Stock Strategies Articles
A New Form of Share Ownership: Issuer-Sponsored Tokens
August 2026 by Charles Rotblut, Peter Duggan
With an IST, the token is the security and is held in a digital wallet.
August 2026 by Charles Rotblut, Peter Duggan
With an IST, the token is the security and is held in a digital wallet.
Discovering Growth Beyond the Headlines
July 2026 by John Bajkowski, Cynthia McLaughlin, Dan Boyle
Two growth investing strategies emphasize sustainable metrics, valuation awareness and avoiding glamour stocks.
July 2026 by John Bajkowski, Cynthia McLaughlin, Dan Boyle
Two growth investing strategies emphasize sustainable metrics, valuation awareness and avoiding glamour stocks.
Choice Stocks From AAII’s Model Portfolios: The Platinum 30
June 2026 by Charles Rotblut
A diversified sample of stocks that grade highly on the compelling factors used in our different strategies.
June 2026 by Charles Rotblut
A diversified sample of stocks that grade highly on the compelling factors used in our different strategies.
Economic Moats: The Engine Behind Long-Term Earnings Power
June 2026 by Brian Haughey
Sustainable value creation requires a competitive advantage that has both magnitude and duration.
June 2026 by Brian Haughey
Sustainable value creation requires a competitive advantage that has both magnitude and duration.
Find a Stock’s Earnings Estimate Revisions
June 2026 by Sam Levine
Why revisions to earnings estimates are important and where you can find revisions data and tools on AAII.com.
June 2026 by Sam Levine
Why revisions to earnings estimates are important and where you can find revisions data and tools on AAII.com.
Information Tech Stocks Delivering Solid ROA and Free Cash Flow Growth
May 2026 by Cynthia McLaughlin
This First Cut lists information technology companies that are likely to generate positive returns on their capital investments and have the resilience to service new debt.
May 2026 by Cynthia McLaughlin
This First Cut lists information technology companies that are likely to generate positive returns on their capital investments and have the resilience to service new debt.
Big Improvements to My Portfolio and the AAII Stock Screens
April 2026 by Charles Rotblut
Visit the AAII Investor Hub to experience the new features of the AAII Stock Screens and My Portfolio.
April 2026 by Charles Rotblut
Visit the AAII Investor Hub to experience the new features of the AAII Stock Screens and My Portfolio.
Defensive Stocks With Low Debt for Volatile Markets
April 2026 by Sam Levine
Companies in defensive sectors often provide goods and services that will remain in demand even when the economy slows.
April 2026 by Sam Levine
Companies in defensive sectors often provide goods and services that will remain in demand even when the economy slows.
Screening on Dividend Yield to Unlock Stocks With High Potential
April 2026 by John Bajkowski
The relative dividend yield serves as a valuation measure that helps indicate whether a company may be trading at a discount compared to its historical range.
April 2026 by John Bajkowski
The relative dividend yield serves as a valuation measure that helps indicate whether a company may be trading at a discount compared to its historical range.
Cash Is King and Free Cash Flow Wears the Crown
March 2026 by Brian Haughey
Free cash flow is not just an accounting exercise but is central to valuation.
March 2026 by Brian Haughey
Free cash flow is not just an accounting exercise but is central to valuation.
How the Components of A+ Grades Help You Analyze Stocks
March 2026 by Charles Rotblut
Combining the criteria behind multiple grades provides more robust analysis than relying on a single factor.
March 2026 by Charles Rotblut
Combining the criteria behind multiple grades provides more robust analysis than relying on a single factor.
How to Buy and Sell Stocks Using AAII Stock Screens
March 2026 by Cynthia McLaughlin
The same criteria used by a screen to find attractive stocks can help you make disciplined decisions about when to sell stocks.
March 2026 by Cynthia McLaughlin
The same criteria used by a screen to find attractive stocks can help you make disciplined decisions about when to sell stocks.
Stocks With Good A+ Investor Grades
March 2026 by John Bajkowski
Companies showing strength across all five factors may warrant closer attention as investors look for opportunities supported by both fundamentals and market momentum.
March 2026 by John Bajkowski
Companies showing strength across all five factors may warrant closer attention as investors look for opportunities supported by both fundamentals and market momentum.
2025 Review of AAII Stock Screens: Wanger’s Zebras Break From the Herd
January 2026 by John Bajkowski, Omar Beirat
Seventy-eight percent of the stock screens AAII tracks posted gains during 2025, with an average gain of 14.7%.
January 2026 by John Bajkowski, Omar Beirat
Seventy-eight percent of the stock screens AAII tracks posted gains during 2025, with an average gain of 14.7%.
Finding Investment Opportunities Amid the Known Unknowns
January 2026 by Charles Rotblut
While each new year brings a new mix of unknowns, there are always opportunities to find attractive investments.
January 2026 by Charles Rotblut
While each new year brings a new mix of unknowns, there are always opportunities to find attractive investments.
What It Takes in 2025: Key Characteristics of AAII’s Top Screens
January 2026 by John Bajkowski, Omar Beirat
A close look at top- and bottom-performing stock screens reveals key traits shared by strategies that have shown success over the long term.
January 2026 by John Bajkowski, Omar Beirat
A close look at top- and bottom-performing stock screens reveals key traits shared by strategies that have shown success over the long term.
Your Guide to the New AAII Investor Hub
January 2026 by Charles Rotblut
AAII’s new Investor Hub brings your portfolios, watchlists and research together in one place.
January 2026 by Charles Rotblut
AAII’s new Investor Hub brings your portfolios, watchlists and research together in one place.
Identifying Quality Dividend Stocks When Yields Are Low
November 2025 by Charles Rotblut, Doug Gerlach
Success in today's dividend investing landscape requires abandoning the outdated practice of simply chasing the highest yields.
November 2025 by Charles Rotblut, Doug Gerlach
Success in today's dividend investing landscape requires abandoning the outdated practice of simply chasing the highest yields.
Ideas From AAII and BetterInvesting for Finding and Analyzing Quality Stocks
September 2025 by John Bajkowski, Doug Gerlach
Combining systematic screening with disciplined stock analysis creates a powerful framework for individual investors.
September 2025 by John Bajkowski, Doug Gerlach
Combining systematic screening with disciplined stock analysis creates a powerful framework for individual investors.
The Strength Behind Secular Growth Investing
September 2025 by Wayne A. Thorp
Unlike cyclical stocks, secular growers can sustain high growth rates for surprisingly long periods.
September 2025 by Wayne A. Thorp
Unlike cyclical stocks, secular growers can sustain high growth rates for surprisingly long periods.
Mastering the Market Sentiment of a Stock With AI Tools
August 2025 by Wayne A. Thorp
LLMs can process thousands of text sources to detect subtle changes in how a company is discussed.
August 2025 by Wayne A. Thorp
LLMs can process thousands of text sources to detect subtle changes in how a company is discussed.
Using Large Language Models for Stock Valuation Analysis
July 2025 by Wayne A. Thorp
Given structured inputs, LLMs can reproduce the logical framework for DCF valuation and generate multiple scenarios.
July 2025 by Wayne A. Thorp
Given structured inputs, LLMs can reproduce the logical framework for DCF valuation and generate multiple scenarios.
AI for Stock Screening: Simplify and Accelerate the Discovery Process
June 2025 by Wayne A. Thorp
With LLMs, creating stock screens tailored to precise investment theses becomes far easier, faster and more intuitive.
June 2025 by Wayne A. Thorp
With LLMs, creating stock screens tailored to precise investment theses becomes far easier, faster and more intuitive.
