Benjamin Graham, known as the father of value investment, is famous for his simple, yet powerful, valuation method as first explained in his 1973 book, Intelligent Investor, and later updated in his book entitled Renaissance of Value. His “Graham Number” approach has been adapted and applied to all 30 stocks listed on the Dow Jones Industrial Index to determine which of the stocks have above average safety factors – of which only 10 do. Below is an explaination of the approach, the formula and the results for all 30 stocks. Words: 1220
August 29th, 2011 | Posted in Asset Allocation,Investing | Read More »
Jeremy Siegel offered in his book, Stocks for the Long-Run, several actionable techniques that investors might find beneficial, one of which was a 3 parameter approach to stock valuation called the O-Metrix Grading System. The metrix has been applied to all 30 stocks listed on the Dow Jones Industrial Index and 5 stocks top the list. Below is an explaination of the approach, the formula and the results for all 30 stocks. Words: 985
August 29th, 2011 | Posted in Investing | Read More »
The herd continues to stampede into U.S. Treasury debt of every possible maturity to, theoretically, avoid risk. Yields on AA+ 10-yr bonds can be locked in to yield 2.11% per year and you get your principal back in 10 years. [As we see it, though] the only justification for [such a meagre] return on invested capital must be tied to the belief that a return is better than nothing given the prospects of a future depression. We believe, however, that fighting the Fed and investing like a depression is coming is not the right way to position your portfolio. [Below are 20 suggestions on how to generate in excess of 2.11% returns plus strong appreciation potential with modest risk.] Words: 657
August 1st, 2011 | Posted in Asset Allocation,Investing | Read More »
While gold is slightly more volatile than the Dow 30, on average, all of the individual components are more volatile than gold and only half are less volatile than silver and platinum. [So much for] the prevailing myth…that they are risky investments due to their volatility. [Let's take a closer look at the specifics.] Words: 250
May 7th, 2011 | Posted in Asset Allocation,Investing | Read More »
This book encourages everyone to cherry-pick the ideas of others on their way to success – after all, it worked for Johannes Gutenberg, George Lucas, and the Google guys. Words: 670
January 7th, 2010 | Posted in Economy | Read More »
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