Broad Market Diversification Can Help Avoid Large Losses

Diversification is one of the simplest ways to be successful in equity investing. Diversification can take many forms. For example, one can hold a mix of stocks, bonds, gold, real estate and cash. Or it is possible to diversify across many types of equities such as domestic and foreign or emerging, developed and frontier markets. …

Continue reading ‘Broad Market Diversification Can Help Avoid Large Losses’ »

Contribution of Price Appreciation and Dividends to the S&P 500 Total Return by Decade

Investing in dividend stocks is a wise strategy for many reasons including the fact that dividends alone account for one-third of the S&P 500’s Total Return from 1960 to 2019. So though the dividend yield is small for most US stocks relative to other developed markets they are still important from a long-term wealth building …

Continue reading ‘Contribution of Price Appreciation and Dividends to the S&P 500 Total Return by Decade’ »

Baillie Gifford Cuts its Tesla Stake by Half

Baillie Gifford, the Scottish investment manager has sold half of its take in electric car market Tesla(TSLA), according to an article at CityWire, UK. BG was the largest institutional investor in Tesla with holdings of about 40 million shares or about 8% of the company at one time last year. It is not surprising that …

Continue reading ‘Baillie Gifford Cuts its Tesla Stake by Half’ »

Value Stocks Beat Growth Stocks Over The Long Term

One of the questions on many investors’ mind these days is this: Are Value Stocks Better Than Growth Stocks? Or is value investing dead? This is not surprising since 2020 has been the year for growth. Growth-oriented stocks in the tech, renewable energy, Electric Vehicle(EV), internet retail, etc. industries vastly out-performed value equities. Some of …

Continue reading ‘Value Stocks Beat Growth Stocks Over The Long Term’ »