The Platinum 30: A Curated Selection From AAII’s Model Portfolios
June 2025 by Charles Rotblut
A few stocks grading highly on the criteria used in each of our eight model stock portfolios present a diversified sample.
June 2025 by Charles Rotblut
A few stocks grading highly on the criteria used in each of our eight model stock portfolios present a diversified sample.
AI for Financial Document Analysis: Your Net in a Sea of Information
May 2025 by Wayne A. Thorp
Quickly processing news and reports with AI tools allows your finite attention to focus on interpretation and decision-making.
May 2025 by Wayne A. Thorp
Quickly processing news and reports with AI tools allows your finite attention to focus on interpretation and decision-making.
An Intro to AI-Powered Investing: How Individual Investors Can Leverage LLMs
April 2025 by Wayne A. Thorp
Artificial intelligence can enhance investment research and decision-making, but it should be used carefully.
April 2025 by Wayne A. Thorp
Artificial intelligence can enhance investment research and decision-making, but it should be used carefully.
Dividend Yields Are Higher Now Than in Recent Years
April 2025 by Charles Rotblut
Stocks with yields significantly higher than current medians are alluring, but it’s essential to thoroughly analyze the stock before investing.
April 2025 by Charles Rotblut
Stocks with yields significantly higher than current medians are alluring, but it’s essential to thoroughly analyze the stock before investing.
Key Metrics That Signal Strong Dividend Growth Potential
April 2025 by Charles Rotblut
Focusing on companies with a history of dividend growth and the financial strength to sustain it increases your odds of realizing higher total returns.
April 2025 by Charles Rotblut
Focusing on companies with a history of dividend growth and the financial strength to sustain it increases your odds of realizing higher total returns.
A Fund Manager’s Rules for Selling Stocks
March 2025 by John Deysher
Mastering the art of knowing when to sell can make a big positive difference in your long-term returns.
March 2025 by John Deysher
Mastering the art of knowing when to sell can make a big positive difference in your long-term returns.
Choosing the Right Stock Screen for Your Investing Strategy
March 2025 by John Bajkowski
A well-designed screen can provide you with a preliminary list of stocks that hold promise.
March 2025 by John Bajkowski
A well-designed screen can provide you with a preliminary list of stocks that hold promise.
How Fear and Overconfidence Directly Affect Market Behavior
March 2025 by Tudor Pop
Investor emotions cause asset mispricing, which leads to temporary market inefficiencies.
March 2025 by Tudor Pop
Investor emotions cause asset mispricing, which leads to temporary market inefficiencies.
Beer, Chips and Bull Markets: Game Day Stock Effect
February 2025 by Jenna Brashear
While companies often see a spike in brand awareness and sales after a successful ad, translating that into sustainable stock growth is another story.
February 2025 by Jenna Brashear
While companies often see a spike in brand awareness and sales after a successful ad, translating that into sustainable stock growth is another story.
The Challenges of Discounted Cash Flow and How to Handle Them
February 2025 by Omar Beirat
Discounted cash flow (DCF) models provide a structured framework for valuing investments, but their reliability is often compromised by their dependence on uncertain long-term projections and assumptions about the future.
February 2025 by Omar Beirat
Discounted cash flow (DCF) models provide a structured framework for valuing investments, but their reliability is often compromised by their dependence on uncertain long-term projections and assumptions about the future.
Equity Factors That Stand the Test of Time
December 2024 by Tudor Pop
A study analyzing U.S. equity factors from 1866 to the 2020s finds that factors such as value, momentum and low risk are robust and persistent.
December 2024 by Tudor Pop
A study analyzing U.S. equity factors from 1866 to the 2020s finds that factors such as value, momentum and low risk are robust and persistent.
Improving the Efficiency of Multifactor Stock Strategies
October 2024 by Tudor Pop
Researchers worked on a methodology to limit the economic risks of stock-picking strategies that are based on combining factors.
October 2024 by Tudor Pop
Researchers worked on a methodology to limit the economic risks of stock-picking strategies that are based on combining factors.
Looking to Lakonishok for Latent Gems
October 2024 by John Bajkowski
Screening based on finding out-of-favor companies that are beginning to show signs of awakening.
October 2024 by John Bajkowski
Screening based on finding out-of-favor companies that are beginning to show signs of awakening.
Make the Most of the AAII Stock Screens
October 2024 by Omar Beirat
A few simple steps put the AAII Stock Screens’ daily generated ideas at your fingertips, along with key data points.
October 2024 by Omar Beirat
A few simple steps put the AAII Stock Screens’ daily generated ideas at your fingertips, along with key data points.
Backtests Reveal Strength of Buffett Indicator as a Long-Term Market Predictor
September 2024 by Tudor Pop
A study tested Warren Buffett’s belief that looking at the value of the equity market relative to the gross domestic product (GDP) could be a good predictor of stock market mispricings.
September 2024 by Tudor Pop
A study tested Warren Buffett’s belief that looking at the value of the equity market relative to the gross domestic product (GDP) could be a good predictor of stock market mispricings.
Six Lessons of Investment Loss to Keep You Winning
September 2024 by Andrew Stotz
Stories of investing loss that underscore the importance of preparation, vigilance and learning from others’ experiences.
September 2024 by Andrew Stotz
Stories of investing loss that underscore the importance of preparation, vigilance and learning from others’ experiences.
Clickbait or Cash Cow? The Cost of Following Finfluencers
August 2024 by Omar Beirat
Financial influencers on social media often give poor advice, prioritizing fame and money over genuine financial education.
August 2024 by Omar Beirat
Financial influencers on social media often give poor advice, prioritizing fame and money over genuine financial education.
How Women (and Their Spouses) Can Thrive as Investors
August 2024 by Charles Rotblut, Cynthia McLaughlin, Nancy Tengler
An investment manager discusses including your spouse in financial conversations and a stock strategy that combines dividends with growth at a reasonable price.
August 2024 by Charles Rotblut, Cynthia McLaughlin, Nancy Tengler
An investment manager discusses including your spouse in financial conversations and a stock strategy that combines dividends with growth at a reasonable price.
Institutional Trading Confirms Mispricing in Value and Glamour Stocks
August 2024 by Max Hayes, Tudor Pop
Institutional investors exploit expectation errors in value versus glamour stocks by buying value stocks with strong fundamentals and selling glamour stocks with weak fundamentals.
August 2024 by Max Hayes, Tudor Pop
Institutional investors exploit expectation errors in value versus glamour stocks by buying value stocks with strong fundamentals and selling glamour stocks with weak fundamentals.
Eliminating Low-Quality and Poor Momentum Stocks Helps Sidestep Value Traps
June 2024 by Omar Beirat
Investors can potentially boost returns and reduce risk by steering clear of value traps, particularly by screening out low-quality stocks.
June 2024 by Omar Beirat
Investors can potentially boost returns and reduce risk by steering clear of value traps, particularly by screening out low-quality stocks.
How to Boost Returns by Incorporating Momentum
June 2024 by Charles Rotblut
Portfolios of companies with strong price momentum have realized higher returns than the portfolios of companies with weak momentum.
June 2024 by Charles Rotblut
Portfolios of companies with strong price momentum have realized higher returns than the portfolios of companies with weak momentum.
AAII Members Seek Dividend-Paying Stocks With Growth Prospects
May 2024 by Charles Rotblut, Anine Sus, Meagan Kaloostian
Growth, inexpensive valuation and an appealing dividend were cited by survey respondents as desirable traits in stocks.
May 2024 by Charles Rotblut, Anine Sus, Meagan Kaloostian
Growth, inexpensive valuation and an appealing dividend were cited by survey respondents as desirable traits in stocks.
