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Many individual investors embody value investing—Benjamin Graham and Warren Buffett immediately come to mind. Among investment management firms, perhaps none is as devoted a follower of the principles of value investing as Tweedy, Browne Company. In his book “Smarter Stock Picking”...

Facing criticism from a colleague over modifications he made in his economic analysis, the famous British economist John Maynard Keynes once said: “When the facts change, I change my mind. What do you do, sir?” Keynes’ question is a relevant one for investors. Unless you...

One theory of valuation is that a stock is worth the cash distributable to shareholders. An advantage to methodologies based on this concept is that cash distributions are not influenced by accounting adjustments. Cash is either returned to shareholders or it’s not. Investors...

Not all that long ago, “stock-picking” entailed tedious, relentless research. In order to get the complete financial picture of a firm and its shares, individual investors had to scour the pages of financial newspapers or pore over scores of thick, dull annual reports. You...

The Dow Jones industrial average finally crossed the 20,000 mark this morning. It took the blue-chip average 64 days to make the 5.1% leap from when it first crossed 19,000 on November 22, 2016. The big reason the move has received so much attention is 20,000 is a big, round number....

In investing there are a few universal truths. One of them is that at some point, a stock’s price will fall. There are myriad reasons why a stock’s price falls and it is up to you to determine the cause. By identifying why the price is falling, you are far better equipped...

Covered call writing is one of several ways options are traded. While often done on an ad hoc basis, one can assemble and manage a portfolio of covered call option positions as either a part of a larger portfolio or on a stand-alone basis. Such an approach does require more detailed...

What’s the allure of dividend-paying stocks? Dividends provide a segment of return that is always positive. Increases in dividends provide an increased positive cash return and, consequently, increase the value of the instrument producing that return. Positive fluctuations are...

This article originally appeared in the December 2012 issue of the AAII Journal. When searching for stock investing candidates, it may be easy to come up with a list of meaningful screening criteria, but building and applying a cohesive set of criteria can be challenging. Screening...

This article originally appeared in the July 2014 issue of the AAII Journal. It may come as a surprise to those who have placed their nest eggs in an S&P 500 index fund, or an actively managed version thereof, that they are actually making a decision to exclude a significant...