My investment advice can be summarized one word: valuation. Through painful and expensive lessons in more than a decade of investing, I learned that when you buy “popular” stocks that everyone knows about, you get burned badly because they inevitably become overvalued. It’s the function of the law of supply and demand. When everyone’s buying
I think the best advice I can give anyone about stocks is "buy what you understand."
This mnemonic is easily confused with its deceptive cousin "Buy what you know." People--and I used to be one of them--are fond of buying stocks of companies that they "know," usually from using the company's products but sometimes from something
A buddy suggested I write about stocks to increase readership to this blog. Why he thinks this is a winning strategy is beyond me. I wrote about the same kind of stuff in a weekly column called "Strictly Business" 87 times in four years in college but I got more attention the one time I wrote
The Senate Republicans torpedoed whatever hope there was for the Big Three (why are they still called that even though they continue to shrink?) to receive a bailout from Congress. Now the survival of GM and Chrysler apparently rests on the whims of the White House.
I like to cut to the chase and believe, in general, that getting to the heart of the matter, in the most simplistic form, identifies the problem, which is the first step towards finding a solution.
I find what triggered the current financial crises, the subprime mortgage, to be a relatively simple issue. Of course various