Stock | Choose Stocks Wisely

Choose Stocks Wisely Seminars

Greetings friends. Remember tonight as your heading for bed to set your clocks forward as Daylight Savings time for 2019 has arrived. I don’t know about you but I love having that extra hour of light before darkness sets in to close out the day.

Mississippi State University, Meridian Campus will host two “Choose Stocks Wisely” seminars, the first later this month and the second will be in April. The first seminar will introduce the balance sheet approach to valuation of an equity security while the second will focus on how to conduct research on specific companies. Go here to read about the upcoming events. […]

March 9th, 2019|seminars, Stock, value investing|2 Comments

Stock Investing Tips

I hope you are well today. Summer is drawing to a close and doesn’t time go by quickly!

Today, I’ll offer a few key summary tips for investing in common stocks:

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September 17th, 2017|Balance Sheet, catalyst, earnings, Stock|0 Comments

Buying Stocks Near Tangible Net Asset Value

My book, “Choose Stocks Wisely: A Formula That Produced Amazing Returns,” communicates in step-by-step fashion the usefulness of the balance sheet to finding a buying price on a common stock. As stated before, a share of stock is a share of company equity. Equity is found only on the balance sheet.

Also found only on the balance sheet are a company’s assets (resources) and its liabilities (obligations). The excess of the assets over the liabilities is equal to the equity of the company. Since equity is equal to the residual after subtracting liabilities from assets, equity is also referred to as “net assets.”

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November 3rd, 2013|Balance Sheet, Buying, Equity, net tangible assets, Stock|4 Comments

Investing in Times Like These

I was speaking at a civic club the other day about my book, “Choose Stocks Wisely: A Formula That Produced Amazing Returns.” During the Q and A time, I received a question that I’ve received before. The question probed at what my thoughts are toward investing in stocks amidst a backdrop of great financial uncertainty in our nation today.

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October 26th, 2013|faith, Investing, Stock|1 Comment

Is Investing in Stocks Gambling?

Observing the investing behavior of my parents while I was growing up, I came to think that investing in anything other than a certificate of deposit (CD) was too risky. In fact, during my youthful years, I embraced the notion that people who invested in the stock market were gambling.

Later on, it occurred to me that all publicly-traded corporations are owned my stockholders. If the corporations had no stockholders, there would be no corporations. This would mean the absence of jobs and collapse of the economy. Well, if investing in stocks is actually gambling, it would not take long before corporations would cease to exist because there would be fewer and fewer people who would be willing to gamble away their hard-earned money.

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October 19th, 2013|Gambling, Investing, stewardship, Stock|0 Comments

Faith, Money, and Investing in Stocks

I’m a follower of Jesus Christ. It seems to me that money can sometimes be an uncomfortable topic of discussion for those of us who profess to believe in Christ. Many are familiar with the Bible passage (I Timothy 6: 10) where the apostle Paul says that the love of money is the root of all evil. Obviously, talking about money does not equate loving it. In fact, Christians must be willing to have frank discussions about money since we are regarded as God’s stewards in the Bible and, as God’s stewards, it is required that we be found faithful (I Corinthians 4: 2). Financial stewardship is an important area of Christian stewardship.

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October 13th, 2013|Buying, Christian stewardship, money, Stock|2 Comments

Relaxing the P/E

On occasion, I will write a post that is especially directed to readers of my book. This is one of those posts.

My book teaches how to screen for potential stock purchase candidates from the universe of publicly traded companies and then how to analyze the stock purchase candidates further for quality and a low buying price.

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October 7th, 2013|P/E ratio, Stock, stock filters|0 Comments

Buy Low OR Sell High

Yes, I know. It’s “buy low AND sell high,” not “buy low OR sell high.” However, I want to make a case in this post and the next that knowing how to buy quality stocks at bargain (low) prices is much more important than knowing how to sell stocks at high prices.

Intuitively, if I know how to buy low but not how to sell high, I face a low level of risk of loss since I’m buying at a base level from which the stock price is unlikely to diminish significantly, even if the company does not perform as well as I would like for a spell. On the other hand, if I know how to sell high but not how to buy low, I’m assuming significant risk since I’m dependent on things going well for the company such that I have opportunity to realize the high selling price. Further, since I don’t know where “low” is, I’m vulnerable to finding that out the hard way if things don’t go so well for the company involved. My personal record of success reveals that if you know how to buy quality stocks at low prices, you will likely exceed normal market returns regardless of how seldom you manage to sell near high prices achieved by the stocks you buy.

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October 2nd, 2013|Balance Sheet, Buying, Risk, Stock|0 Comments

Think of Equity Being Like Your Checking Account Balance

Equity is a type of account found on the balance sheet and equity belongs to common stockholders when the business is in the corporate form. When something beneficial, financially speaking, happens to the company, the amount (balance) of the equity account goes up. When something negative, financially speaking, happens to the company, the equity balance goes down.

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September 18th, 2013|Balance Sheet, Equity, Stock|0 Comments

Risk is the Downside

When purchasing common stocks, the name of the game is risk avoidance. If you avoid losing money, you stand to do well in the stock market. You buy a stock to achieve a return, but achieving a return depends on buying quality stocks when they are trading at bargain prices. That is, you make a good stock investment when you buy stock in a solid company that is underpriced. When you do this, you have minimized risk by minimizing your potential loss. If you want to achieve good returns consistently, don’t focus your attention on the possible return; focus on minimizing your risk of loss when you buy.

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August 12th, 2013|Balance Sheet, Buying, Equity, Risk, Stock|0 Comments