Red. You've bought a stock you thought will do well and now you're five, ten, maybe even twenty percent down. You look and your portfolio and think to yourself. Shit... what do I do? You're faced with 3 choices. Cut your loss, average down or just hold the stock and pray that it recovers. Let … Continue reading Facing Your Losses
One of Warren Buffett’s investment rules is to only invest in companies with an economic moat. So what exactly is an economic moat? “In business, I look for economic castles protected by unbreachable ‘moats’.” - Warren Buffett Simply put, the metaphoric “castles” are companies and the moats around those castles are special qualities that they … Continue reading Investing in Companies with Economic Moats can give you an Edge
Although not as common as the P/E Ratio, the P/S Ratio is also a very useful indicator when seeking for above average returns. Billionaire investment guru and bestselling author Kenneth Fisher believes that the Price to Sales Ratio reveals a lot more than the Price to Earnings Ratio. What is the Price to Sales … Continue reading CapitalistLAD Guide to Ratios: P/S Ratio
New to investing? The P/E Ratio is one of the most common ratios used by investors and speculators when choosing a stock. What is the P/E Ratio: P/E is short for Price to Earnings. It is calculated by dividing the price of the share by the past year’s Earnings Per Share (EPS) of the … Continue reading CapitalistLAD Guide to Ratios: P/E Ratio
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