intrinsic stock value
We invest for the future. How well that works out depends on two things. What will your investments be worth in five years, ten years, or twenty years as valued in dollars? And, what will inflation do to the purchasing power of the US dollar?
Value stocks are leading the charge as the economy emerges from recession caused by the Covid-19 pandemic. What are the best value stocks for 2021? To make the best picks in this category you need to know what constitutes a value stock and how value stocks differ from growth stocks. Growth stocks often sell for higher prices than their current fundamentals would seem to support because investors want to position themselves for long term growth and profits. Value stocks are often companies that generate steady profits over the years but don’t excite growth-conscious […]
Why invest in banks? Banks are generally a good avenue for value investing, dividend stocks, and intrinsic stock value. When the economy goes into a recession, bank stocks fall in price. However, when you look at their intrinsic stock value, these investments are generally bargains. This is because, over the years, banks are money-makers. They are usually dividend stocks as well. And, if you are interested in investing in Canada, Bank of Canada, Bank of Nova Scotia, Canadian Imperial Bank, and Toronto-Dominion Bank have all been paying dividends without fail for more than a century.
The point of investing is to make money on your money. Judging the earning potential of an investment is basic to making this work. This is the case for both long term investors who buy and hold for years and for stock traders who attempt to time the market in search of short term profits. The earning potential of any investment depends on appreciation in value, realized earnings in the short term (dividends), and the value of the currency in which the investment is denominated. The last factor is affected by inflation and the volatility of the Forex market.
The stock market has taken a big hit with the double whammy of the coronavirus pandemic and an oil price war between Saudi Arabia and Russia. Considering that things could get even more difficult before they get better, we wrote recently about safe investments for a ten year recession. In general, we stick to general principles for investing in stocks and only mention individual investments as examples. However, there is one investment opportunity in the current market mess that we believe is worth looking at. Warren Buffett’s company has been stockpiling cash for a […]
The twin shocks of the coronavirus and the oil price war have hit the market hard. How far could stocks fall? With the possibility of more market weakness in mind, we look back at the 1929 stock market crash leading up to the Great Depression for indications of what is to come.
The Stock Market Crash that Ended the “Roaring Twenties” Stock Market
The 1929 stock market crash that ushered in the Great Depression was not a one day event and was not confined to October of 1929. There was a 10% correction of the market in […]
The long awaited market correction has happened. Is now the
time to invest or will the coronavirus wreck more havoc on the world economy,
the stock market, and your own portfolio? Is the silent warning for investors to hold on to cash still
valid, or are their bargain investments today? How do you assess intrinsic stock value and pick the best stocks to invest in when there is still so much
uncertainty? Here a few suggestions that we gleaned from the internet.
Invest in Disney for Cheap and for the Long Term
The Motley Fool writes
that Disney stock may never be this low again. We wrote […]
Despite continual nay-saying, the bull market has continued on its course, driven by profits. Corporate earnings may be taking a nosedive as we see from the most recent quarterly projection from Apple. In fact, as the coronavirus takes hold in countries outside of China, there is concern of a global economic meltdown. The New York Times writes about the threat of a pandemic in Italy.
As Italy locked down 50,000 people in 10 towns to contain the first major coronavirus outbreak in Europe – and a fifth person there died from the virus – […]
Everybody who invests has a starting point. They hope to experience profitable investing over the years. But, they may fall prey to bad stock tips, pump and dump schemes, or other investing pitfalls. On the other hand, they may choose solid dividend stocks or investments where they will not lose any money but will forego huge profits. Choosing the best investments of new investors depends on their risk appetite, risk tolerance, investment timeline, and the time and energy they have available for managing their investment portfolio.
Best Investments for New Investors Today
Over the long run, […]