Why Stock Returns Aren’t Just About Market Risk A staple of business schools all across the country, Capital Asset Pricing Model, or CAPM, is traditionally considered a model sufficient to explain the stock returns. CAPM tends to paint all stock returns with a single brush – a function of market risk. You probably know the […]
The Fama and French 3 Factor Model – A Game Changer for Value Investors Read More »
As value investors, we invest in stocks selling at a discount to the intrinsic value, and expect the stock price to appreciate and approach the fair value which gives us a profit. By definition, we are looking for capital appreciation. Typically, income tends to be an after thought in this analysis. In fact, most value
How to Leverage Dividends in Value Investing Read More »
The Timeless Debate on Dollar Cost Averaging Dollar cost averaging (DCA) is one of the most popular investing strategies for retail investors. It involves consistently investing a fixed dollar amount into stocks or funds at regular intervals, regardless of market price. Over time, this approach helps smooth out volatility and removes emotional decision-making from investing.
Dollar Cost Averaging: How Can Value Investors Approach This Strategy? Read More »
The market will test you. Over and over again. No matter how experienced you are as an investor, no matter how rational you think you are, moments of panic and uncertainty will creep in. The question is not whether downturns will happen, but whether you will react rationally or succumb to emotion when they do.
Introduction: Why Should Value Investors Care About Investing in REITs? When value investors think about undervalued assets, they typically focus on stocks trading below their intrinsic value. But the same principles apply to investing in REITs. While many investors view REITs purely as income-generating vehicles, they can also present compelling value opportunities when mispriced by
Investing in REITs: A Value Investor’s Perspective Read More »
Why Dividends Matter—Even If They’re Not the Primary Focus Many investors dismiss dividends as irrelevant, arguing that they do not impact a company’s intrinsic value. The logic is that whether a company retains earnings or distributes them as dividends, the value of the business remains the same. While this argument holds in theory, reality is
Do Dividends Matter in a Value Investor’s Portfolio? Read More »
Why Market Cycles Matter in Value Investing The market moves in cycles, swinging between optimism and pessimism, creating opportunities for patient investors. While value investing focuses on identifying fundamentally strong businesses trading below intrinsic value, recognizing where we are in the cycle can help enhance returns and avoid value traps. Understanding cycles is particularly important
How Smart Investors Use Market Cycles to Maximize Value Investing Profits Read More »
Welcome to your daily roundup of news stories and market updates tailored for long-term investors. Whether you focus on value investing, small-cap opportunities, dividend growth strategies, or building an income factory portfolio, we’ve got the latest developments to keep you informed and empowered. Let’s dive into today’s highlights. 1. Economic Outlook Update: 2. Earnings Report
Daily Investing News for Long-Term Investors – January 29, 2025 Read More »
High-yield covered call funds are gaining popularity among income-focused investors. With the promise of steady cash flow and enhanced yields, they seem like an obvious choice for anyone looking to generate passive income. But do these funds truly deliver on their promise, or are there significant trade-offs hidden beneath the surface? This article considers how
High-Yield Covered Call Funds: Unlocking Income Potential or Risky Gamble? Read More »
Value investing thrives on simplicity. Earnings yield is one of the most straightforward tools in a value investor’s toolkit—and one of the most effective. It makes the investment process clearer by showing you what kind of return you might expect based on the price you’re paying. Unlike complicated valuation models that can feel like solving
Using Earnings Yield as a Proxy for Value Read More »
