The Stock Market and the Media: Turn It on, But Tune It Out

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Deep Value Investing Has Not Gone Out of Style One of the fundamental tenets of value investing, first outlined by Benjamin Graham in his seminal work “The Intelligent Investor” is the concept of margin of safety. Margin of safety simply refers to how much…

 

An Election Trend That Might Not Be Repeatable

The election day is just 11 days away, thank goodness. As it nears, articles and reports are appearing about the election’s impact on the market. We’re going to discuss the data in the November Stock Superstars Report, which will be posted online Friday evening, but I’ll share some of the data here as well. Rather…

 

AAII’s Most-Read Articles for September 2016

Here are the Top 10 articles from AAII.com for September 2016 (based on unique page views):   Why Buy Bonds If Interest Rates Will Rise? Starting a bond ladder creates income now and produces cash flow that can be used to reinvest if and when interest rates do rise. The Top 10 Economic Indicators: What…

 

Valuing Stocks Based on Their Dividend

The subject of valuing stocks by their dividend is discussed in the June AAII Journal, which was posted to our website yesterday. Specifically, Computerized Investing editor Jaclyn McClellan takes an in-depth look at Geraldine Weiss’ approach. I’m going to extend the conversation by discussing Weiss’ and other dividend valuation strategies. Weiss used a relative valuation…

 

Observations About Investing in a Low-Volume Stock

A few months ago, I bought a low-volume stock, Oregon-based Willamette Valley Vineyards (WVVI). I had seen the company’s name on a screen of liquor stocks I occasionally run and was prompted to take a closer look when the company sent us a prospectus for a preferred stock offering. (I think my wife put us…

 

How Impactful Are Changes in Analyst Ratings?

Before you give into any temptation to follow analysts’ recommendations, consider this conclusion from three researchers: “On average, analysts’ revisions are not highly correlated with subsequent long-run returns, indicating that analysts do not provide new information that is relevant for the long run for typical investors.” The finding is from an appropriately named paper published…

 

AAII Investor Update: Binary Option Contracts, A Really Bad Idea

Companies are very aware of our tendency, as humans, to overestimate the odds of making money. They use this to their advantage by pitching products and services as money-making opportunities that in reality are highly effective tools for separating us from our money. One bad idea for a financial product brought to my attention in…

 

AAII’s Top 10 Articles for October

AAII’s Top 10 Articles for October  16 Financial Ratios for Analyzing a Company’s Strengths and Weaknesses An in-depth look at the most commonly used financial ratios used for analyzing a company. The article includes a downloadable spreadsheet that automatically calculates these ratios using financial statement inputs you provide. This article has generated 12 comments. The…

 

AAII Weekly Features–To Trend or Not to Trend

This week’s AAII Weekly Features highlight these valuable AAII articles: “What Works”: Key Findings on Stock Selection Social Security Strategies for Singles To Trend or Not to Trend Calculating Intrinsic Value With the Dividend Growth Model The featured AAII stock screen this week is the Buffettology: Sustainable Growth approach. Our Member Question for this week…