Working Capital Model Investing – The QDI
Crash! The 2007 thru 2008 financial crisis halved 401(k), IRA, and Mutual Fund values in a matter of months. For many, retirement dates had to be pushed back; for others, new jobs had to be found. The...
View ArticleThe Investment Gods Are Angry
Today's obsession with short-term blinks of the investment eye is Wall Street's attempt to take the market cycle out of the performance picture. Similarly, total return hocus-pocus places artificial...
View ArticleCrisis Investing - Three-Pronged WCM Strategy
Unfortunately, investors are a lot like teenagers. They know everything; expect instant gratification; take unnecessary risks; fall in love easily; ignore voices of experience; prefer the easy...
View ArticleInvestors Review Their Best Investment Book
My wife was trying to sleep and she's waking up and saying "What's wrong with you?" What could I tell her, that I was cracking up over a financial book? ---I've got to tell you, there were times when I...
View ArticleStock Market Corrections Are Beautiful--- And Necessary
The reality of corrections is one of the few certainties of the financial markets, a reality that separates the men from the boys, if you will. If you fixate on your portfolio Market Value during a...
View ArticleInvestment Performance Evaluation Re-Evaluated: Part Two
The Working Capital Model looks at investment performance differently, less emotionally, and without much concern for short-term market value movements. Security market values are used for buy/sell...
View ArticleHow's Your Investment Portfolio Doing? Seven Long-Term Indicators
Before Wall Street conned investors into thinking of calendar quarters as "short-term" and single years as "long-term", market cycles were used to test investment strategies. Performance analysis was a...
View ArticleInvestment Grade Value Stock Index (IGVSI) Soars 24%
The IGVSI tracks a portfolio of approximately 400 stocks--- and less than half of them are likely to be found in the S & P 500 average.Tags: bondstradingWall Streetstock...
View ArticleInvestment Portfolio Protection Strategy
So, a better question, concern, or observation during a rally (Yes, Virginia, seven consecutive months to the upside is a rally.), given the extraordinary performance scenario that these investors...
View ArticleWorking capital in Free Cash Flow FCF Calculation
Discussion of why changes in working capital is not required when calculating free cash flow and owner earnings.Tags: free cash flowFCFworking capitalchanges in working capitalowner earnings
View ArticleManaged Asset Allocation - Working Capital Model Part One
The key to successful Investment Management is Asset Allocation, the process of dividing the available investment dollars into two, and only two, buckets: Equity and Income Investments. All investment...
View ArticleRisk, The Essence Of Investing
Risk is compounded by ignorance, multiplied by gimmickry, and exacerbated by emotion. It is halved with education, ameliorated with cost-based asset allocation, and managed with disciplined: selection...
View ArticleCruise Control Hedging: The Basics of Investing
Risk minimization requires the identification of what's inside a portfolio. Risk control requires decision-making by the owner of the investment assets. Risk management requires a selection process...
View ArticleTen Risk Minimization Strategies
Errors occur most frequently when judgment is rocked out of the boat by emotion, hindsight, and misconceptions about how securities react to waves of varying economic, political, and hysterical...
View ArticleA Preemptive, and Timeless, Portfolio Protection Strategy
Investors constantly focus on the event instead of the opportunity that the event represents. Being retrospective instead of hindsightful helps us learn from our experiences. The length, depth, and...
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