investment advice
Top stock brokers and portfolio managers provide you with ethical and conflict-free advice—and here are three things they won’t do.
When it comes to celebrity investors, they should be observed not followed.
More and more investors seem to look on the involvement of celebrity investors like Warren Buffett or Bill Gates as something of a pedigree for a stock....
“You get what you pay for” is a worthwhile tidbit of investment advice. But to profit from it, you have to understand how to apply it.
The adage should come to mind whenever you come across a stock that seems extraordinarily low-priced. For example, suppose you find a stock with a P/E (per-share price-to-earnings) ratio of, say, 6.0, at a time when seemingly comparable stocks are selling at P/Es of 12.0 or 15.0.
The you-get-what-you-pay-for rule tells you there’s always a reason for an unusually low P/E—just as there is for an unusually high dividend yield.
With doubts about earnings, this lower price shows up in a below-average P/E ratio. (The P/E is lower than average because “P” is the numerator or upper figure in the ratio.)
With doubts about dividends, this lower price shows up in an above-average dividend yield. The formula for dividend yield is D (dividend)/P (stock price). The yield goes up because the P or price is depressed and it is the denominator or lower figure in the ratio.
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The adage should come to mind whenever you come across a stock that seems extraordinarily low-priced. For example, suppose you find a stock with a P/E (per-share price-to-earnings) ratio of, say, 6.0, at a time when seemingly comparable stocks are selling at P/Es of 12.0 or 15.0.
The you-get-what-you-pay-for rule tells you there’s always a reason for an unusually low P/E—just as there is for an unusually high dividend yield.
With doubts about earnings, this lower price shows up in a below-average P/E ratio. (The P/E is lower than average because “P” is the numerator or upper figure in the ratio.)
With doubts about dividends, this lower price shows up in an above-average dividend yield. The formula for dividend yield is D (dividend)/P (stock price). The yield goes up because the P or price is depressed and it is the denominator or lower figure in the ratio.
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Investors who use a dividend capture strategy hope to sell a stock for as much as they paid for it and “capture” the dividend at no cost.
When you’re investing and planning for retirement, make sure you make realistic calculations rather than indulging in wishful thinking
Our view of one of the world’s largest mining stocks, Freeport-McMoRan, as activist investor Carl Icahn buys in and presses for change.
The more brokers and the media praise popular stocks, the higher investor expectations are raised—and the farther they have to fall.
Our take on Newmarket Gold: with ambitious growth plans and big names on its board, this penny stock offers some speculative appeal
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