Archive of entries posted on March 2016

Knowledge is Power: Buyback Mirage, Damagers of Capitalism, Cartels Edition

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Thought of the day: By how many billions of dollars retail shareholders will be wealthy if legalized looting by fat cats is outlawed? Four lessons to help you be a good investor when it feels like the stock market world is coming to an end, Financial Post Sky-high executive pay is damaging capitalism , MoneyWeek Why investors …

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Dividend Growing Stocks Outperform Dividend Payers

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Companies that grow dividends year-after-year tend to outperform based on total returns those that just pay dividends. One of the reason for this outperformance is due to the effect of compounding. When additional shares are purchased with dividends reinvested every year, over many years the returns are amplified. The following chart illustrates the above theory: …

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Why Portfolio Diversification Is Important

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Diversification in a portfolio is an important strategy for long-term success. A well-built portfolio should not be concentrated heavily on a single stock or asset class or sector. Rather a portfolio should hold various assets such as growth stocks, dividend stocks, domestic stocks, foreign stocks, commodities, ETFs, closed-end funds, bonds, etc. Holding a diversified group …

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Emerging and Frontier Markets vs. Rest of the World

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Emerging and Frontier markets are relatively big in terms of factors such as population, land, total number of listed companies, etc. However based on market capitalization of equity markets they account for less than 50% of the global total market capitalization. This is because equities in these markets permanently trade at a discount to equities …

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