What Vanguard Looks for in Innovative Global Growth Stocks
May 2024 by Charles Rotblut, Cynthia McLaughlin, Michael Masdea
Using a bottom-up approach to pinpoint companies set to be much bigger in five to 10 years.
May 2024 by Charles Rotblut, Cynthia McLaughlin, Michael Masdea
Using a bottom-up approach to pinpoint companies set to be much bigger in five to 10 years.
Five Key Markers Pointing to Successful Stock Investing
April 2024 by Charles Rotblut
Certain factors put institutional investors at a disadvantage to a disciplined individual investor who follows a consistent, well-defined approach to investing.
April 2024 by Charles Rotblut
Certain factors put institutional investors at a disadvantage to a disciplined individual investor who follows a consistent, well-defined approach to investing.
The Eight Metrics AAII Uses to Identify Quality Stocks
March 2024 by Wayne A. Thorp
AAII’s A+ Quality Grade encompasses a comprehensive set of financial indicators to identify high-quality stocks.
March 2024 by Wayne A. Thorp
AAII’s A+ Quality Grade encompasses a comprehensive set of financial indicators to identify high-quality stocks.
When to Say Goodbye to a Stock: Sell Rules for Savvy Investors
March 2024 by Charles Rotblut
A well-defined approach to selling helps separate the truly successful investors from all others.
March 2024 by Charles Rotblut
A well-defined approach to selling helps separate the truly successful investors from all others.
Forecasting Returns Through Changes in the Language of News
February 2024 by Eunice Kim
Quantifying the novelty of news with an entropy measure helps to predict stock market trends and macroeconomic outcomes for the subsequent year.
February 2024 by Eunice Kim
Quantifying the novelty of news with an entropy measure helps to predict stock market trends and macroeconomic outcomes for the subsequent year.
The Pros and Cons of Investing in BDCs to Access Private Equity
November 2023 by John Deysher
Business development companies offer the opportunity to invest in some attractive areas; however, there are significant risks.
November 2023 by John Deysher
Business development companies offer the opportunity to invest in some attractive areas; however, there are significant risks.
Valuing a Stock Using Dividends
November 2023 by Brian Haughey
The dividend discount model offers an intuitive method to calculate the intrinsic value of a dividend-paying stock.
November 2023 by Brian Haughey
The dividend discount model offers an intuitive method to calculate the intrinsic value of a dividend-paying stock.
Negative Earnings Prompts Turnover in Model Shadow Stock Portfolio
October 2023 by John Bajkowski
The three stocks removed for negative earnings are replaced by two additions.
October 2023 by John Bajkowski
The three stocks removed for negative earnings are replaced by two additions.
Professional Investors Reaffirm the Relevance of Equity Factors
October 2023 by Grace Malone
An MSCI survey asked global institutional investors and wealth managers about their current thinking in regard to equity factors and how the role of factors is evolving in their asset allocation decisions.
October 2023 by Grace Malone
An MSCI survey asked global institutional investors and wealth managers about their current thinking in regard to equity factors and how the role of factors is evolving in their asset allocation decisions.
Small-Cap Value Is the Best Choice for Equity Diversification
October 2023 by Paul Merriman
Any long-term portfolio anchored by the S&P 500 can benefit from the addition of small-cap value stocks.
October 2023 by Paul Merriman
Any long-term portfolio anchored by the S&P 500 can benefit from the addition of small-cap value stocks.
Tweaking Benjamin Graham's Enterprising Investor Screen
October 2023 by John Bajkowski
The adjusted Graham enterprising screen averaged 24 passing companies compared to seven for the current screen.
October 2023 by John Bajkowski
The adjusted Graham enterprising screen averaged 24 passing companies compared to seven for the current screen.
Which Quality Attributes Best Signal Outperformance?
October 2023 by Andrew Gomes
Researchers examined the attributes of the quality factor to see which showed the most reliability as a source of return premium.
October 2023 by Andrew Gomes
Researchers examined the attributes of the quality factor to see which showed the most reliability as a source of return premium.
Detecting Earnings Manipulation With the M-Score
September 2023 by Messod D. Beneish
The eight variables in the M-Score model are designed to capture bloating or cosmetic changes made to a company’s financial statement numbers.
September 2023 by Messod D. Beneish
The eight variables in the M-Score model are designed to capture bloating or cosmetic changes made to a company’s financial statement numbers.
Filling Your Coffee Can Portfolio to Stash Away
June 2023 by Brian Haughey
Buying great companies and holding them forever has several advantages over other strategies, including pure indexing.
June 2023 by Brian Haughey
Buying great companies and holding them forever has several advantages over other strategies, including pure indexing.
Has the January Effect Widened?
May 2023 by Jamie Fan
A study hypothesized that the January effect may have expanded to include the second half of December and the first half of February.
May 2023 by Jamie Fan
A study hypothesized that the January effect may have expanded to include the second half of December and the first half of February.
How Shadow Stock Metrics Have Evolved Over Time
May 2023 by Charles Rotblut
AAII's Model Shadow Stock Portfolio is based on data showing an advantage to investing in small and deep-value stocks.
May 2023 by Charles Rotblut
AAII's Model Shadow Stock Portfolio is based on data showing an advantage to investing in small and deep-value stocks.
Lift off With Rising Dividend-Paying Stocks
May 2023 by Jack Gilleland
Rising dividend-paying stocks have historically provided higher cumulative returns with lower levels of volatility than non-dividend-paying stocks over long-term holding periods.
May 2023 by Jack Gilleland
Rising dividend-paying stocks have historically provided higher cumulative returns with lower levels of volatility than non-dividend-paying stocks over long-term holding periods.
What Helps and Doesn't Help Find Top-Performing Stocks
May 2023 by Martin Fridson
What drives stocks to be the number-one stock in the S&P 500 in terms of one-year returns is surprises.
May 2023 by Martin Fridson
What drives stocks to be the number-one stock in the S&P 500 in terms of one-year returns is surprises.
Developing Sell Rules for Stocks Based on Your Buy Criteria
March 2023 by Matt Markowski
A clearly defined process for making sell decisions prevents emotions from taking over. One method is to base your rules on the criteria used for considering a stock.
March 2023 by Matt Markowski
A clearly defined process for making sell decisions prevents emotions from taking over. One method is to base your rules on the criteria used for considering a stock.
Tracking Dividends Versus Buybacks
March 2023 by Derek J. Hageman
Recent tracking of S&P 500 stocks shows that companies are clearly spending more on buybacks than dividends.
March 2023 by Derek J. Hageman
Recent tracking of S&P 500 stocks shows that companies are clearly spending more on buybacks than dividends.
Key Ingredients of a Blue-Chip REIT
November 2022 by Brad Thomas
High-quality REITs can deliver consistent, rising growth in funds from operations, dividends and asset value over reasonably long periods of time.
November 2022 by Brad Thomas
High-quality REITs can deliver consistent, rising growth in funds from operations, dividends and asset value over reasonably long periods of time.
Pros and Cons of Two Dividend Investing Strategies
November 2022 by Derek J. Hageman
Which are the better dividend-paying stocks—stocks with a lower initial yield but with a high dividend growth rate, or stocks with a low dividend growth rate but with a higher initial yield?
November 2022 by Derek J. Hageman
Which are the better dividend-paying stocks—stocks with a lower initial yield but with a high dividend growth rate, or stocks with a low dividend growth rate but with a higher initial yield?
