5 Most Important Factors to Increase Your Portfolio Value
As investors we all have the common goal of increasing our portfolio value. But how often do we really consider the factors that determine the value of our portfolio? Here are the five factors that affect the value of your portfolio the most!
...Purpose of Financial Statements Analysis
The purpose of financial statements is to provide pertinent information on the financial position (Balance Sheet), profitability (Income Statement) and operating, investing, and financing activities (Cash Flow Statement) of a company.
...3 Steps to Avoid Repeating Investment Mistakes
We review 3 steps to avoid repeating investment mistakes: identify mistakes, analyze reasons for investment mistakes, and find replacement actions.
...Fundamental and Technical Analysis: What is the Difference?
We’re going to examine the difference between fundamental and technical analysis. Fundamental stock analysis is the process of financial statement analysis. Technical analysis is the forecasting of the future price of a financial asset using primarily historical price and volume data.
...Explain Bonds, Bond Terms, Price and Yield, Types of Bond Risk
This post teaches the basics: what a bond is, bond terms, the relationship between price and yield, and the two main risks of owning bonds.
...What is Common Stock? Advantages and Risk
...Investment Diversification
Use investment diversification of non-correlated assets to minimize unsystematic risk. This is the only “free ride” available to portfolio managers.
...Reinvesting Dividends Benefits
...What is the Difference Between Saving, Investing, and Gambling?
Recognizing the differences between saving, investing, and gambling will help you compartmentalize each, and avoid common mistakes. It’s an easy mistake because not enough people think it through, and the terms are used interchangeably in our culture. Keeping saving, investing, and gambling three separate activities in your mind and in your account structure will help you be more successful managing your money and growing your wealth.
...3 Types of Investors – Which Type Are You?
There are 3 main types of investors today; each with their own characteristics and results: The buy high sell low investor, the index investor (passive management), and the value investor.
...10 Investing Principles Fundamental to Successful Outcomes
There are fundamental investing principles that apply to each of us whether we are seasoned portfolio managers or a novice investor. Here are 10 investing principles fundamental to successful outcomes.
...Selling a Stock: Good Reasons and Common Mistakes
We put a lot of emphasis on buy side investment decisions. However, the sell side can make the difference between success and failure. We’re going to consider 3 reasons for selling a stock and examine two common mistakes made by value investors:
...Stop Loss Orders: An Investment Tool Value Investors Should Avoid?
Stop loss orders are a widely used investment tool that value investors should mostly avoid. Many investment pundits frequently recommend using stop loss orders as a risk management tool. But for value investors this can be the wrong tool.
...Investment Probability: Is it Dangerous to Make Market Predictions?
The words investment probability theory might initially cause your eyes to glaze over with boredom. But I believe I can make it practical for you and we can learn important lessons from a basic understanding of investment probability.
...Dividend Growth Compounding Versus Interest Compounding
Dividend growth investing combines the benefits of compounding dividends, compounding the growth of dividends per share, and the increasing value of the shares themselves. The key principle is to take advantage of the power of exponential growth by reinvesting growing dividends over long periods of time. Interest compounding is a powerful financial concept, but dividend growth compounding multiplies the benefits of exponential growth.
...Exponential Growth, Double Time, and the Rule of 72
Exponential growth is sometimes described as the “miracle of compounding” because of the extraordinary explosion that takes place over time. Investors can use double time and the Rule of 72 to estimate the power of exponential growth to meet their retirement goals. Use this important financial concept to meet your investment goals!
...Slow and Steady Wins the Race in Investment Management
There are people who get rich quickly. Some win the lottery. Some pick the right stock at the right time and are able profit from luck. But these examples are a minute fraction of those who plan their success through sound principles. Slow and steady wins the race in investment management.
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About
As founder of the Arbor Investment Planner my passion is to educate and empower the individual investors to manage their own investment portfolio.
The Arbor Investment Planner is a value investment portfolio management guide for those individual investors who choose to manage their own money. I focus on ideas and concepts important to the self directed investor; but put special emphasis on risk management, value investing strategies, and proper asset allocation and diversification.
- Ken Faulkenberry
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