What Are Stock Buybacks and Why Do They Matter? In recent years, stock buybacks have become one of the most common ways companies return value to shareholders. In fact, S&P 500 companies spent over $900 billion on stock buybacks in 2023 alone—a record-breaking amount. But are stock buybacks always a…
Category: Getting Started
Is Coca-Cola Stock the Best Dividend Stock for Long-Term Investors?
Why Coca-Cola Stock is a Masterclass in Buy-and-Hold Investing When it comes to long-term investing, few stocks are as iconic as Coca-Cola Stock (KO). With over a century of consistent performance, strong brand loyalty, and steady dividends, Coca-Cola is a textbook example of a buy-and-hold investment. Even legendary investor Warren…
The Role of Corporate Governance in Long-Term Stock Performance
Learn Why Corporate Governance Matters for Investors in this Article. Corporate governance is a crucial factor that can determine the long-term success of a company and its stock performance. It encompasses the system of rules, practices, and processes by which a company is directed and controlled. Strong corporate governance ensures that…
Profit Margins Explained: How to Spot Financially Strong Stocks
Why Do High Profit Margins Signal a Healthy Business? When evaluating a stock for long-term investment, many investors focus on revenue growth, earnings per share, or even a company’s price-to-earnings ratio. However, one of the most critical yet often overlooked indicators of financial health is profit margins. Companies with consistently…
How to Achieve Financial Independence: 5 Investing Rules
The Path to Financial Independence Financial independence is the ability to live life on your terms—free from the constraints of a paycheck. It means having enough wealth and passive income to cover your living expenses, allowing you to work because you want to, not because you have to. For most…
Income Statement: Signs of a Profitable Business
Successful long-term investing starts with understanding a company’s financial health. One of the best tools for assessing this is the income statement — a core financial document that reveals a company’s profitability, revenue trends, and expense management. For buy-and-hold investors, mastering income statement analysis helps distinguish strong businesses from weak…
Previous Highs vs. True Value: How to Avoid Costly Mistakes
Investors often fall into the trap of using a stock’s previous highs as a benchmark for its future potential. If a stock was trading at $150 per share last year but is now at $30, is this a buying opportunity? Or is the drop a warning sign that the company…
The Ultimate Guide to the Economic Calendar for Investors
Why the Economic Calendar is Important for Investors The economic calendar is an essential tool for investors, providing insights into key economic events, data releases, and policy decisions that can impact financial markets. While short-term traders closely follow economic indicators to predict market movements, long-term, buy-and-hold investors can also benefit…
Emotional Investing: How to Recognize and Overcome Emotional Biases
Why Emotional Investing is a Challenge Emotional investing is one of the biggest challenges investors face. No matter how much research you do or how well you understand a company’s fundamentals, emotions can still cloud judgment and lead to costly mistakes. Fear, greed, overconfidence, and herd mentality can cause investors…
Does GDP Growth Matter for Investors? What You Need to Know
Should GDP Growth Influence Your Investment Decisions? Many investors track economic indicators, such as the GDP growth rate, to determine whether it’s a good time to invest in stocks. After all, if the economy is growing, wouldn’t that mean stocks will perform well? And if the economy is slowing, should…