Blog

Investing Words of Wisdom (Part 1)

Wise words from great investors...

"Dividend stocks have several advantages, since 1926 dividends have accounted for about 42 per cent of investor returns, while being less volatile than the market. To some extent the dividend acts like an anchor, slowing the stock down. The beauty of dividends is that you get paid, whether or not the market is up."

Howard Silverblatt, senior index analyst with Standard & Poor’s

"Don't get the wrong idea about dividend mutual funds and ETFs. They're still a…

Read more…

How Much is Your Mutual Fund Costing You?

 Michael over at Michael James on Money recently posted a great article on the cost of your investments. Rather than looking at the top ten attributes of a great financial adviser, or top ten ways to invest, you should be able to answer this question first and foremost:

How much are my mutual funds costing me each year?

You can read the complete article here, however I’d like to share with the first two paragraphs from Michael’s blog post: “Despite my enthusiasm for do-it-yourself investing, I…

Read more…

What Can You Learn from Someone Who Has Returned 586,817%?

Since 1964 Warren Buffett has been able to increase the book value of shares in his company by 586,817%. Therefore I believe he is the best person to answer the following question:

Question: If value investing is so easy, why isn't everyone doing it?

Answer:

"I can only tell you that the secret has been out for 50 years, ever since Ben Graham and Dave Dodd wrote Security Analysis, yet I have seen no trend toward value investing in the 35 years I've practiced it. There seems to be some perve…

Read more…

What is the P/E Ratio, Could it Save You Thousands?

The P/E ratio is one important factor that could save you from making bad investing decisions. Here is your quick guide to Price & Earnings and the P/E ratio. I’m going to keep this simple, let’s begin with the only two definitions you will need for today:  

 

Price: this is the stock price  

 

Earnings: this is earnings per share; earnings are the amount of profit that a company produces

 

Let’s take a look at a fictional company XYZ:

 

Company XYZ’s stock price is $50, therefore Price …

Read more…

Here is Another Way to Lower Your Investing Risk

When you are investing your hard earned money, you want to make sure that you are not putting that money at excessive risk. One way to avoid too much risk is to invest is large well established companies, these are companies that:

  • are leaders in their industry
  • are virtual monopolies with very little competition
  • will continue to provide products and services for the next 25 to 50 years

Why risk your money by investing in small companies that may not be around in the future? Focus on some …

Read more…

When is the perfect time for you to start investing?

Is it better to start now, or wait a few years before you start investing? It is definitely better and more profitable to start investing sooner than later. The longer you invest the more you will earn, and reduce your risk over time. It takes time to grow your investments; this isn’t a get-rich-quick scheme. The longer your time horizon the better it will be for you to ride out any downturns in the economy. Downturns do happen and sometimes can last for months or years; therefore it's in your a…

Read more…

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:

19…

Read more…

Would You Like to Give Yourself a Raise?

Would you like to give yourself a raise? You can by simply investing in companies that regularly increase their dividends. Dividend increases mean more money in your pocket. An increasing supply of dividends increases your income. You can use that increased amount of money for anything you wish, or re-invest it and earn more for years to come.

Here are some Canadian companies and their average dividend growth over the last 10 years:

18.2% - Canadian National Railway Company (CNR)
13.7% - BCE I…

Read more…

How to Buy Stocks and Sell Shares on the Stock Market

I'd like to share a blog post article written by Frugal Trader, which covers the basics of buying and selling shares on the stock market. I was going to write a similar post based on recent emails I've recevied, but Frugal Trader did such an excellent job, it would be quicker to check out his post. 4 steps to buying and selling stocks:

1. Sign up with a discount brokerage

2. Fund the Account

3. Getting Quotes

4. Start

Trading Bonus: Frugal Trader also covers the most common trading terminol…

Read more…

Tesla’s Stock Rises 457%, Should You Buy Some Now?

On June 29, 2010 Tesla went public and issued shares with a starting price of $17 each. Today the share price is $94.84 which represents an increase of over 457%! Should you buy shares in Tesla? Before I answer that question, I'll have to answer two other questions first:

  • What is Tesla?
  • Why has the stock price gone up so much recently?

Then I will move on the final question:

Should you buy shares in Tesla right now?

What is Tesla?

Tesla Motors, designs, develops, manufactures, and sell…

Read more…