Categories

Archives

Site search

Links:


The Psychology of Market Investing.

Become a investor in the market.

Buying stocks OR paying off debt

Buying stocks or paying off debt.  My suggestion is that given the stocks are selling low, it is best to buy stocks and pay off debt slowly.  That is, if you have a reasonable amount in stocks while they are low and start paying off more in debt when stocks go up.  If you are paying around 8-11% in interest in debt, it is best to pay insterest only and invest the rest in stocks.
When you feel you have enough invested, then you can start paying more on your debt.  In this way, while you are paying off debt, your dividends will continue to grow.
Invest wisely
Shoebox

A global giant- Marlbroro

STOCK: PM
Philip Morris International, or PMI, is the world’s leading tobacco company and the third most profitable international consumer goods company. It generated revenue in excess of $55 billion and operating profit of roughly $8.9 billion in fiscal 2007.

The company sells its products in some 160 countries and owns seven of the top 15 brands in the world, including Marlboro, Parliament, Virginia Slims, and L&M. In all, PMI held a 15.6% share of the international cigarette market in 2007. The company is especially strong in the higher-margin premium segment of the market, where it estimates that it held a 52.4% share (excluding China) in 2007.

Habits for Wealth- Podcast #1

Possibly related posts: (automatically generated)

* Free eBook Found : Seven Habits of A Highly Successful Trader
* LINKIN PARK - Breaking The Habit -vedio download

Tyson Foods

i TOLD you guys to get into tyson almost two years ago. get into their
drip” program.

Where’s you get that from?

All I can find is Tyson expects international sales to rise to $5
billion from $3 billion by 2010.

Fool.com: Drip Portfolio

http://www.fool.com/dripport/whataredrips.htm

Drips are offered by companies to their shareholders as a way to buy stock directly from the company (usually through a transfer agent) in very small amounts to large amounts, and usually on a monthly basis if desired. The plans also reinvest all or partial dividends paid (it’s up to the shareholder) into more stock, thus the name “Dividend Reinvestment Plan.”

Now, we know Drip or DRP isn’t a very Foolish name, but for now it gets the point across: You’re reinvesting dividends, but you’re also “dripping” money into your holdings every month, ideally. Drip… drip… drip…. And that adds up over time.

The advantages of such plans are numerous, the most obvious of which being: You don’t need a large amount of money to start. You can open an account with as little as one share of stock. Let’s look at some other “perks.”

15 minute retirement plan

A nice and easy steps to follow and learn about retirement plans.. a small pdf file to download.

What is Risk

Simply define risk as uncertainty: the possibility that an outcome might be different than what is expected. Risk according to Emmett and Therese Vaughan Risk is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.

Mathematical Illusion: Why Dollar-Cost Averaging Does Not Work

Mathematical Illusion: Why Dollar-Cost Averaging Does Not Work
by John G. Greenhut, Ph.D.


Executive Summary

  • In spite of the weight of evidence provided in academic literature against the strategy of dollar-cost averaging, DCA continues to be practiced by investors and recommended by financial advisors.
  • Beyond its psychological appeal, the popularity of the approach can be said to stem from simple illustrations that show DCA resulting in greater stock holdings across a stock market cycle than is achieved by a one-time, lump-sum investment. Alternatively presented, the average cost per share purchased under DCA is demonstrated, by example, to be less than the average price of stock over its cycle.
  • This paper challenges that illustration. It shows that variations in stock prices should not follow the mathematical pattern assumed in the examples. In fact, the price movement should follow a particular mathematical form that yields the same number of shares purchased, whether by DCA or lump-sum investing.
  • Absent any benefit from stock price volatility in reducing average cost, the performance of DCA rests on the trend in stock prices, with DCA outperforming in downward markets and lump sum outperforming in upward markets. Since the latter case is the norm over time, customary empirical findings in the finance literature of underperformance by DCA are explained.
  • The theory in this paper is confirmed by examining a broad sample of stocks, contrasted over the high-growth trend in the second half of the 1990s against the general market malaise over the following half-decade. In the absence of this trend, DCA and lump sum provide equivalent results.