Common Sense Strategies For Mitigating Risk In Your Retirement Portfolios: Part 2

Introduction In part one of this two-part series titled: How Investors Can Mitigate Their Portfolio Risk In Today’s Tumultuous And Volatile World: Part 1, I primarily focused on how risk is thought about and dealt with in today’s so-called world of modern finance theory. As I stated in the first article, my objective was not[…]

How Investors Can Mitigate Their Portfolio Risk In Today’s Tumultuous And Volatile World: Part 1

Introduction This article was inspired by a comment/question posed by a reader who shall go nameless, on my recent article titled: “Utilities – Today’s Best Bond Alternative.” Here is the question: “Last question, I promise. Wondering what you use to lower portfolio volatility for clients that are more risk averse? What is your bond substitute[…]

International Business Machines: A Road Map To Reasonable Valuation

International Business Machines Corporation (IBM) likely isn’t flying under anyone’s radar. From its humble beginnings as the Computing-Tabulating-Recording Company in the early 20th century, this Armonk, New York based mega technology corporation has grown to a top 20 company in the world.  But even without that tidbit of information, you’ve surely heard about the company.[…]

What Is The Correct Discount Rate To Use? Part 2B

Introduction One of the most widely-accepted and utilized methods of valuing a business in today’s world of modern finance is discounted cash flow (DCF) analysis.  Obviously, in order to calculate valuation, practitioners must rely on mathematical formulas.  However, the challenge with utilizing mathematical formulas to determine the net present value (NPV) of a future stream[…]

Calculating A Stock’s Fair Value Based On Future Growth Expectations: Part 2A

Introduction In part one of this two-part series I focused primarily on calculating the intrinsic value of a common stock based on an analysis and review of historical information and data.  Although I strongly believe that there is much that investors can learn by studying the past, I even more strongly believe that since we[…]

How To Calculate The Intrinsic Value Of Your Common Stocks: Part 1

Introduction Every investor in common stocks is faced with the challenge of knowing when to buy, sell or hold.  Additionally, this challenge will be approached differently by the true investor than it would by a speculator.  But since I know very little about speculation (trading or market timing), this article will be focused on assisting[…]

Invest In Stocks With A Margin of Safety To Reduce Risk And Enhance Returns

Introduction Of all of the many sound investing principles that legendary teacher and investor Ben Graham put forward, he believed that his concept of “margin of safety” was the most important of all.  This investment lesson was so deeply ingrained into the mind of Ben Graham’s most famous student, Warren Buffett, that he created his[…]