Uncovering Consistent & Sustainable Growth With the Revised Growth Grade
October 2022 by Wayne A. Thorp
Through testing, we found evidence that we could build a better grade to help members identify promising growth stocks and the key components that make them so.
October 2022 by Wayne A. Thorp
Through testing, we found evidence that we could build a better grade to help members identify promising growth stocks and the key components that make them so.
Segmenting Growth Stocks With the G-Score
September 2022 by Wayne A. Thorp
An eight-point scale based on fundamental factors helps to identify attractive growth stocks and avoid weak growth companies.
September 2022 by Wayne A. Thorp
An eight-point scale based on fundamental factors helps to identify attractive growth stocks and avoid weak growth companies.
Companies Sacrifice Profits to Build Customer Base
August 2022 by Sean Murphy
Over the last few decades, so-called “mega-companies” with negative earnings have become increasingly popular.
August 2022 by Sean Murphy
Over the last few decades, so-called “mega-companies” with negative earnings have become increasingly popular.
Six Ways to Lessen the Pain of Contrarian Investing
August 2022 by John Deysher
The ability to be comfortable with being uncomfortable can help you keep your emotional and mental health in check.
August 2022 by John Deysher
The ability to be comfortable with being uncomfortable can help you keep your emotional and mental health in check.
Reddit, Robinhood and Lessons From the Meme Stock Craze
April 2022 by Spencer Jakab
The technology that made it possible for people to actively trade for free and send a stock’s price up rapidly also works to your advantage as an investor and a saver.
April 2022 by Spencer Jakab
The technology that made it possible for people to actively trade for free and send a stock’s price up rapidly also works to your advantage as an investor and a saver.
What Traits Do Individual Investors Consider When Buying Stocks?
April 2022 by Charles Rotblut, Jean Henrich, Dylan Dease, Anine Sus
To gain insight into the stock approaches that AAII members use, we surveyed them on how they find ideas, the characteristics they focus on and their preferred data sources.
April 2022 by Charles Rotblut, Jean Henrich, Dylan Dease, Anine Sus
To gain insight into the stock approaches that AAII members use, we surveyed them on how they find ideas, the characteristics they focus on and their preferred data sources.
How to Vote Your Proxy Ballot
January 2022 by John Deysher
The proxy gives you as a shareholder your one chance to voice an opinion on how a company is being run.
January 2022 by John Deysher
The proxy gives you as a shareholder your one chance to voice an opinion on how a company is being run.
Warren Buffett and the Evolution of Value Investing
November 2021 by Charles Rotblut, Robert Hagstrom
Buffett realized that value investing had nothing to do with accounting factors. It was all about the cash—the return on equity.
November 2021 by Charles Rotblut, Robert Hagstrom
Buffett realized that value investing had nothing to do with accounting factors. It was all about the cash—the return on equity.
Differentiating Between High Yield and High Dividend Growth Strategies
October 2021 by Derek J. Hageman
Which are the better dividend-paying stocks: stocks with a lower initial yield but with a high dividend growth rate, or stocks with a low dividend growth rate but with a higher initial yield?
October 2021 by Derek J. Hageman
Which are the better dividend-paying stocks: stocks with a lower initial yield but with a high dividend growth rate, or stocks with a low dividend growth rate but with a higher initial yield?
Online Exclusive: Defensive Versus Cyclical Stocks
October 2021 by Matthew Bajkowski
The profitability of cyclical stocks is tied to the status of the economy, while defensive stocks tend not to lose their value during downturns.
October 2021 by Matthew Bajkowski
The profitability of cyclical stocks is tied to the status of the economy, while defensive stocks tend not to lose their value during downturns.
Incorporating the Price-Earnings Ratio Into Your Screening and Analysis
September 2021 by Matthew Bajkowski
The price-earnings ratio is widely used as a valuation metric because of its simplicity. It embodies the market’s expectation of future company performance and relates it to actual, recent company performance.
September 2021 by Matthew Bajkowski
The price-earnings ratio is widely used as a valuation metric because of its simplicity. It embodies the market’s expectation of future company performance and relates it to actual, recent company performance.
Guidelines for Selecting Stocks for Your Portfolio
August 2021 by Charles Rotblut
The choice of a stock—and even whether to hold individual stocks instead of mutual funds or ETFs—should be reflective of each investor’s investment management preferences.
August 2021 by Charles Rotblut
The choice of a stock—and even whether to hold individual stocks instead of mutual funds or ETFs—should be reflective of each investor’s investment management preferences.
Guns, Drugs & Warfare: Thematic Investing for Vice Stocks
August 2021 by Derek J. Hageman
The top alcohol, gaming (gambling), tobacco, cannabis and defense stocks that are passing a growth screen.
August 2021 by Derek J. Hageman
The top alcohol, gaming (gambling), tobacco, cannabis and defense stocks that are passing a growth screen.
What Are Factors? A Look Behind the Curtain
August 2021 by Jack Vogel
There are about five to six factors that academics generally agree can explain most of the cross section of stock returns.
August 2021 by Jack Vogel
There are about five to six factors that academics generally agree can explain most of the cross section of stock returns.
Mini-Tender Offers May Not Be in Investors’ Best Interest
July 2021 by Charles Rotblut
Mini-tender offers do not fall under the same disclosure rules as regular tender offers from companies that want to buy your shares.
July 2021 by Charles Rotblut
Mini-tender offers do not fall under the same disclosure rules as regular tender offers from companies that want to buy your shares.
Separating Winners From Losers: Piotroski's Low Price-to-Book Stocks
July 2021 by Derek J. Hageman
The Piotroski scoring system has grown into a popular approach to identify value stocks with solid and improving financials.
July 2021 by Derek J. Hageman
The Piotroski scoring system has grown into a popular approach to identify value stocks with solid and improving financials.
Stock MVPs Passing the Most Screens
July 2021 by Derek J. Hageman
This month’s First Cut Stocks lists those companies passing the greatest number of quantitative screening strategies tracked by AAII.
July 2021 by Derek J. Hageman
This month’s First Cut Stocks lists those companies passing the greatest number of quantitative screening strategies tracked by AAII.
Strong Estimated Growth Fails to Lead to Strong Returns
July 2021 by Matthew Bajkowski
Results of backtesting the A+ Growth Grade with a projected earnings growth rate component.
July 2021 by Matthew Bajkowski
Results of backtesting the A+ Growth Grade with a projected earnings growth rate component.
Check a Firm’s Health in Its Annual Report
June 2021 by John Deysher
Knowing what to look for in the annual report and shareholder letter will help you stack the odds in your favor.
June 2021 by John Deysher
Knowing what to look for in the annual report and shareholder letter will help you stack the odds in your favor.
A Slowing Reversion to the Mean for Value Stocks?
March 2021 by Matthew Bajkowski
The prolonged underperformance of value stocks relative to the market may be explained as a slowing of long-term market profitability trends, according to a portfolio manager and analyst with Invesco.
March 2021 by Matthew Bajkowski
The prolonged underperformance of value stocks relative to the market may be explained as a slowing of long-term market profitability trends, according to a portfolio manager and analyst with Invesco.
Viewing the Sector Exposure of Dividend Stocks Through the Aristocrats
March 2021 by Brian Haughey
One factor that dividend investors often overlook is asset allocation, or the type of firms being invested in.
March 2021 by Brian Haughey
One factor that dividend investors often overlook is asset allocation, or the type of firms being invested in.
AAII's Quality Grade Undergoes Expansion: Looking Behind the Curtain
February 2021 by Wayne A. Thorp
Based on research into various components that reflect a company’s “quality,” we tweaked the quality grade for stocks.
