Never lose money

3 years ago JCprojectfreedom 0
We dislike being wrong and pride is one of the wrong reason for holding on to a losing trade. This is different perspective if you are a long-term investor. Lose           Returns needed to  break even (%) -5% 5.26 -10% 11.11 -15% 17.65 -20% 25 -30% 42.86 -40% 67 -50% 100 Read More

Bad reasons to own properties

3 years ago JCprojectfreedom 0
There are lots of reasons to have your own property. You can live in it, it is relatively cheap to borrow money in today’s terms, and you are paying your own mortgage instead of helping someone else.However, there are other reasons why you should not own property.1. “Property is the sure way to get rich”Over Read More

Investors’ Most Common Behavorial Biases

3 years ago JCprojectfreedom 0
Status Quo Bias The investors been in a comfort zone will not be willing to do anything to change their present situation. For example, investors are willing to put their excess cash into a saving account and not willing to use them to invest in stocks and bonds as this results in a change to Read More

Seven Habits of Successful Investors

3 years ago JCprojectfreedom 0
The seven habits of successful investors Straits Times – A recent report from Allianz Global Investors on “The seven habits of successful investors” addresses concerns and problems commonly faced by retail investors. Here is an excerpt of the seven tips to guide you on your investment journey. HABIT NO. 1: KNOW YOURSELF AND CHALLENGE YOUR INTENTIONS Lessons Read More

Stock Research Checklist – Inventory

3 years ago JCprojectfreedom 0
In business, inventory is an important part of the process. After the manufacturing process is completed and the product is ready to market or sell to the customers, a business is left with inventory. What is the inventory buildup? As an investor, you need to calculate the inventory level as a percentage of sales and Read More

Stock Research Checklist – Assets

3 years ago JCprojectfreedom 0
Assets Trying to identify companies that have hidden assets that are overlooked is beneficial because those stocks trade cheaper meaning you can get more reward by investing in them. Does the Company Have Any Hidden Assets That Have Been Overlooked by Wall Street? Sometimes, Wall Street does not recognize the value of those reserves and Read More

Stock Research Checklist – Management

3 years ago JCprojectfreedom 0
When you are dealing with fast growing companies, pay special attention to how the business has been growing recently and what plans the management has in place to grow the business in the future. What is the Company’s Growth Recently? What Plans does Management Have to Grow the Business? As an investor, you need to Read More

Stock Research Checklist – Dividend

3 years ago JCprojectfreedom 0
If a business operates with stable cash flow and pays cash every quarter and the management does not have the opportunity to reinvest in the business, they can pay the dividend to the shareholders. If you are looking for income from your stock portfolio, you can select companies that pay conservative dividends and hold those Read More

Stock Research Checklist – Capital Investment

3 years ago JCprojectfreedom 0
Return on Asset = Net Income / Total Asset Total asset consist of debt and equity. This percentage gives the percentage of net income generated for the money invested which includes both debt and equity capital. As long as ROA is high, company shareholders will be greatly rewarded. What is the Company’s ROA for the last Read More

Stock Research Checklist – Profit Margin

3 years ago JCprojectfreedom 0
Net profit margin is a percentage in terms of how much net profit is generated from each dollar of revenue. Net profit margin = Net income / Revenue x 100 If a company increases its earnings, that is good. The next thing you need to identify is whether or not a company can maintain that Read More