EDUCATIONAL ARTICLE INDEX

EDUCATIONAL ARTICLE INDEX 

BUILDING A VALUE STOCK PORTFOLIO

Building a Portfolio from the Ground Up – Part OneBasic portfolio building rules. 

Building a Portfolio from the Ground Up – Part TwoAllocate wisely.

Make Money – Adopt a Dog“And the last shall be first.”

“You’re Nuts to Average Down.” Not true, but keep your position sizes under 5%.

In Love with TINAWhy love stocks? Because There Is No Alternative. 

Why We DiversifyTo avoid disaster. 

The Trouble with Tech & the Dethroning of DarlingsAPPL is transitioning from Darling to value stock. 

Whether stocks are cheap is besides the point. Owning equities provides a chance to preserve value as paper money is marked down. 

P/E 10 as a Valuation Gauge = Incomplete InformationPrice/Earnings ratios are not set in a vacuum.

Individual Investors Remain Perfect Contrary IndicatorsBuy only when you find good value for your money.

Unloved Stocks Rocked in 2012The requirement that shares exhibit technical strength prevents analysts from naming the best bargains as their top picks.

Never Met a Rich Pessimist: Interview with Dr. Paul PriceTrying to predict the unpredictable is a fool’s game.

Recognize Market InsanityThis time it’s different shouldn’t be your game-plan. 

 

BUYING STOCKS

Frustrations and Rewards of Value InvestingBuy the unpopular. Sell the beloved.

Equities not yet pricey enough to entice retail investorsWe’re still bullish, but looking for values. 

“You’re Nuts to Average Down.” A myth.

Make Money – Adopt a DogThe least loved equities often outperform. 

Year–End: Investors were Penalized for Holding CashWaiting for better prices proved costly.

It’s a confidence game. There are indicators, and there are contrary indicators. (Video)

Recognize Market InsanityPricing isn’t efficient; it’s better seen through the prism of “Extraordinary Popular Delusions and the Madness of Crowds.” 

When a Great Company is NOT a Good StockBuy bargains. 

 

SELLING STOCKS

Sell Discipline – Have a plan. And don’t ditch it at the last minute. 

Call Me Maybe – Covered calls impose “sell-discipline.” 

 

OVERTRADING

March Madness and Your Trading DecisionsDownside to flipping in and out of stocks.

Most investors underperform their already underperforming funds. “Bull markets actually exacerbate this tendency to do silly shit.” (Courtesy of Joshua Brown, the Reformed Broker).

Trade Less, Make More

 

SELLING PUTS

Shares plus Covered Calls Vs. Selling Naked Puts? Selling a covered call (buying a stock and selling a call against it) versus selling a naked put.

Selling Puts on Value Companies – A New Virtual Portfolio Selling a put is a bullish position. It is similar to a below-market limit order to buy a stock. 

Selling Puts on Value Companies (Part Two)

 

COVERED CALLS 

Call Me MaybeSelling a call against a long position brings in income and imposes sell-discipline.

Covered Calls – The Hidden Risk for 2013 and Beyond. It was not a good time to sell calls. 

Shares plus Covered Calls Vs. Selling Naked Puts. Selling a covered call versus selling a naked put.

 

HEDGING & TIMING 

The High Cost of HedgingWhy pay those high insurance premiums?

Year–End: Investors were Penalized for Holding CashWaiting for better prices proved costly.

March Madness and Your Trading DecisionsFlipping your positions has more downside than you think. 

Never Met a Rich Pessimist: Interview with Dr. Paul Price. Consider historical valuations.

 

INFLATION

Washington’s Biggest LieYes, Virginia, there is price inflation. 

 

GOLD

What have you done for me lately? Precious (metals) little. It’s hard to quibble with having portion of overall net worth in something tangible.

All That Glitters… Avoiding being hit by falling gold bricks. 

Hidden Dangers in Gold – Part OneWhen the guy loading wholesale beer knows the price of a gram of gold instantly, worry.

Hidden Dangers in Gold – Part TwoGold is not a great hedge against inflation.

Gold’s ‘Highly Inflated’ Track Record. Gold’s track record is highly inflated.  

Mettle Trumped MetalFundamental investing won.

 

BEWARE OF MARKET GURUS AND DON’T CHASE HEADLINES

Schizophrenic ‘Rear-View Mirror’ Covers from Barrons. Invest based on fundamentals rather than whimsical backward-looking data.

You don’t need a weathermanTune out the noise. 

Always Question Assumptions. The rationale for a price goal may be built on quicksand.

Wall Street Cheats – Don’t be fooledWe can all be market geniuses with the benefit of hindsight. 

You only see what they want you to seeSelective advertising.

Market Comments: Lots of Words, Little Meaning. The market always goes either up or down.

Individual Investors Remain Perfect Contrary IndicatorsTrain yourself to ignore the news. 

Scare Tactics – Prepare Yourself to be Bombarded. Bad news sells.