February 2021 by Wayne A. Thorp
Based on research into various components that reflect a company’s “quality,” we tweaked the quality grade for stocks.
Recent Stock Splits and Stock Dividends
October 2020 by John Bajkowski
This month’s Stocks First Cut seeks out exchange-listed stocks that have undergone a positive stock split or stock dividend this year.
October 2020 by John Bajkowski
This month’s Stocks First Cut seeks out exchange-listed stocks that have undergone a positive stock split or stock dividend this year.
Are Virtual-Only Annual Meetings Virtuous?
August 2020 by John Deysher
A look at the advantages and disadvantages of virtual shareholder meetings through the eyes of a portfolio manager. Plus, a scoring system you can use to measure whether a firm is promoting shareholder interests.
August 2020 by John Deysher
A look at the advantages and disadvantages of virtual shareholder meetings through the eyes of a portfolio manager. Plus, a scoring system you can use to measure whether a firm is promoting shareholder interests.
Dividend Growth Helps Portfolios Combat Inflation
July 2020 by Aaron Brask
Investors, particularly retirees, can leverage the benefits of dividends to combat the deleterious effects of inflation and market volatility.
July 2020 by Aaron Brask
Investors, particularly retirees, can leverage the benefits of dividends to combat the deleterious effects of inflation and market volatility.
Quality Matters: Knowing What NOT to Own
July 2020 by Wayne A. Thorp
Identifying low-quality stocks to avoid is one way to boost your chances for investment success.
July 2020 by Wayne A. Thorp
Identifying low-quality stocks to avoid is one way to boost your chances for investment success.
The Impact of Price Stability on Equity Market Valuation
July 2020 by Stephen E. Wilcox
With the Fed targeting an inflation rate of 2%, equity market valuation ratios such as the CAPE ratio may be expected to be higher than what they have been in the distant past. Inflation targeting supports the Fed’s mandate of price stability and is a positive for equity investors.
July 2020 by Stephen E. Wilcox
With the Fed targeting an inflation rate of 2%, equity market valuation ratios such as the CAPE ratio may be expected to be higher than what they have been in the distant past. Inflation targeting supports the Fed’s mandate of price stability and is a positive for equity investors.
Is a Rights Offering the Right Stuff?
June 2020 by John Deysher
In the wake of the coronavirus pandemic, companies may turn to equity capital to avoid becoming too leveraged. A rights offering is one of the fairest ways to proceed.
June 2020 by John Deysher
In the wake of the coronavirus pandemic, companies may turn to equity capital to avoid becoming too leveraged. A rights offering is one of the fairest ways to proceed.
Myths and Truths About Quality
November 2019 by Rupal Bhansali
To understand quality holistically and correctly, you need variant perceptions and unconventional frameworks that go beyond the typical clichés and checklists.
November 2019 by Rupal Bhansali
To understand quality holistically and correctly, you need variant perceptions and unconventional frameworks that go beyond the typical clichés and checklists.
Ignore What CEOs Are Saying … Watch What They're Doing
October 2019 by James Paulsen
Three important actions by corporate heads suggest that business confidence is solid. While they won’t cure all that ails the earnings cycle, they are optimistic signposts that bolster the prospects for positive financial market trends.
October 2019 by James Paulsen
Three important actions by corporate heads suggest that business confidence is solid. While they won’t cure all that ails the earnings cycle, they are optimistic signposts that bolster the prospects for positive financial market trends.
Why Contrarian Investors Should Treat Falling Knives With Skepticism
July 2019 by John Stepek
There are two key traits that every contrarian needs: skepticism and patience. Here’s what to consider before you rush to invest in companies that have fallen from grace.
July 2019 by John Stepek
There are two key traits that every contrarian needs: skepticism and patience. Here’s what to consider before you rush to invest in companies that have fallen from grace.
Economic Moats Matter Less Than a Stock's Valuation
May 2019 by Brian Nelson
The economic moat concept alone is less important than an evaluation of how the market has priced a company’s future economic value stream.
May 2019 by Brian Nelson
The economic moat concept alone is less important than an evaluation of how the market has priced a company’s future economic value stream.
Value Investing's Differing Short- and Long-Term Performance Record
May 2019 by Charles Rotblut
May 2019 by Charles Rotblut
Does value investing still work? An in-depth look at the numbers shows that the answer is more nuanced than you might think.
Tricking Investors With Merger-Related Accounting Shenanigans
June 2018 by Howard Schilit
Acquisitions give managers opportunities to artificially boost performance or hide past mistakes. Learn how to spot these shenanigans.
June 2018 by Howard Schilit
Acquisitions give managers opportunities to artificially boost performance or hide past mistakes. Learn how to spot these shenanigans.
The Traits Successful Business Visionaries Share
April 2018 by Lloyd Shefsky
There are five primary types of vision business leaders have. What they are and how to monitor CEOs’ progress toward their visions.
April 2018 by Lloyd Shefsky
There are five primary types of vision business leaders have. What they are and how to monitor CEOs’ progress toward their visions.
“Sell in May” Has Weakened as a Strategy
March 2018 by AAII Staff
The strategy of holding stocks between November and April and avoiding them between May and October was first discussed in an academic journal in 2002. Questions have arisen as to whether the attention given to the strategy has hurt its returns.
March 2018 by AAII Staff
The strategy of holding stocks between November and April and avoiding them between May and October was first discussed in an academic journal in 2002. Questions have arisen as to whether the attention given to the strategy has hurt its returns.
The Essence of the Benjamin Graham Approach
January 2018 by Ben Branch
A cut-to-the chase synopsis of Graham’s rules, which were based on buying stocks trading with a margin of safety.
January 2018 by Ben Branch
A cut-to-the chase synopsis of Graham’s rules, which were based on buying stocks trading with a margin of safety.
Stock Market Retreats and Recoveries
October 2017 by Sam Stovall
Only six months, on average, have separated the end of one decline and the start of the next one, but recoveries have been quick.
October 2017 by Sam Stovall
Only six months, on average, have separated the end of one decline and the start of the next one, but recoveries have been quick.
Three Value-Investing Benchmarks
July 2017 by Gary Smith
The valuation models espoused by John Burr Williams, Robert Shiller and John Bogle can be used to assess the market’s likelihood of gains.
July 2017 by Gary Smith
The valuation models espoused by John Burr Williams, Robert Shiller and John Bogle can be used to assess the market’s likelihood of gains.
A Dividend Approach to Judging the Value of Stocks
May 2017 by John Bajkowski, Jaclyn N. McClellan
A stock’s valuation can be judged by comparing its current dividend yield to the historical range and analyzing the payout ratios.
May 2017 by John Bajkowski, Jaclyn N. McClellan
A stock’s valuation can be judged by comparing its current dividend yield to the historical range and analyzing the payout ratios.
The Advantages of Quantitative Approaches to Stock Selection
May 2017 by Charles Rotblut, Sudhir Nanda
Quantitative strategies allow thousands of stocks to be ranked by specific characteristics, such as value or momentum.
May 2017 by Charles Rotblut, Sudhir Nanda
Quantitative strategies allow thousands of stocks to be ranked by specific characteristics, such as value or momentum.
What Is Your Investing Edge?
May 2017 by John Huber
Many investors focus on trying to gain an information edge, but the bigger advantage comes from taking a longer-term view.
May 2017 by John Huber
Many investors focus on trying to gain an information edge, but the bigger advantage comes from taking a longer-term view.
Deep Value Investing Has Not Gone Out of Style
January 2017 by Robert R. Johnson, Stephen M. Horan, Thomas R. Robinson
An updated version of Benjamin Graham’s Deep Value screen identified nine stocks in 2012; the portfolio has outperformed since then with no losing positions.
