Stocks or Bonds

Stocks or Bonds

Stocks or Bonds for Your Retirement Account? Stocks are riskier than bonds which is why they have a higher expected return. The right risks, taken Foolishly, can pay off in the long run. “Behold the turtle. He makes progress only when he sticks his neck out.” — James Bryant Conant, American diplomat In our Foolish Steps to Retirement, we recognize that we’re going to have to take risks to reap rewards. Market risk (the chance you will lose money) and reward (the chance that your investments will head skyward) travel…

Investing and gambling

Investing and gambling

Investing and Gambling are not the same thing It’s the Monday following the second leg of the Triple Crown and a whole bunch of people lost money betting on the Preakness. Like the stock market, the allure of gambling is strong because many people think that having more money will solve most of their problems. And while there are some similarities between investing and gambling we should be clear that they are not nearly as similar as some people might believe. First, some definitions: “Gambling is placing capital at risk…

Why Should I Invest?

Why Should I Invest?

Have you ever ask yourself “why should I invest?” Welcome to Investing Basics! If you’ve found your way here, chances are you’ve either got some money socked away or you’re planning to do so. But first things first. Why is investing a smart idea? Simply put, you want to invest in order to create wealth. It’s relatively painless, and the rewards are plentiful. By investing in the stock market, you’ll have a lot more money for things like retirement, education, recreation — or you could pass on your riches to…

Profit vs Loss Ratio

Profit vs Loss Ratio

Strategic Investing, How to Setup a Profit vs Loss Ratio A profit vs loss ratio is something that can by itself help you succeed investing in the stock market. They work wonders for new traders, and are used by professionals as well. This article will explain what a profit vs loss ratio is, how to set one up, and how to stay disciplined to utilize it effectively. What They Are A profit vs loss ratio is a plan that you put in place to limit your downside exposure on all…

5 Investing Myths

5 Investing Myths

5 Investing Myths That Will Hurt You In the summer of 1885 William R. Travers, prominent NYC businessman and builder of Saratoga Race Track, was vacationing in Newport, Rhode Island. He pointed out a long line of beautiful yachts tied up in the harbor. When he was informed that they all belonged to Wall Street brokers he simply asked, “Where are their clients’ yachts?”. When it comes to investing, there is nothing more dangerous to an individual’s future outcomes than falling prey to the many myths perpetrated on them by…

Stock Buyback Plans Can Backfire

Stock Buyback Plans Can Backfire

Stock Buyback Plans, Seen as Shareholder Boon, Can Backfire Stock buyback plans are a boon for shareholders, right? That’s been the spin, anyway, as hedge fund activists have pushed corporate managers to spend billions repurchasing shares in recent years. But not all stock buyback plans are created equal, and exhibit A is LPL Financial Holdings, a brokerage and investment advisory firm in Boston. LPL recently completed a $275 million stock buyback spree that was exceedingly costly, increased the company’s debt and wound up primarily benefiting a powerful insider investor. Shareholders typically like repurchase programs because…