Worried about making investing mistakes? Watch out for this...
Everybody worries about making bad investing mistakes. You don't want to lose your hard earned money, so it's important to make sure you are making the right investing decisions. One metric I always look at is the Payout Ratio, it only takes 10 seconds to check and can save you thousands of dollars in making poor investing decisions.
What's a Dividend?
But first, what is a dividend? A dividend is a cash payment paid to shareholders. The company decides when and how much to pay shareholders. As …
What’s Wrong with Index Funds?
There are three issues that I have with index funds, and that’s why I don’t invest in them.
But first let’s make sure you know what an index fund is.
What is an index fund?
An index fund is a mutual fund that pools money from lots of investors like yourself, and then invests that money on your behalf into stocks. A typical mutual fund has a fund manager who decides which stocks to buy and sell. However an index fund has no live fund manager, the fund manager is a computer that buys stocks fro…
The 12 Rules of Simply Investing
Here are the 12 Rules of Simply Investing, the same rules I have used over the last 18+ years to invest successfully.
These rules are designed to minimize your risk and maximize your gains for the long-term. These rules make investing easy and simple to implement.
Without further delay, here are the rules:
1. Do you understand the product or service offered by the company?
2. Will people still be using this product or service in 20 years?
3. Does the company have a low-cost durable (lasting…
Can You Earn 6 times More than a Term Deposit?
A Term Deposit also referred to as a GIC (Guaranteed Investment Certificate) currently pays about 1% annually in interest. 1% return on your investment doesn’t even cover the cost of inflation. Let’s take a look at an example in which you could earn six times as much.
Here is a list of sample annual interest rates available today:
Term Deposit (1 year): 1.095%
Term Deposit (2 year): 1.194%
Term Deposit (3 year): 1.293%
Term Deposit (4 year): 1.490%
Term Deposit (5 year): 1.786%
What’s the Easiest Way to Grow Your Money?
Would you like to increase the amount of money you currently make? Have you thought about how to increase your income? Getting a raise? Starting a second job? Changing your career? Launching a new business? Investing in real estate? All of these are great ideas but the time and effort involved is huge!
What then is the quickest and easiest way to grow your income? I would suggest investing in quality stocks that pay dividends. Dividends are cash payments made to shareholders, dividends are paid…
Would you like to earn $385,024 a year?
Imagine earning $385,024 each year for the rest of your life, and getting annual increases too! I’ve written many times about the power of dividends especially increasing dividends.
Now let’s take a look at a real-life example with Wal-Mart. Wal-Mart became a public company on October 1, 1970 and started issuing shares at $16.50 each. Since then the company has had eleven 2 for 1 stock splits. Basically this means that if you purchased 100 shares in 1970, today you would own 204,800 shares:
Everything You Always Wanted To Know About Simply Investing But Were Afraid To Ask (Top 13 Questions!)
1. What exactly is the Simply Investing course?
The Simply Investing course is an online video course created by me, to teach you how to invest successfully. I teach the principles of value investing with a focus on dividends. The same techniques used by successful investors like Warren Buffett, Benjamin Graham, David Dodd, and John Templeton. In the course I teach you in plain English:
- the basics (what is a stock, stock market, and dividends)
- how to find great stocks, and avoid the bad one…
Are You An Investor Or Speculator?
Are you an investor or speculator? Or are you a speculator thinking that you are investing?
Over the years I’ve heard people say things like, “I’m going to play the stock market. I’ll gamble a few hundred dollars on this stock. If I get lucky I can retire soon.” When talking about stocks, I never mention the words “play” “gamble” or “lucky”.
Those words belong in a casino not when you are investing your hard-earned money. There is a big difference in investing versus speculating, Benjamin Grah…
$40 Coca-Cola Share Turns Into $9.8 Million Using the Power of Dividends
Last month Coca-Cola’s board announced a two for one stock split, the first in 16 years. A stock split basically doubles the number of shares you own. If you own 100 shares in a company, and the stock splits two for one, you end up with 200 shares. Companies generally split stocks when they think their share price has gotten too expensive or if the stock is trading too high compared to similar companies’ stock. A stock split is a good thing for shareholders if the stock price continues to rise a…
Mutual Funds vs Simply Investing
In this example let’s take a look at $10,000 invested in mutual funds and $10,000 invested on your own, what I like to call the Simply Investing way.
Both methods are simple, in option #1 you simply handover $10,000 to your mutual fund advisor. In option #2 you simply deposit $10,000 into your trading account and purchase quality stocks when they are undervalued.
After 10 years which investment will be better? Take a look at the table above, and you can clearly see that the Simply Investing …