Warren Buffett’s Investing Checklist

From: www.linkedin.com (Brian Stoffel)

Warren Buffett’s Investing Checklist:

“No wise pilot, no matter how great his talent and experience, fails to use his checklist.” – Charlie Munger

🏢 BUSINESS TENETS
1: Is the business understandable?
2: Do you know how the money is made?
3: Does the business have a consistent operating history?
4: Does the company have favorable long-term prospects?
5: Is there a big moat around the business?
6: Is it a business that…

The 10 Best Dividend Stocks

From: www.morningstar.com

These undervalued stocks with reliable dividends are worth considering.

What should investors be looking for when it comes to choosing the best dividend stocks?

At Morningstar, we think that the best dividend stocks aren’t simply the highest-yielding dividend stocks. We suggest that investors look beyond a stock’s yield and instead choose stocks with durable dividends and buy those stocks when they’re undervalued.

“It’s really critical to be selective…

How to Use Short-Term Bonds in Your Portfolio

From: www.morningstar.com

Should you have short-term bonds in your portfolio? Yes. I’d argue that short-term bonds are one of the key asset classes that most investors should own, in addition to cash and large-cap stocks.

In this series on portfolio basics, I’ll explain some of the fundamentals of putting together sound portfolios. I’ll start with some of the most widely used types of investments…

Institutional Investors vs. Retail Investors: What’s the Difference?

From: www.investopedia.com

Institutional vs. Retail Investors: An Overview

Investing attracts different kinds of investors for different reasons. The two major types of investors are the institutional investor and the retail investor.

An institutional investor is a company or organization with employees who invest on behalf of others (typically, other companies and organizations). The manner in which an institutional investor allocates capital that’s to be invested…

Institutional vs. Retail Investors: Differences and FAQs

From: www.indeed.com

Institutional and retail investors have many similarities in their roles. Aside from those commonalities, there are numerous areas of distinction between them. If you’re interested in a career in finance, understanding the differences between institutional and retail investors can help you choose the right investing career for you. In this article, we define institutional and retail investors, examine the key differences between them…

S&P 500 Returns Over The Last 40 Years

From: linkedin.com

11.6% per year over the past 40 years — you’re free to have your own feelings about investing in the stock market, but you can’t have your own facts.

This 40 year period has included recessions, wars, Y2K, 9/11, the tech bubble, the real estate meltdown, political turmoil, etc.

When you stay scared and keep your money uninvested, you miss out on a…

Are Dispersion and Concentration in the Stock Market Too High?

U.S. large cap stocks, as measured by the S&P 500, delivered a solid performance in the first half of 2024. In January, the index eclipsed an all-time high, and in the five months that followed, it reached 31 more. Volatility has also been relatively subdued. In the first six months, there was only one instance when the index rose or fell by more than 2%…

Bonds Take Center Stage

From: Amundi Asset Management

Short-term bonds may dominate cash in the next phase of monetary policy

• With yields on cash currently elevated, we appreciate why cash allocations have swelled.
• However, as the US Federal Reserve considers pivoting its stance, so too should investors.
• Against the interest rate risk inherent in most fixed income securities, investors should consider the reinvestment risk inherent in cash.
• Shifting exposure from cash to short-term bonds…

When Low Risk Means High Risk

From: www.morningstar.com

Investment caution can be dangerous, too.

Treasury Bill Rivals

In total, 169 mutual funds and exchange-traded funds registered in the US officially list a Treasury bill index as their prospectus benchmark. That selection is indefensible. Every investment has a higher expected return than Treasury bills because every investment is riskier. Thus, the test is rigged. (Insert election joke of your choice.)

Those 169 funds are a…

Top 10 Things to Know About Building a Diversified Portfolio

From: www.morningstar.com

Here’s how some key asset classes fare as portfolio diversifiers and what that means for building your portfolio.

Diversification is a core principle of sound investing. A portfolio that includes assets with different performance characteristics often leads to better risk-adjusted returns than one that relies on a single asset class. But building a diversified portfolio can be easier in theory…