Submitted by Steve Selengut
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Value Stock Investing Articles
401(k) Investments and the IGVSI
401(k) participants buy the higher priced, last-year-best-performing,
and hot sector offerings while they sell or avoid the various products
they feel have "under performed" the market. Nowhere
else in their lives do they adopt such a perverse strategy. And nowhere
else in their thinking would they blindly accept the premise that any
one number represents what is, or should be, going on in their personal
Performance and The Working Capital Model
Capital Model (WCM) approach to portfolio performance evaluation
eliminates the tears and fears because it is based on more than the
current market value illusion of wealth--- a number that won't sit still
long enough to ever be meaningful. Market value, within the WCM, is used
only to determine what to buy and/or when to take profits
Your Investment IQ
as fascinating as it is frantic, as scary as it is exciting, and as
intimidating as it is satisfying. But perhaps the most interesting thing
about it is how educationally unprepared most individual investors are
for the adventure!
Performance Analysis Using the Working Capital Asset Allocation Model
matters not what lines, numbers, indices, or gurus you worship, you just
can't know where the stock market is going or when it will change
direction. Too much investor time and analytical effort is wasted trying
to predict course corrections... even more is squandered comparing
portfolio Market Values with a handful of unrelated indices and
Case for Value Stock Investing...What If?
if its true, and these pinstriped super humans can actually predict the
future, why do you transact the way you do in response?
Why would financial professionals of every shape and size holler
“sell” when prices move lower, and vice versa? Would this pitch work
at the mall? So, if we were to slowly construct a
diversified portfolio of value stocks (My short definition: profitable,
dividend paying, NYSE companies.) as they fall in price, we
would be able to take profits during the following upward cycle...
Street Wisdom... Value Stocks vs. Growth Stocks
I don't disagree with the need for distinctions such as this, but I
have a problem with the lack of consistency in who does the labeling,
how unbiased it can possibly be, and then this one big problem: almost
any stock out there can be seen as one or the other, even at the same
time, by almost anyone who owns a calculator and who thinks they have
the ability to predict the future.
Value Stock Investing, Quality is Job One
much financial bloodshed is necessary before we realize that there is no
safe and easy shortcut to investment success? When do we learn that most
of our mistakes involve greed, fear, or unrealistic expectations about
what we own? Eventually, successful investors begin to allocate assets
in a goal directed manner by adopting a realistic Investment Strategy...
an ongoing security selection and monitoring process that is guided by
realistic expectations, selection rules, and management guidelines.