Portfolio Management

Introduction: The Investor’s Struggle with Market Timing Even if you are a long term investor who is not concerned with short term price fluctuations, you still want to purchase stocks at low prices and sell at high prices. You do not actively try to time the market, but there is no reason to not take

I have made a lot of money buying stocks on margin. But I have also lost money. Investing on margin can bring rapid gains to your portfolio, but if you are not careful, it can also blow up your portfolio. We don’t want to blow up our portfolios. Let’s review how we can avoid this.

Most investors believe that once they pick good stocks, their main job is done. This is not true. First, you need to decide how much of your portfolio to allocate to each stock. You may choose to keep it simple and just equal weight everything. Or you may want to use more sophisticated strategies to

Introduction: Why Every Investor Needs an Investment Policy Statement How do you stay disciplined when markets are unpredictable? An Investment Policy Statement (IPS) serves as your financial roadmap. It guides your investment decisions and keeps you focused on long-term goals. This document provides a framework that helps you manage the emotional and strategic challenges of

Harry Markowitz said this about diversification in investing: Diversification is the only free lunch in investing. As I write this towards the end of 2024, we have seen a number of years where a very select group of stocks has dominated the market returns. The Magnificent 7 stocks, for example, contribute to a large chunk

You want to buy the best available value stocks in the market today. How do you go about finding them? What you need is a stock screener. This is a software or website that allows you to find stocks based on the criteria that you define. Most people know to look for value stocks using

Most investors approach long term investment portfolio allocation very casually. Typical processes involve investing whatever cash is available, investing an equal number of shares among all stocks in the portfolio, investing an equal number of dollars among all stocks in the portfolio, or setting some thresholds (I will invest $x to start and if the