profit to earnings ratio

Investing in Value Stocks

A good way to make a profit in the stock market is by investing in value stocks. Value stocks are actually undervalued stocks such as in today’s energy sector. Investopedia defines a value stock. InsiderFinance: Level the Playing Field A stock that tends to trade at a lower price relative to it’s fundamentals (i.e. dividends, […]

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Sell Overpriced Stocks

The stock market is taking a hit as investors choose to sell overpriced stocks at the start of 2015. Fundamental analysis of intrinsic stock value is how successful long term investors determine whether to buy stocks with value or sell overpriced stocks. A common approach is to compare the P/E ratio of a stock with […]

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When to Sell Stocks

When the market has been on a long term rise it is often wise to consider when to sell stocks. Even buy and hold long term investors need to get out of stocks that have run their course. In retrospect, fundamental analysis of saddle makers, wagon makers and carriage makers at the start of the […]

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Investment Risk Management

Investment risk management includes diversifying to balance business risk, being wary of overpriced stocks, and not confusing short term goals with long term investing techniques. Picking new winners is always the name of the game but picking them at the best price, diversifying to reduce sector risk, and choosing stocks whose prospects match your long term goals are good ways of managing investment risk.
Business risk is the risk of competition. Effectiveness of management, developing and promoting products, penetrating markets, and doing so in the most cost effective and profitable manner all go into a profitable company. Business risk is also […]

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