Doubling your original investment is a common goal for investors, and understanding how long it will take to achieve this can help determine the effectiveness of your portfolio. The Rule of 72 is a simple tool that can help you quickly estimate the time required to double your money without…
Price to Earnings Ratio – P/E
The standard definition of ‘Price-Earnings Ratio – P/E Ratio’ is the valuation ratio of a company’s current share price compared to its per-share earnings. The P/E ratio is calculated as: Market Value per Share/Earnings per Share (EPS) For example, if a stock is currently trading at $50 a share and earnings over…
Understanding Dividends: A Key to Stable and Profitable Investing
What are Dividends? Dividends are a critical concept in the investment world, often representing a significant portion of an investor’s return, especially in well-established companies. Here’s a deeper dive into what dividends are, how they work, and why they matter. Understanding Dividends The literal definition of a dividend is a…
How To Select A Stock: My Investment Rules
How To Select A Stock – My Investment Rules: Selecting the right stock for your portfolio can be a daunting task, especially for beginner investors using a buy and hold strategy. However, having a clear set of investment rules can make the process more manageable and increase your chances of…
Getting Started with Buy and Hold Investing
How can I get started? What you Need to Know! The question I am asked the most is, “How can I get started?” The short answer is, “Open a trading account, deposit some money, and start trading.” However, before diving in, there are some crucial steps to take to ensure…
My Stock Secret
The Importance of Monitoring Your Investments What is My Stock Secret? In my experience, investors often do not monitor their investments as closely as they should. Many rely on the advice of stock brokers and bankers without ever following up, assuming these professionals have superior knowledge and their best interests…