January 2017 by Robert R. Johnson, Stephen M. Horan, Thomas R. Robinson
An updated version of Benjamin Graham’s Deep Value screen identified nine stocks in 2012; the portfolio has outperformed since then with no losing positions.
Focus on the Value of a Business, Not the Stock's Valuation
October 2016 by Charles Rotblut, Rupal Bhansali
Valuation ratios do not tell you what you are getting for your money, whereas intrinsic value allows you to assess the stock’s potential.
October 2016 by Charles Rotblut, Rupal Bhansali
Valuation ratios do not tell you what you are getting for your money, whereas intrinsic value allows you to assess the stock’s potential.
Why Value Beats Growth: A Brief Explanation
September 2016 by Peter Berezin
Value stocks perform better because the markets are not perfectly efficient and investors overpay for growth.
September 2016 by Peter Berezin
Value stocks perform better because the markets are not perfectly efficient and investors overpay for growth.
Analyzing a Stock by Its Dividend and Shareholder Yield
August 2016 by Charles Rotblut
Both dividends and stock buybacks can be used to assess a stock’s attractiveness; higher relative shareholder yields have historically led to better stock returns.
August 2016 by Charles Rotblut
Both dividends and stock buybacks can be used to assess a stock’s attractiveness; higher relative shareholder yields have historically led to better stock returns.
Going From Stock Screen to a Real Portfolio
July 2016 by John P. Reese
When investing based on a screen, have preset rules regarding diversification, choosing stocks, selling and tax management.
July 2016 by John P. Reese
When investing based on a screen, have preset rules regarding diversification, choosing stocks, selling and tax management.
Using the Z-Score to Assess the Risk of Bankruptcy
July 2016 by Charles Rotblut, Edward Altman
The Z-Score predicts the likelihood of bankruptcy or financial distress. A discussion with its creator reveals how to use the model and new variations on it.
July 2016 by Charles Rotblut, Edward Altman
The Z-Score predicts the likelihood of bankruptcy or financial distress. A discussion with its creator reveals how to use the model and new variations on it.
Micro-Cap Stocks Are Less Widely Followed, Offer Benefits
June 2016 by Charles Rotblut, Michael Corbett
Micro-cap stocks may require investors to do more of their own research, but part of the payoff is reduced portfolio volatility.
June 2016 by Charles Rotblut, Michael Corbett
Micro-cap stocks may require investors to do more of their own research, but part of the payoff is reduced portfolio volatility.
Uses and Misuses of Ben Graham–Style Investing
June 2016 by John Mihaljevic
Buying deep value companies requires being able to cope with some discomfort; those able to can be rewarded for doing so.
June 2016 by John Mihaljevic
Buying deep value companies requires being able to cope with some discomfort; those able to can be rewarded for doing so.
Common Mistakes Made When Investing in Quality Companies
May 2016 by Lawrence A. Cunningham
Investors must be careful to avoid letting decisions be influenced by macroeconomic factors, overconfidence and emotional attachment.
May 2016 by Lawrence A. Cunningham
Investors must be careful to avoid letting decisions be influenced by macroeconomic factors, overconfidence and emotional attachment.
Momentum’s Role as a Driver of Stock Prices
May 2016 by Charles Rotblut
Stocks with high levels of relative strength tend to continue outperforming, but can lead to greater portfolio turnover.
May 2016 by Charles Rotblut
Stocks with high levels of relative strength tend to continue outperforming, but can lead to greater portfolio turnover.
Methods for Valuing a Stock Based on Profitability and Growth
April 2016 by Thomas Howard
Employing different valuation methods allows you to establish a range for determining whether a stock is cheap or expensive.
April 2016 by Thomas Howard
Employing different valuation methods allows you to establish a range for determining whether a stock is cheap or expensive.
Strategies for Selling Stocks, Including Guidelines From Experts
April 2016 by Charles Rotblut
Disciplined rules for selling can consider a deterioration in the company’s prospects, preset targets and stop limits.
April 2016 by Charles Rotblut
Disciplined rules for selling can consider a deterioration in the company’s prospects, preset targets and stop limits.
Being Wrong and Still Making Money
January 2016 by Lee Freeman-Shor
An analysis of nearly 31,000 trades found that successful professional investors all adopted the same habits of execution.
January 2016 by Lee Freeman-Shor
An analysis of nearly 31,000 trades found that successful professional investors all adopted the same habits of execution.
A Behind-the-Scenes Look at How Trades Are Executed
November 2015 by Charles Rotblut, John Ramsay
The stock market has grown more complex with exchanges, alternative trading platforms and internalizers all competing for orders.
November 2015 by Charles Rotblut, John Ramsay
The stock market has grown more complex with exchanges, alternative trading platforms and internalizers all competing for orders.
Is the Small-Cap Stock Premium Disappearing?
November 2015 by Gregg S. Fisher
The premium realized by small-cap stocks has shrunk, but there are reasons why investors should not abandon them.
November 2015 by Gregg S. Fisher
The premium realized by small-cap stocks has shrunk, but there are reasons why investors should not abandon them.
Finding Bargains Among Stocks With Falling Stock Prices
October 2015 by Luke Wiley
Underperforming stocks may seem unappealing, but the price weakness can turn them into bargains with upside potential.
October 2015 by Luke Wiley
Underperforming stocks may seem unappealing, but the price weakness can turn them into bargains with upside potential.
Using Rational Value to Judge a Stock's Worth
October 2015 by Ellis Traub
The range of valuations a stock has traded at over the past several years can be used to determine if the current price is high or low.
October 2015 by Ellis Traub
The range of valuations a stock has traded at over the past several years can be used to determine if the current price is high or low.
Oakmark Funds’ Long-Term Approach to Stock Investing
September 2015 by Charles Rotblut, William C. Nygren
The Oakmark process focuses on good businesses trading at good prices with capable management teams.
September 2015 by Charles Rotblut, William C. Nygren
The Oakmark process focuses on good businesses trading at good prices with capable management teams.
Mistakes Must Serve a Purpose: Some Early Lessons
June 2015 by Francois Sicart
The founder and chairman of Tocqueville Asset Management shares the lessons learned from some of his biggest investing blunders.
June 2015 by Francois Sicart
The founder and chairman of Tocqueville Asset Management shares the lessons learned from some of his biggest investing blunders.
The Power of Compounded Growth and Reinvested Dividends
June 2015 by Lowell G. Miller
A high starting dividend, sustainable dividend growth and dividend reinvestment can result in a large yield on original investment (YOI).
June 2015 by Lowell G. Miller
A high starting dividend, sustainable dividend growth and dividend reinvestment can result in a large yield on original investment (YOI).
Dividends Are Still Valuable
May 2015 by John Buckingham
Not only have dividend-paying stocks realized higher long-term returns, they also tend to rise prior to and after an interest rate increase.
May 2015 by John Buckingham
Not only have dividend-paying stocks realized higher long-term returns, they also tend to rise prior to and after an interest rate increase.
How to Analyze Financial Companies
May 2015 by Charles Rotblut, Gabriel Solomon
The manager of the T. Rowe Price Financial Services fund explains how the analysis of banks, insurance companies and investment banking firms differs from companies in other sectors.
May 2015 by Charles Rotblut, Gabriel Solomon
The manager of the T. Rowe Price Financial Services fund explains how the analysis of banks, insurance companies and investment banking firms differs from companies in other sectors.
