The Donald’s lost 80% of their $60 mil stock portfolio after following the advice of Piper Jaffrawy, which told them to keep their money in Level3 Worldcom stocks well after the tech bubble imploded, the New York Times reports. As of April 18th, 2001, the firm still rated Level 3 a “strong buy,” even though the stock had dropped to $13.06 from $50…
Warren Buffet likes index funds. [Bankrate]
We’ve been reading this weekend’s New York Times mutual funds report sitting on our kitchen table a little bit at a time for breakfast and something we saw in, “Don’t Pay Tax Twice On Your Fund Gains” changed how we thought about the old adage of “Buy Low, Sell High.”
We were discussing expanding our mutual fund portfolio (not hard, as it only contains ONE fund right now) with our step-father and mentioned adding in some international and European funds.
Want to know the one tip that will make you a successful investor? No, this isn’t a sales pitch for some get-rich-quick stock trading program. It’s a bit of good investing advice from Business Week on the factor that most separates excellent investors from average Joes.
Another factor to consider when choosing a mutual fund are its 12b-1 fees, which are basically money the fund managers take out to pay for running and marketing the fund.
We’re trying to learn more about mutual funds, which we find quite frightening, so let’s start by breaking down some terms, like R-squared, a measure of volatility. Here’s what Vanguard says:
Businesses with better reputations reap rewards in the stock market, reports BusinessWeek. This graphic shows how some company’s stock would appreciate if the companies had more street cred. A spin campaign won’t do the trick, though, reputation is based on concrete action…
WSJ round up seven mind games people play that can have them short-changing their personal finances.
The longer you hold stocks, the better your inflation adjusted returns are, AllFinancialMatters demonstrates. For instance, compare the S&P 500 Annual Real Returns from 1926-2006 with a 1-year holding period vs a 20-year in the picture above.
For the new investor considering mutual funds, one important comparison basis is their expense ratio.
Dollar cost averaging (DCA) is a method of investing whereby you spend a fixed amount on a stock per month, regardless of price.
Based on your suggestions, we redid The Consumerist ACSI fund mock portfolio. We changed it from 100 shares to $1000 worth of each company, rounded down to whole shares. This way the highest stocks won’t have an undue influence on the portfolio’s performance.
We made a mock portfolio buying 100 shares of companies scoring high on the American Customer Satisfaction Index (ACSI).
Using a back-tested paper portfolio and an actual case, the authors of a study published in the Journal of Marketing found that companies at the top 20% of the the American Customer Satisfaction Index (ACSI) greatly outperformed the the stock market, generating a 40% return.
Ask The Advisor has 13 tips to maximize your experience with Google Finance, a free online stock and company information tool. Number 11 tells you how to get multiple quotes at the same time: