Investors love a bargain. Who doesn’t want to buy a stock at a low price and watch it soar? However, just because a stock looks cheap doesn’t mean it’s a good investment. Some stocks are cheap for a reason—they’re in decline, have poor fundamentals, or face significant business risks. These…
Category: Getting Started
Do Bonds Belong in Your Long-Term Stock Portfolio?
When building a long-term stock portfolio, many investors focus solely on equities, assuming that higher returns from stocks outweigh the need for diversification. However, bonds play an essential role in managing risk, stabilizing returns, and providing passive income. While Warren Buffett often favors stocks over bonds, even he acknowledges that…
Tax-Loss Harvesting: Save on Taxes & Grow Your Wealth
Taxes can eat into your investment returns, but smart tax strategies can help long-term investors minimize their liabilities and keep more of their hard-earned money. Two key tax strategies — tax-loss harvesting and the step-up in basis rule—can significantly impact how much you owe in taxes and how much wealth…
How to Use Margin of Safety to Find Undervalued Stocks
Investing in stocks comes with inherent risks, but one principle can help investors minimize losses while maximizing potential gains: the margin of safety. This concept, championed by Benjamin Graham and widely used by Warren Buffett, ensures that investors buy stocks at a discount to their intrinsic value, reducing the risk…
How to Identify Stock Market Trends and Ride Them for Profits
Understanding Market Trends and Momentum Investing Momentum investing is a strategy that involves watching market trends and buying stocks that are trending upwards and selling those that are losing steam. Unlike value investing, which focuses on buying undervalued stocks and holding them long-term, momentum investing seeks to capitalize on short-…
Are Blue-Chip Stocks Really Safe? Lessons from Their Fall
Even the biggest and most successful companies can fail. Investors often assume that blue-chip stocks—large, well-established companies with strong reputations—are safe long-term investments. While many blue chips provide stability and steady growth, history has shown that some of the biggest names in business have collapsed. What causes once-dominant companies to…
Are You Overpaying? How to Identify Overhyped Stocks
Overhyped stocks can tempt investors with their rapid growth and media buzz, but paying too much (Overpaying) for a company can lead to disappointing returns. While some high-growth stocks justify their premium prices, others crash when reality catches up to expectations. So how do you know if you’re overpaying for…
Avoid These 10 Common Investing Mistakes New Investors Make
Investing is one of the best ways to build long-term wealth, but many new investors make costly mistakes that set them back. The good news? These investing mistakes are avoidable—if you know what to watch out for. Warren Buffett famously said, “It’s good to learn from your mistakes. It’s better…
How to Invest in Healthcare Stocks for Enduring Growth
Why Healthcare Stocks Are a Smart Long-Term Investment The healthcare sector is one of the most reliable industries for long-term investors. With aging populations, continuous medical advancements, and the ever-present demand for healthcare services, investing in healthcare stocks can provide stability and growth over time. As the global population grows…
Why Time in the Market Is More Profitable Than Timing the Market
Time in the Market: The Myth of Market Timing Many investors believe they can “outsmart” the stock market by timing their investments—buying in at the perfect low and selling at the peak. But history has shown that even the most experienced traders struggle to do this consistently. In contrast, a…