Simple Methods to Improve the Piotroski F-Score
May 2015 by Wesley R. Gray
Altering the profitability variables, adjusting for net equity issuance and seeking operational momentum can improve this value strategy.
May 2015 by Wesley R. Gray
Altering the profitability variables, adjusting for net equity issuance and seeking operational momentum can improve this value strategy.
Follow the Fed, but Be Smart About It
April 2015 by Gerald R. Jensen, Robert R. Johnson, Luis Garcia-Feijoo
Small-cap stocks thrive during periods of expansive monetary policy, while returns for large- and small-cap stocks are lower during restrictive periods.
April 2015 by Gerald R. Jensen, Robert R. Johnson, Luis Garcia-Feijoo
Small-cap stocks thrive during periods of expansive monetary policy, while returns for large- and small-cap stocks are lower during restrictive periods.
Stock Buybacks: Misunderstood, Misanalyzed and Misdiagnosed
March 2015 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.
March 2015 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.
Corporate Reinvention and the Creation (or Destruction) of Value
January 2015 by Lloyd Shefsky
A major setback can occur with change in leadership, but in some cases it can be corrected with a return to the leader’s original vision.
January 2015 by Lloyd Shefsky
A major setback can occur with change in leadership, but in some cases it can be corrected with a return to the leader’s original vision.
A Strategy Millennial Investors Can Use to Beat the Market
November 2014 by Patrick O'Shaughnessy
Millennial investors can beat the market by creating portfolios that are different than the markets using five criteria.
November 2014 by Patrick O'Shaughnessy
Millennial investors can beat the market by creating portfolios that are different than the markets using five criteria.
Investment Wisdom From Wall Street’s Legends
November 2014 by Frederik Vanhaverbeke
Successful investors seek out undervalued stocks, and often ones that have negative sentiment, reflect special situations or are covered by few analysts.
November 2014 by Frederik Vanhaverbeke
Successful investors seek out undervalued stocks, and often ones that have negative sentiment, reflect special situations or are covered by few analysts.
Weight by Fundamentals, Not by Price
October 2014 by Charles Rotblut, Robert Arnott
Weighting stocks in a portfolio based on their fundamentals prevents the systematic overweighting of the overvalued and underweighting of the undervalued.
October 2014 by Charles Rotblut, Robert Arnott
Weighting stocks in a portfolio based on their fundamentals prevents the systematic overweighting of the overvalued and underweighting of the undervalued.
How I Analyze Net-Nets: Stocks Trading at Deep Discounts
June 2014 by Jeroen Bos
Stocks hitting 52-week lows of companies with strong balance sheets and past profitability can offer big upside returns.
June 2014 by Jeroen Bos
Stocks hitting 52-week lows of companies with strong balance sheets and past profitability can offer big upside returns.
Crowdfund Investing: An Exciting Alternative for Individual Investors
April 2014 by Louis C. Gerken, Thomas C. Gray
The keys to analyzing crowdfunded platforms and investments.
April 2014 by Louis C. Gerken, Thomas C. Gray
The keys to analyzing crowdfunded platforms and investments.
Selecting a Valuation Method to Determine a Stock's Worth
April 2014 by Robert R. Johnson, Stephen M. Horan, Thomas R. Robinson
Guidance on when it makes sense to compare a stock’s price to fundamental factors or other companies and when a stock’s absolute value should be calculated instead.
April 2014 by Robert R. Johnson, Stephen M. Horan, Thomas R. Robinson
Guidance on when it makes sense to compare a stock’s price to fundamental factors or other companies and when a stock’s absolute value should be calculated instead.
Exploiting the Relative Outperformance of Small-Cap Stocks
January 2014 by John Davenport, Fred Meissner
Small-cap stocks outperform large-cap stocks during periods of economic expansion and can deliver excess returns when a sector rotation strategy is used.
January 2014 by John Davenport, Fred Meissner
Small-cap stocks outperform large-cap stocks during periods of economic expansion and can deliver excess returns when a sector rotation strategy is used.
“What Works”: Key New Findings on Stock Selection
October 2013 by James O'Shaughnessy
Better and more consistent returns are realized when several factors, such as valuation, financial strength and earnings quality, are used.
October 2013 by James O'Shaughnessy
Better and more consistent returns are realized when several factors, such as valuation, financial strength and earnings quality, are used.
Investing’s Odd Couple: Value and Momentum
July 2013 by Kevin Truitt
Combining both value and momentum characteristics can improve portfolio returns and reduce volatility.
July 2013 by Kevin Truitt
Combining both value and momentum characteristics can improve portfolio returns and reduce volatility.
The Art of Value Investing
July 2013 by John Heins, Whitney Tilson
A compilation of renown value investors sharing their insights on investing in turnarounds, deciding when to sell and avoiding overconfidence.
July 2013 by John Heins, Whitney Tilson
A compilation of renown value investors sharing their insights on investing in turnarounds, deciding when to sell and avoiding overconfidence.
Using Seasonal and Cyclical Stock Market Patterns
June 2013 by Jeffrey Hirsch
Presidential terms, the calendar month and a basket of January indicators give insight into market direction.
June 2013 by Jeffrey Hirsch
Presidential terms, the calendar month and a basket of January indicators give insight into market direction.
Valuations, Inflation and Real Returns
June 2013 by Charles Rotblut, Robert Shiller
The Yale economics professor explains why he looks at 10 years of earnings and the importance of factoring in inflation when valuing assets.
June 2013 by Charles Rotblut, Robert Shiller
The Yale economics professor explains why he looks at 10 years of earnings and the importance of factoring in inflation when valuing assets.
Insights on Warren Buffett From His Friend and Editor
May 2013 by Charles Rotblut, Carol Loomis
The former editor of Buffett’s annual shareholder letter spoke to us about his investing and management process.
May 2013 by Charles Rotblut, Carol Loomis
The former editor of Buffett’s annual shareholder letter spoke to us about his investing and management process.
The Liquidity Style: Finding Bargains by Seeking Less Popular Stocks
April 2013 by Roger Ibbotson
Stocks that are less liquid, meaning their shares trade with less volume, offer the potential for higher returns.
April 2013 by Roger Ibbotson
Stocks that are less liquid, meaning their shares trade with less volume, offer the potential for higher returns.
Making Sense of Master Limited Partnership Tax Rules
November 2012 by Mary Lyman
The unique structure of MLPs gives them tax advantages, but also makes them more complex. Find out how distributions and gains are taxed.
November 2012 by Mary Lyman
The unique structure of MLPs gives them tax advantages, but also makes them more complex. Find out how distributions and gains are taxed.
Traits to Look for in Growth Stocks
October 2012 by Robert Bartolo
Earnings per share growth of at least 10% is key, but revenue growth also matters, according to the manager of the oldest growth stock mutual fund.
October 2012 by Robert Bartolo
Earnings per share growth of at least 10% is key, but revenue growth also matters, according to the manager of the oldest growth stock mutual fund.
What Is the Sharpe Ratio?
October 2012 by Jenna Brashear
How to calculate one of the most popular financial ratios and use it to compare the risk/return trade-off of investments.
October 2012 by Jenna Brashear
How to calculate one of the most popular financial ratios and use it to compare the risk/return trade-off of investments.
The “New” Edge: Characteristics of Winning Stocks
September 2012 by Christina Wise
Strong-performing stocks often have new products, new management or lead a new industry. These companies have strong growth and high ROE.
September 2012 by Christina Wise
Strong-performing stocks often have new products, new management or lead a new industry. These companies have strong growth and high ROE.
Uncovering Opportunities in a Tumultuous Market
September 2012 by Christine Benz
Opportunities exist for investors willing to seek out stocks with discounted valuations and wide business moats.
