In the aftermath of the financial crisis, firms began depleting cash reserves to survive.
Concentrated portfolios are seen as unacceptably risky. Diversification reduces your risk, but holding too many equities can be a bad idea.
How to calculate company profit
Modern portfolio theory suggests you should value stocks based on the sum of discounted dividend cash flows — called the dividend discount model (DDM).
Why knowing when to sell is just as important as knowing when, and what, to buy.
How understanding makes you a better investor
Are you able to explain your investment thesis in three sentences? You should be.
Stock prices may go up and down, but over the long term, it can be the real value of a business that counts.
You should avoid choosing investments based on dividend payouts. Here’s why: