Last Friday, SIRI dipped below $5.50, which was my level to pickup another 70 shares as planned. I’ve been meaning to try out some options trading, and with the stock so low I thought what the hey. Why not buy 500 options rather than 70 common shares?
Here’s my first lesson for options trading:
1. Make sure you can purchase options through your broker before you look for some to buy.
In Part 1 of this article, we looked at how to use the Morningstar Premium Fund Screener, and I showed you two screens I use to select top funds for my portfolio. This article will move on from the screening phase of the stock screening process to the analysis phase, where we actually choose the candidates for possible investment. The key to successful analysis is understanding how to read the results views provided by the screener. In addition to the basic views provided by Morningstar, the premium screener also allows you to create up to two additional views. By creating custom views that package your most important statistics together, decision making can be more rapid and accurate.
I review of NetworthIQ, a website to keep track of your personal net worth. At its best, the site could usher in a new era of fiscally responsible citizens. In the least, you’ll be able to keep tabs on my financial growth.
Pro forma earnings (sometimes spelled “proforma” or “pro-forma”) are included by some companies in their quarterly or annual reports as a way to discount “unusual and non-recurring transactions” to more accurately reflect their true financial health. But while actual earnings are calculated using Generally Accepted Accounting Principles (“GAAP”), the US standard for corporate accounting, pro forma earnings are used as guidance for investors to demonstrate how much money a company would have earned had unusual and one-time charges not occurred. As one would expect, pro forma reporting has had a history of abuse and therefore should be approached with great care.
Ramit Sethi from www.iwillteachyoutoberich.com proposes a financial makeover for 2006. And I give updates on SIRI, AMD, and YHOO.
There’s a very important topic that I’d like to discuss briefly here, and it’s in regards to starting your own business. Fundamentally, a business is an investment. Any company’s goal is to generate profits for its owners, and in the case of a small business, a salary as well. The problem with businesses is that they’re a job. And not only are they a job, they also cause a lot of stress and a generally poor social life during the initial years.
Real estate has always been a passion of mine. Many people have made fortunes off real estate and growing up with a father in the business, I understand how the model works. However, getting started is a big effort, which involves management, construction, marketing, and all the other jobs associated with starting a business. This is not coincidence — buying investment property is a business.
Last week, we introduced 401(k) retirement plans and focused on their main two benefits:
This week we’ll close out the discussion with a little talk on Roth 401(k)s and some tips for choosing Funds inside your 401(k).
Monday Reading Mark Cuban has written some interesting articles on investing. I think they’re a good read; it’s not the typical stuff you would hear from other investing pundits. – My Investment Advice for 2006 – The Stock Market is for Suckers – Long Tail of Investing Main takeaways: – When you buy stock, someone (more…)
For most people, the 401(k) savings plan offered by their employer is the first investment worth making. This article is meant to introduce you to the 401(k), why it’s often a good deal, and how to get started.
Frank bought me The Only Investment Guide You’ll Ever Need by Andrew Tobias for Christmas, which finally arrived at my doorstep on Saturday. With the assistance of Tobias’ great sense of humor, it’s a quick and enjoyable read. The book provides sound advice on when it’s appropriate for people to begin considering their investment options, and what those options are.
