. In short, a stock buyback, or share repurchase, is when a company purchases shares of their own company, […]
In this article on how to evaluate a company's management team, I will cover the various competencies, financial reports, and ratios you should pay attention to and research when attempting to evaluate the management of any publicly traded company. Over the long-term, a bad management team will almost always result in a falling stock price […]
In this article, I'll show you how to effectively analyze company debt through analyzing the three primary financial statements (income statement, cash flow statement, and balance sheet) for a real publicly traded company. I'll also highlight the ratios we can use to further determine whether a company is capable of managing its debt. Understanding how […]