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 more than any other components.
...Portfolio management is as much about controlling losses as it is making money. To improve your long term returns start using the financial concept of maximum drawdown to control your risk.
...Common stocks are fractional shares or a percentage equity ownership of an entity. Shares represent a proportional stake in the company’s net worth, income, cash flow, dividend, etc. Shareholder privileges usually include voting rights on issues that require shareholder approval and electing the directors of the entity.
...Understand the basics: what a bond is, bond terms, the relationship between price and yield, and the two main risks of owning bonds.
Don’t let the past 30 years be your guide regarding bond risks and returns.
...Strategic asset allocation describes a model in which the portfolio mix of assets is fixed according to the individual investor’s profile. The percentage of assets allocated to cash, bonds, stocks, real estate, etc. is set according to the investor’s goals and strategies, current financial status, and risk tolerance. But is this the best strategy for you?
...The purpose of financial statements is investment analysis using the financial position (Balance Sheet), profitability (Income Statement) and operating, investing, and financing activities (Cash Flow Statement) of a company.
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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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