A cut-to-the-chase synopsis of Graham’s rules, which were based on buying stocks trading with a margin of safety.
One alternative form of momentum investing is to buy stocks trading near their 52-week highs. Another form is to buy stocks trading near their historical (record) highs. The former strategy—buying stocks trading at 52-week highs—has performed better than the latter.
Determining whether a stock is correctly valued requires the investor to estimate the value of the stock and compare the estimated value to the current market price.
Our Member Question for this week is:
This holiday season, do you plan to spend more or less than you did last year?
Vote to answer this week’s Special Question: Compared to last year, do you feel you are better off financially? How so?
Last Week’s Results:
As 2018 draws to a close, we asked our readers whether or not they have started making any moves with their investment portfolio with an eye toward next year’s tax bill. If so, we also asked what steps they are taking or plan to take before the end of the year.
One of the biggest difficulties for individuals interested in investing in stocks is getting started. This AAII e-book provides a general outline for analyzing stocks and walks through the process as it is practically applied to specific types of investment approaches. It first describes, in very broad terms, the basic process that is followed in fundamental analysis. It then goes into the various steps in more detail and shows how they can be adapted and practically applied to an individual’s specific approach using commonly found information sources.