Picking Good Investments, Not Good Stories

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Rebalancing Update: How Frequently Allocations Should Be Adjusted There was a reward for investors who stuck with their long-term portfolio strategies last year: positive returns. Despite the stock market’s dip, the drop and then rise in bond yields, and a panoply of surprising headlines,…

 

Dow 21,000 Reached in Record Time

Just seven weeks ago in this column, I was discussing how the Dow’s inability to cross the 20,000 barrier had reached historic proportions. At that time, the Dow had traded within 1% of the 20,000 mark for 23 days. Eventually, it took 30 days after getting within 1% of 20,000 for the Dow to crack…

 

Going From a Stock Screen to a Real Portfolio

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 either spent hours upon hours in the local library or you…

 

AAII Journal November 2016 Issue Now Available

The November 2016 AAII Journal is Now Available Online.   Feature Article: Competition Has Made Indexing a Winner’s Game Better analysis, more trading and more professional investors have made it even easier to lose at active investing, and win by indexing.     Also in This Issue: Portfolio Strategies: Conversations on Picking Good Stocks and Funds…

 

Do You Need Growth for Successful Stock Picking?

A new stock screen I created omits one characteristic that may surprise some (or perhaps many) of you: growth. Nothing in the screen requires a passing company to be growing revenues or profits. It is an admitted deviation from how I’ve previously looked for stocks. I’m not alone in omitting growth. The four AAII Stock…

 

Using ETFs to Identify Quality Stocks

If one were to survey investors about what traits make a stock attractive, the top of the list would include an attractive valuation, a reasonable expectation of a price increase (particularly sooner rather than later), a sound underlying business model and good fundamentals. The first two traits are easy to identify: seek out below-average valuations…

 

Most Investors Looking for Consistent, Growing Dividends

Last week we asked our readers what they consider to be the best long-term investment, and here is what they said: Of the 2,377 people who voted by 7:15 a.m. (Central) on Sunday, July 24, 70% view stocks or mutual funds as the best long-term investment. Real estate came in a distant second with 24%…

 

Constructing Winning Stock Screens

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Going From Stock Screen to Real Portfolio Today, quantitative stock-picking screens are just about everywhere. A few clicks on any of a myriad of financial websites, and you’ve got it. AAII and other sites even have a number of guru-inspired screens. But choosing a good strategy…

 

China and Powerball Are Testing Our Financial Emotions

Financial events on both sides of the Pacific Ocean are testing the ability of us humans to keep our emotions out of our financial decisions. On one side we have fear, with China’s stock market plunge. On the other side, we have greed, with the Powerball jackpot now worth an estimated $700 million. Ironically, the…

 

Investment Wisdom From Wall Street’s Legends

This article originally appeared in the November 2014 issue of the AAII Journal. “A country of security analysts would still overreact. In short, even the best-trained investors would make the same mistakes that investors have been making forever, and for the same immutable reason—that they cannot help it.” —Seth Klarman The vast majority of experienced investors…