Best of the AAII Journal

My favorite articles are listed below. In hand-picking the commentaries for this list, I sought out a mix of articles that covered various aspects of investing strategies and portfolio management.

Beginning Investor

How Much Is Needed to Start Investing?

- by Charles Rotblut, CFA

Commissions, fees and taxes can influence what your first investments should be.
 

BEHAVIORAL FINANCE

Understanding Asset Bubbles and How to React to Them

- An interview with Robert Shiller

Bubbles are based on stories, and the stories always change. Nonetheless, diversification and common sense can help protect you.
 

BONDS

Liquidity: The Liquidity: The Hidden Risk in the Municipal Market

- by Nicholos Venditti

Relatively low liquidity with infrequent trading activity for many muni bonds places an importance on portfolio structure and credit quality.
 

FINANCIAL PLANNING

What Exactly Do Online Investment Advisory Services Offer?

- by Jaclyn McClellan

In contrast with the moniker of “robo-adviser,” online advisory services vary in the features they offer and how they interact with clients.
 

FINANCIAL STATEMENTS ANALYSIS

Using Book Value to Judge a Stock’s Worth

- by Charles Rotblut

The price-to-book-value ratio is a popular valuation measure among value investors, though most combine it with additional indicators.
 

FIRST CUT

High Buyback Yields

- by John Bajkowski

These 25 companies are aggressively repurchasing their stock.
 

MUTUAL FUNDS & EXCHANGE-TRADED FUNDS

The Top Mutual Funds Over Five Years: Health Care’s Vitals Look Good

- by Charles Rotblut, CFA and Jaclyn McClellan

Four health care funds topped the rankings, helping to make the category the best performer over the past five years.
 

PORTFOLIO STRATEGIES

The Importance of Diversification in Retirement Portfolios

- by Craig Israelsen

Diversifying a portfolio among four primary asset classes allows for large withdrawals to be taken throughout retirement.
 

STOCK STRATEGIES

Stock Buybacks: Misunderstood, Misanalyzed and Misdiagnosed

- by Aswath Damodaran

The benefit or harm of a stock buyback is dependent on several factors, including how it is funded and the alternative uses for the cash.
 

TRADING STRATEGIES

A Comprehensive Approach to Covered Call Writing

- by Alan Ellman

Focus first on stock or ETF selection, option selection and position management, instead of on dividend capture and tax avoidance strategies.