Understanding Stock Allocations and Categorization

I recently introduced you to the importance of asset allocation.  In order to help you determine the right asset allocation, I figured I’d spend a few moments introducing the different types or categories of stocks and the general trademarks that represent each type. The best primer book on this topic is The Sound Mind Investing Handbook by Austin Pryor.  My comments on the book exactly mirror … [Read more...]

Stock Speculating Strategies You Should Avoid

Just because you have money in the stock market, that doesn't make you an investor as defined by Benjamin Graham. Graham made an important distinction between an investor and a speculator. In a prior post, we looked at the traits of an actual investor. Basically, an investor looks for safety of principal and an adequate return. A speculator in everybody else. Although speculating isn't … [Read more...]

What it Really Means When You Buy Stock

When considering investing in stocks, there is a lot that we must learn. First we must determine whether we have the time/knowledge to choose our own investments or if we should take a more passive route (hiring a broker, passive index investing, choosing age-related mutual funds, etc). Then we must figure out our investing temperament and risk tolerance,  decide on an length of time to stay … [Read more...]

How to Find an Online Discount Stock Broker

Several years ago I fired my financial advisor. I started subscribing to the Sound Mind Investing Newsletter (SMI) to us as an investing resource.  SMI provides some guidance, and I take care of your own investments.  I immediately started to look for the best online stock broker.  After you learn how to start investing and what you want to invest in, your next most important question is how do I … [Read more...]

Stock Ownership – Your Rights And Benefits As A Shareholder

Historically, stocks have provided a good return over the long-term. But maybe you're hesitant to invest. Maybe you're not sure what you're entitled to as an owner of stock. In this post, you'll learn about three of the main benefits of stock ownership. Dividends When a company makes more money than it spends, it has positive net income. With positive net income, they can do one of two … [Read more...]

Six Categories Of Stocks You Should Know About

If you're the type who currently invests in individual stocks, or you plan to start doing this in the future, it'll be beneficial to know about the different categories of common stock. Because depending on your financial situation, goals, and risk tolerance, one category may be more suitable than other. So with all the thousands of companies currently in business, a classification system has … [Read more...]