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) …

Continue reading ‘The Average Company Lifespan in the S&P 500 Index is Falling’ »

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 …

Continue reading ‘Historically Bear Markets Tend To Be Shorter Than Bull Markets’ »

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 …

Continue reading ‘When the Dividend Grows the Stock Price Follows: A Case Study’ »