You Gonna Spend That?

If you facts and reasoning were solid before your initial purchase your should feel excited to buy more shares at a even cheaper price. The only problem is I feel the other stocks I own are cheaper. You will buy something and then when it goes down you will feel bad because everyone else disagrees with your buy. We would expect that the S&P 500 will follow the utilities lead and break to a new intermediate high by the end of the year. 55 million end results! 650 million in reserves for bad loans in Q3. They simply produce consistent average returns minus low costs, and they never run into bad streaks, whereas active funds subject to the same performance average must first outperform well enough to overcome their higher costs. The major premise is that short-term volatility of financial assets, commonly measured as standard deviation, is a lousy measure of the actual long-horizon perils faced by real-world investors, who are subject to the vicissitudes of financial and military history.

Each individual investor holds an indirect or direct claim on the assets purchased, subject to charges levied by the intermediary, which may be large and varied. This also affects trading systems, since if assets have generally been going up then trend following for example will work better. You will learn how to evaluate a company to know if it is worth investing. That is living and investing by an internal scorecard. Warren’s father was 100% Inner Scorecard person and “taught him how life should be lived”. If you have read Warren Buffett’s biography, The Snowball, you will already know that Buffett lives by an internal scorecard. It is very difficult to be a good investor if you live by an outer scorecard. So a company which can generate a return of 15% on equity over an extended period of time is a pretty good investment. I want to invest in a high quality company but if I pay too much then the return I can expect on my investment over the long term will be correspondingly lower.

If he wants to take the reins of his future in his own hands, he must start a business that will no longer tag him as an employee working under a boss. It will take time, but it will come. Perhaps I will mention more over the next few weeks. This may present an interesting distressed debt scenario over the next few weeks if you are into those types of plays. Multiply that by 10 to 12 deals a year, and you’re losing about 20 weeks a year. Also note that by having a DRIP program in place, you are automatically purchasing some small amount every year. Having said the above, value investing did not totally disappear from my investment strategies. Other than that, I have been learning quite a bit about distressed debt investing from friend, which while interesting is often quite difficult for an individual investor. Well I have a few other companies that I feel are quite cheap that I have been reading up on lately.

You have to specify a bid price that you feel comfortable with and wait. I did get quite luck with by BAC warrants as I seem to have purchased within a quarter of the bottom. On the revenue side they get paid for delivering their oil, high quality oil, that generally receives a premium price. You just say, “hey, get on” and off you go. Fellow teachers recommended many resources to me, and I found many online. I believe all of the recommended companies for 2011 are up year to date, and with the economy coming (strongly) back to life, expect earnings to growth this year. JPM will likely release some excess reserves tomorrow giving them strong earnings and earnings growth (they have a 2x buffer compared to loan losses). It will help you build a future cash flow and wealth. Today’s trade deficit report showed strong exports which really help the GDP number.

The contents are nothing revolutionary, although he does highlight a number of places to look for bargains. It also appears that OPTI Canada, an oilsands company, is going broke as they are drowning in debt. The gloomy side of banking is centered around the commodity/junk debt problem that I wrote about in my 2015 article “The Debt Cycle And Rhymes of Lehman Brothers”. A wrote a post on my dividend income for the month of January. We all should read and practice your suggestions. How many annual reports do you read per year? I have been reading the Home Capital annual reports for at least 5 years and finally the stock is trading at P/B and P/E levels that represent decent value. I should note that you could always do some valuable reading of annual reports. If you are earning an average compound annual rate of return of 7.2%, your money will double in ten years. That is important because they believe the worst is behind them, loan losses have peaked, and reserve releases will now add back to earnings.