Month: October 2024
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Finding great companies for investment – Income statement analysis
In order to start developing your star list of great companies, I want to do a series which gives you the tools you will need to screen and vet companies for your list. To do this, you will rely on analysis of the income statement, the cash flow statement, and the balance sheet. These key statements…
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Buy and hold enhances portfolio returns
In the last post, we showed how just the tax efficiency of low turnover buy and hold strategies can make your portfolio outperform. This occurs even if the pre-tax return is the same between short and long term trading strategies. Now we are going to examine how very low turnover in your portfolio can cause…
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Tax efficiency is critical to investing returns
One big reason why buy and hold works is because it is one of the most tax efficient investing strategies you can have. For many people, taxes are one of their top 3 expense categories throughout their working and investing life, so reducing this expense as much as legally allowed is critical to growing your…
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Predicting long term future stock returns – 2024 Q2 update
In previous posts, I have shown how the equity allocation of investors is outstanding at predicting 10 year annualized future stock market returns. While this information cannot be used to time the markets in the short term, it may be useful for long term planning considerations, such as retirement, deciding on a larger downpayment on a home…