Stocks

Review: Finding the Next Starbucks

A while back, I read Louis Navellier’s The Little Book That Makes You Rich, which was intended to serve as a simple introduction to growth investing. For those unfamiliar, growth investing means that you seek out and invest in individual stocks that show distinct signs of growing rapidly over the next few years – think …

Should I Invest After a Small Dip in the Stock Market?

This week, The Simple Dollar attempts to address challenging questions in personal finance by looking at both sides of the story and figuring out some of the factors you need to look at to make a decision. Several times this year, the stock market has dipped more than 1% in a single day. If you …

Categories: Investing, S&P 500, Stocks

The Pump and Dump Stocks Email Scam Explained

A reader wrote to me recently asking about the proliferation of spam emails concerning individual stocks: I often get two or three spam emails a day touting a specific stock. I’m smart enough to realize that this is some kind of scam, but how exactly does it work? This type of scam is called a …

Categories: Investing, Stocks

I Want To Buy Shares In An Individual Company. What Do I Do?

I’ve been regularly contacted by readers who want to invest some of their money specifically in the stocks of an individual corporation for various reasons, mostly relating to people finding companies that match their personal values. For most individual investors, there are really two options to follow when buying stocks of a specific company: DRIPs …

Categories: Investing, Stocks

Understanding Stock Options: A Brief Look

A reader (whose identity shall remain secret) writes: I had a question about stock options that I was hoping you could answer. I work for a BIG internet company (you can probably guess which one). I have 114 stock options; a quarter of which vest each year for four years with a 10 year lifespan. …

Categories: Stocks

Individual Stock Picking Advice

Last week, I wrote about Baby Steps For Individual Stock Picking, which gave starter tips on how one can invest in individual stocks. While I tend to primarily invest in low-cost index funds, I am interested in investing in a few individual companies whose business policies I greatly admire. Why invest in individual stocks at …

Categories: Investing, Stocks

Stock Picks: Baby Steps For Individual Stocks

One of the most regular questions I get asked is how I feel about individual stock picking. Should a good investor have individual stocks as part of their portfolio and, if so, how do they fit? From my perspective, individual stock picks are fine as a small part of an overall portfolio. Here’s my reasoning …

Remember This Earlier Post? Finishing Up A Wall Street Lesson From Ben Stein

A little over a month ago, in late February and early March, the stock market in the United States took an 8% hit in a little over a week, a very painful drop for anyone with a stock investment. For me, this was a rather nerve-wracking time, as it was the first time I had …

Is Dave Ramsey Making Up Stuff About The Stock Market?

I’ve heard many times that Dave Ramsey makes some very broad generalizations about the broad stock market when convincing listeners of his radio show to invest their money in a broad index fund. I never really paid much attention to this, mostly because if you don’t speak in some degree of generalization, it’s very difficult …

Categories: Dave Ramsey, Stocks

Debunking Henry Blodget

Hopefully that title got your attention. In fact, it’s a variation on the subtitle of an article posted to Slate.com yesterday, Spend Every Dime!, which says that you’ll actually lose money by saving and investing it, so why not spend now? Normally I would ignore such tripe, but this article has been making the rounds …

Personal Finances 101: What Does P/E Mean?

Recently, I received a lengthy email from a reader who had a ton of basic personal finance questions contained within. I thought it might be interesting to start an irregular “personal finance 101″ series to answer and explain some of her questions. This question is worth quoting: What does P/E mean? I understand a stock …

If You Buy When The Market Is Down, When Do You Sell?

Yesterday, I discussed in detail my reasons for making a substantial stock buy even in the face of a 5% market drop in the last week. In response to that, Lazy Man made the following comment: I think it’s interesting that everyone always says to buy when others are selling, but while the Dow was …

Categories: Investing, Stocks

Why I Bought Stocks Today, Even With Stocks Down 5%

I had originally written a nice, long article about why the stock market downturn of the last week is nothing to worry about – and also about how, just this morning, I increased my holdings in index funds (namely, the Vanguard 500) by about 50% (it’s true!). Just as I was about to post this …

Categories: Investing, Stocks

The CNBC Million Dollar Portfolio Challenge

Ever wanted an opportunity to play around with individual stocks with no risk, just to see how good your stockpicking skills are? CNBC is running a contest called the Million Dollar Portfolio Challenge which basically amounts to a fantasy stock market. You can spend one million fictitious dollars buying stocks, and the person with the …

Categories: Games, Investing, Stocks

How To Invest In Stocks For Beginners

After digging myself out of a financial meltdown, I realized I needed to start investing for the long term in order to secure a good life for myself in the future. I read a few books on stock investing, but they really didn’t click for me at first; I needed something tangible to wrap my …

Categories: Investing, Stocks

Review: Jim Cramer’s Mad Money

When I picked up Cramer’s first investment book, Real Money, I fully expected it to be obnoxious and loud, like the book’s namesake. Instead, I was rewarded with a very interesting read – one that packed a lot of information for beginning individual investors into one thin volume. It was a fast and enjoyable read, …

Jim Cramer’s Mad Money: Buy or Don’t Buy?

This week, The Simple Dollar takes a look at the new investing book from Jim Cramer, Mad Money. This book is surprisingly different from its predecessor, Real Money, in a number of ways. I quite enjoyed the first one; will I enjoy this one, too? Let’s find out! Before I even get started, let me …

Jim Cramer’s Mad Money: The TV Show

This week, The Simple Dollar takes a look at the new investing book from Jim Cramer, Mad Money. This book is surprisingly different from its predecessor, Real Money, in a number of ways. I quite enjoyed the first one; will I enjoy this one, too? Let’s find out! The remainder of the book is focused …

Jim Cramer’s Mad Money: Other Investing Advice

This week, The Simple Dollar takes a look at the new investing book from Jim Cramer, Mad Money. This book is surprisingly different from its predecessor, Real Money, in a number of ways. I quite enjoyed the first one; will I enjoy this one, too? Let’s find out! Most of the latter two thirds of …