The average company lifespan in the S&P 5oo index is less than 20 years and falling compared to an average of 30 years in the 1960s. While there are many reasons such as buyouts, mergers, going private, etc. for this situation, one of the main reason is technological changes. As technology changes quickly today’s Amazon(AMZN) …
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Stocks perform well relative to other assets in the long run measured in years or decades. This is possible because even if there are bear markets during any given time period, they usually are shorter than bull markets. For example, over a 10 year period if a bull market leads to a 50% increase with …
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One of the investment theories with respect to investing in dividend stocks is that when the dividend grows year after year the stock price will appreciate as well. So identifying companies that consistently raise their dividends would generate excellent returns as the share price also grows in tandem. This is because dividends are out of …
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In this blog, I have written many posts about the advantages of owning foreign stocks. For example, they offer a portfolio the benefits of diversification. However holding overseas equities in retirement accounts such as Traditional IRA, Roth IRA and other qualified retirement has many disadvantages. In this post, let’s take a quick look at two …
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The US equity market has become highly concentrated. A handful of firms particularly in the tech sector account for most of the gains earned so far this year. I recently came across an article by Rory Kutisker-Jacobson at South Africa-based Allan Gray who noted a different perspective on the concentration in the US market. Below is …
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