Everyone’s heard the song “The 12 Days of Christmas.” Since we’re in the midst of that season, it seems like an appropriate time to review “The 7 Wonders of the Investment World.” The difference is that the effect of these 7 “wonders” lasts a lot longer than 12 days. Or 12 months, for that matter.

Understanding how these 7 wonders work …read more »

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you our specific advice on the fundamentals of successful investing. Each Investor Toolkit update gives you a fundamental portfolio management tip and shows you how you can put it into practice right away.

Today’s tip: …read more »

“Averaging down” is the well-known market tactic by which investors buy more shares of a stock that has come down in price.

Averaging down lowers your average cost per share, but can cost you money in the long run. At the same time, you run the risk of distorting your overall portfolio management strategy.

Portfolio management: 3 reasons to avoid “averaging …read more »

ACI Worldwide, symbol ACIW on Nasdaq, makes software used to process transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments.

We analyze ACI in Stock Pickers Digest, our newsletter that recommends investments for the aggressive part of your stock portfolio.

In March 2011, ACI bought ICD Corp. for an undisclosed amount. ICD has over 140 customers who …read more »

Investors sometimes ask us whether they should buy stocks “on margin.” That is, whether they should borrow money from their broker to buy securities.

(When you become a member of Pat McKeough’s Inner Circle, you get to ask me and my team of investment experts anything about your investments—from portfolio management strategies to questions about individual stocks. Read on to …read more »

Tim Hortons Inc., Toronto symbol THI, saw less traffic at its Canadian coffee-and-donut stores in the first quarter of 2011, due to bad winter weather. As well, the company spent more on promotions, which hurt its earnings growth.

We analyze Tim Hortons in Stock Pickers Digest, our newsletter for portfolio investing in aggressive stocks.

In the three months ended April 3, …read more »

Some investors think by focusing our portfolio management strategy on stocks, and staying out of bonds and fixed-return investments, we’re missing out on bonds’ ability to lower portfolio volatility.

It’s true that bonds do tend to reduce your portfolio’s volatility, since they tend to rise when stock prices fall. That’s why many brokers sell bonds to their clients. Of course, bonds …read more »

A key part of our three-part tsinetwork.ca portfolio management advice is to downplay stocks that are in the broker/public-relations limelight.

(The other two parts are to invest mainly in well-established, dividend-paying companies and spread your money across the five main economic sectors: Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities.)

Portfolio management: Why “in the limelight” stocks are riskier than …read more »

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on successful investing, including portfolio diversification. Each Investor Toolkit update gives you a fundamental piece of investment strategy, and shows you how you can put it into practice right away.

Tip of …read more »

These days, some of the most misleading ads you’ll see concern so-called “model portfolios.” All too many brokers use these model portfolios to build their money management business.

For instance, one recent ad claimed that its model portfolio turned $100,000 in 2000 into more than $1.7 million by 2009. It says the model outperformed the S&P/TSX 60 market index in every …read more »