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The Proper Utilization and Interpretation of FAST Graphs

Introduction One of the most common questions we receive regarding FAST Graphs is: why are P/E ratios different on the historical graphs versus the forecasting calculators?  Although this is a fair question, it also illustrates that many of our users are not fully understanding how the tool is designed and/or how it works or should …

Stock Selection Options by Category: Part 2A

Introduction In part 1 of this series titled “How Many Stocks Should I Own?”  found here, I focused primarily on how many stocks an investor might need to hold in a stock portfolio for adequate diversification.  In this part 2, my focus will shift to category selections. Instead of how many stocks to own, this …

The Active versus Passive Performance Debate Is Nonsensical

Introduction One of the most hotly contested debates in finance is the argument over which is better – active or passive investing.  Moreover, this debate has spurred numerous academic studies that claim to identify whether passive outperforms active investing or vice versa.  As a result, the current popular opinion suggests that passive outperforms active investing …

Southern Company: Invest While the Yield Is Still High

Introduction In consideration of today’s low interest rate environment, fixed income securities offer little in the way of return.  Moreover, the safety characteristics normally associated with fixed income are also potentially upside down.  Since early 1982, the interest rates available with fixed income have been in a continuous freefall.  This has presented both good and …

Designing a Dividend Growth Portfolio for a Specific Retirement Yield Objective: Part 1

Introduction Managing an investment portfolio is a very personal matter.  Consequently, the most important consideration is to design a portfolio that meets your own unique goals, objectives and risk tolerances.  Everyone is different, and consequently, every investment portfolio can and should be appropriately different as well.  Stated more straightforwardly, I do not believe in cookie-cutter …

Retired Investors Don’t Buy Bonds Until?

Introduction The primary attractions supporting investing in bonds or other fixed income instruments have traditionally been high income and safety.  People invest their principal in bonds and receive a stated interest rate (coupon) over the life of the bond and are given the promise of having their principal returned at maturity.  Under normal times, bonds …

Retired With Money To Invest? Consider Playing Defense With Utilities

Introduction It is no secret that the stock market in the general sense is trading at a higher valuation than normal.  On the other hand, I would argue that it’s far from bubble territory.  Regardless, I must admit that finding attractive valuations is getting harder with each passing day.  This is especially true for the …