If you read any great investing books you’ll come across an extended investment checklist. Lynch had his simple philosophy. Fisher had fifteen points. And Graham had his portfolio policy and value formula. Even Buffett and Munger talk about keys to a great company.
The idea of a checklist isn’t new. It’s used by a number of professions, like engineers, pilots, and doctors, to prevent mistakes. There’s a reason every flight seems like a ritual. Both pilots and flight attendants go through a checklist before, during, and after each flight.
As a passenger it seems trivial, but they do it for a reason. It works. It makes sense too. Lives are on the line and anything that prevents errors and mistakes, inevitably saves lives. And all because of a simple checklist.
You can apply the same concept to your portfolio and investments. Continue Reading…
One of the most overlooked areas of tax savings is understanding how realized gains and losses impact your taxes. When you sell an investment, calculating cost basis and good record keeping plays a vital role in controlling those savings now and in the future.
The recent Fed hints at ending QE means rising interest rates. It also means big changes in the markets. Here are several ETFs to protect yourself and invest in as interest rates rise.
Whether a stock pays dividends may play a big role in your investment strategy. A dividend provides a source of income. It offsets losses. When reinvested, it compounds growth. But this isn’t an argument that dividend paying stocks are better. It’s an introduction to dividends, giving you an idea of what to expect and what to watch out for when owning dividend stocks.
Investment risk comes in many forms. Most of the time the market does a good job interpreting those risks.