I asked 12 of the best personal finance bloggers and money experts best way to invest money to get an idea of where to start investing. "What is the best way to invest money for a brand new investor? Where should a brand new investor put $1,000 to work in the market?" And, I was not disappointed by their answers. Here are what they said... The Best Way to Invest Money for a New Stock Investor J Money from Budgets Are Sexy - It's always hard to advise someone the best way to invest money without knowing them at all or their … [Read more...] about Where Should A New Investor Put $1,000 To Work In The Market?
I love buying shares of dividend stocks that pay a dividend. Dividends are a great way for companies to give back their earnings to the company’s shareholders. In classic finance theory, a company’s stock share price is derived from the present value of its future income…its dividends. Paid To Wait For Dividend Stock To Increase There have been instances of good companies that have been caught in a value trap, and their stock prices have tread water for years. Microsoft is a great example that immediately comes to mind. Microsoft … [Read more...] about Three Reasons You Should Love Dividend Stocks
There is a difference between a good company and a company’s stock that makes a good investment. How do you choose and know when a good company may be a poor investment choice? How do you keep from falling in love with a company? These are some of the tricky questions that individual stock investors wrestle with. Here are a few things to consider when trying to identify when a good company may be a bad investment. The Right Stock Valuation Classic finance theory states that the valuation of a stock price over the long-term is based on … [Read more...] about Why Good Companies Do Not Always Make Good Investments
There are many different ways that investors use to try and determine a stock’s share price and what it is really worth. Typically, investors fall into one of two categories. They are either financial analysis investors or technical analysis investors. Investors who use financial analysis use many means to price a stock’s shares. Two of the most popular methods are the price to earnings ratio simply called the PE ratio and growth rate. What Is A PE Ratio? And, How Do You Calculate It? A PE ratio is the value of the price of a share of … [Read more...] about How To Using PE Ratio And Growth Rate To Find Cheap Stocks
There have been some turbulence in the stock market recently. There are been more days than not that have seen a hundred point swing one way or another. But, you shouldn't fear a falling stock market. So may even think that the US stock market is in a financial crisis. So, what is an investor to do during a turbulent, falling stock market? 3 Things To Do In A Falling Stock Market Tune Out All Of The Noise One thing that I do that many people do not understand is that I don’t watch the news. There is so much negative press out … [Read more...] about Three Things You Should Do In A Turbulent Stock Market
A stock split is a tactical decision and action made by any publicly traded company’s board of directors that increases the number of existing shares by splitting or dividing the shares into more shares. What Is A Stock Split? At first glance, it is a positive thing to investors and stock shareholders since their number of shares owned will increase. But, in reality, a stock split is not a value adding event. It doesn’t detract the value either. A stock split is just an accounting sleight of hand that increases the number of shares while … [Read more...] about What Is A Stock Split? And Should You Trade Before One?