Subscribe
Posts
All Comments
Saturday, February 27, 2010
Thursday, February 11, 2010
Thursday, February 4, 2010
The Bernie
Biannually we will present our most coveted award, The Bernie. This award seeks to share with the rest of the investment community the stupidest material we have had the honor to read. Also, The Idiot’s Guide to Investing would like to take this time to send our gratitude to all those dolts out there for their continued dedication to the art of idiocy.
If you would like to submit a posting that you have read for consideration, please send it to: idiotsguidetoinvesting@gmail.com
If you would like to submit a posting that you have read for consideration, please send it to: idiotsguidetoinvesting@gmail.com
Wednesday, February 3, 2010
Calculating Actual Performance:
We are asked Frequently how to determine actual performance. Here is an example for a one year investment of $1800 in Altria Group (MO)
Current Price (current value) ……………$2120
Purchase Price (Amount Invested) …. $1800
Gain or (loss) ……………………….. $320
Add Dividends ……………………… $144
Total ………………………………… $464
$464/1800 = 0.257777
Multiply by 100 = 25.7%
26% Return
Divide by the term for longer periods. Pretty simple, ay!
Often, the dividend(s) is overlooked, but they are a big part of the return which keeps on giving.
Importantly, if you reinvest the dividend, which in this case would buy approx. 7.2 shares @ $20 per share which will increase the div. amt. every quarter; thus, the magic of compounding begins.
Current Price (current value) ……………$2120
Purchase Price (Amount Invested) …. $1800
Gain or (loss) ……………………….. $320
Add Dividends ……………………… $144
Total ………………………………… $464
$464/1800 = 0.257777
Multiply by 100 = 25.7%
26% Return
Divide by the term for longer periods. Pretty simple, ay!
Often, the dividend(s) is overlooked, but they are a big part of the return which keeps on giving.
Importantly, if you reinvest the dividend, which in this case would buy approx. 7.2 shares @ $20 per share which will increase the div. amt. every quarter; thus, the magic of compounding begins.
Tuesday, February 2, 2010
Online Stock Market Community Warning:
This is an Urgent Public Service Announcement: Due to the increased amount of bullshit we have been reading lately the following warning has been issued:
The online stock market community is largely full of muttonheads and fools pretending to be successful traders or self-appointed experts on everything from commodities, stocks, currencies, all the way to grasshopper futures and beyond. Sadly, these communities are a virtual cesspool of the most misguided morons you will likely ever stumble across. So, this is a forward warning; be weary of everything you read on an investment community message board or forum. If you are too lazy, naïve, or unwilling to learn for yourself and/or conduct the research yourself to confirm the information, please do your money a favor by leaving it in the bank or by hiring a professional manager.
This is not a test; this is an actual emergency.
The online stock market community is largely full of muttonheads and fools pretending to be successful traders or self-appointed experts on everything from commodities, stocks, currencies, all the way to grasshopper futures and beyond. Sadly, these communities are a virtual cesspool of the most misguided morons you will likely ever stumble across. So, this is a forward warning; be weary of everything you read on an investment community message board or forum. If you are too lazy, naïve, or unwilling to learn for yourself and/or conduct the research yourself to confirm the information, please do your money a favor by leaving it in the bank or by hiring a professional manager.
This is not a test; this is an actual emergency.
Subscribe to:
Posts (Atom)