September 2012 by Christine Benz
Opportunities exist for investors willing to seek out stocks with discounted valuations and wide business moats.
Using Quantitative Strategies to Pick Winning Mid-Cap Stocks
September 2012 by Charles Rotblut, Brian Peery
The co-manager of a top-performing mid-cap mutual fund explains how a quantitative process leads to better stock selection and portfolio management.
September 2012 by Charles Rotblut, Brian Peery
The co-manager of a top-performing mid-cap mutual fund explains how a quantitative process leads to better stock selection and portfolio management.
An Insider’s Look at Brokerage Research
July 2012 by Mike Mayo
Executives pressure analysts to publish positive commentary, but there are warning signs individual investors can identify.
July 2012 by Mike Mayo
Executives pressure analysts to publish positive commentary, but there are warning signs individual investors can identify.
Valuing Young Growth Companies
December 2011 by Aswath Damodaran
Valuations for growth companies with limited histories can be performed with this six-step method, but it requires making assumptions about the future.
December 2011 by Aswath Damodaran
Valuations for growth companies with limited histories can be performed with this six-step method, but it requires making assumptions about the future.
Master Limited Partnerships: Income From a Unique Structure and Industry
November 2011 by Charles Rotblut, Kenny Feng
MLPs are pass-through entities and have been able to pay consistent distributions due to steady demand and federally regulated prices.
November 2011 by Charles Rotblut, Kenny Feng
MLPs are pass-through entities and have been able to pay consistent distributions due to steady demand and federally regulated prices.
Investing in Asia for Dividend Income
October 2011 by Charles Rotblut, Jesper Madsen
Going overseas for income can give exposure to stronger dividend growth. This fund manager explains what to look for when analyzing Asian stocks.
October 2011 by Charles Rotblut, Jesper Madsen
Going overseas for income can give exposure to stronger dividend growth. This fund manager explains what to look for when analyzing Asian stocks.
A Cautionary Note About Robert Shiller's CAPE
September 2011 by Stephen E. Wilcox
Stocks may be less expensive than the CAPE (cyclically adjusted price-earnings ratio) suggests because of the length of the average business cycle and troublesome historical comparisons.
September 2011 by Stephen E. Wilcox
Stocks may be less expensive than the CAPE (cyclically adjusted price-earnings ratio) suggests because of the length of the average business cycle and troublesome historical comparisons.
Historical Performance and Future Stock Market
Return Uncertainties
September 2011 by Ed Easterling
The long-term large-cap return of nearly 10% is inflated by the low valuations that existed in 1926, requiring investors to adjust their future expectations.
September 2011 by Ed Easterling
The long-term large-cap return of nearly 10% is inflated by the low valuations that existed in 1926, requiring investors to adjust their future expectations.
Chasing Dividend Yield for Income: Three Reasons to Be Wary
July 2011 by Rod Greenshields
Declines in overall yields may result in dividend strategies failing to provide adequate levels of income for retirees.
July 2011 by Rod Greenshields
Declines in overall yields may result in dividend strategies failing to provide adequate levels of income for retirees.
Using SEC Filings to Identify Risk Factors
June 2011 by Michelle Leder
Potential problems in companies can be identified before they wreck havoc with your portfolio by looking at SEC filings.
June 2011 by Michelle Leder
Potential problems in companies can be identified before they wreck havoc with your portfolio by looking at SEC filings.
How Your Buy and Sell Orders Get Filled
May 2011 by Charles Rotblut, Chris Nagy
The type, size and timing of an order to buy or sell a security impacts if, when and at what price your transaction gets filled.
May 2011 by Charles Rotblut, Chris Nagy
The type, size and timing of an order to buy or sell a security impacts if, when and at what price your transaction gets filled.
Four Fundamental Tests Every Stock Investor Should Use
April 2011 by Michael C. Thomsett
Four indicators are key to stock analysis and can help evaluate a company relative to both its past and its peers.
April 2011 by Michael C. Thomsett
Four indicators are key to stock analysis and can help evaluate a company relative to both its past and its peers.
Is the Stock Market Efficient?
November 2010 by Prem C. Jain
Warren Buffet does not say beating the market is easy, but his writings have provided tips for achieving above-average returns.
November 2010 by Prem C. Jain
Warren Buffet does not say beating the market is easy, but his writings have provided tips for achieving above-average returns.
What You Can Learn From Shareholder Letters
October 2010 by Eric R. Heyman
Shareholder letters and other related communication can provide a method for evaluating a company’s management. Find out what to look for in this article from the archives.
October 2010 by Eric R. Heyman
Shareholder letters and other related communication can provide a method for evaluating a company’s management. Find out what to look for in this article from the archives.
The Importance of Book Value
July 2010 by Charles Rotblut
Why the price-to-book ratio is the most effective measure of valuation.
July 2010 by Charles Rotblut
Why the price-to-book ratio is the most effective measure of valuation.
Quantitative Strategies for Selecting Stocks
May 2010 by Richard Tortoriello
The results of more than 1,200 backtests found seven basic favorable factors from which Tortoriello gleaned four quantitative strategies for beating the market.
May 2010 by Richard Tortoriello
The results of more than 1,200 backtests found seven basic favorable factors from which Tortoriello gleaned four quantitative strategies for beating the market.
Risky Business: How to Pick Winning Property & Casualty Insurer Stocks
August 2009 by John Deysher
Many great fortunes have been built by smart insurance operators. A good example is Berkshire Hathaway, which has interests in several insurers and reinsurers covering a variety of property and casualty risks. At its heart, the P&C insurance business is one of shared risk--and proper pricing of that risk. How to spot opportunities in the risk business.
August 2009 by John Deysher
Many great fortunes have been built by smart insurance operators. A good example is Berkshire Hathaway, which has interests in several insurers and reinsurers covering a variety of property and casualty risks. At its heart, the P&C insurance business is one of shared risk--and proper pricing of that risk. How to spot opportunities in the risk business.
Lowering Your Costs: How to Take Advantage of Direct Purchase Plans
June 2009 by Maria Crawford Scott
A simple, low-cost and low-minimum way to start investing in individual stocks is to go straight to the company source. Direct purchase plans allow you to buy shares directly from the company without a broker. A look at how the plans work and how to find them.
June 2009 by Maria Crawford Scott
A simple, low-cost and low-minimum way to start investing in individual stocks is to go straight to the company source. Direct purchase plans allow you to buy shares directly from the company without a broker. A look at how the plans work and how to find them.
Don’t Fight the Fed: Interest Rates and Their Impact on the Stock Market
May 2009 by Sam Stovall
What is the one thing an investor should monitor in order to gauge the health of the economy and the direction of the stock market? Interest rates. A look at how they affect stock prices.
May 2009 by Sam Stovall
What is the one thing an investor should monitor in order to gauge the health of the economy and the direction of the stock market? Interest rates. A look at how they affect stock prices.
How to Set and Revise Realistic Price Targets for Your Stocks
May 2009 by Donald Cassidy
Stocks go where they want to, despite what investors might wish would happen. How to develop a realistic sales-price target--and when it should be revised.
May 2009 by Donald Cassidy
Stocks go where they want to, despite what investors might wish would happen. How to develop a realistic sales-price target--and when it should be revised.
The Sell Decision: What to Do After a Severe Market Meltdown
November 2008 by Donald Cassidy
For current investors, the focus now should be on what to do in and after a severe bear market if you are investing your own portfolio of individual stocks.
November 2008 by Donald Cassidy
For current investors, the focus now should be on what to do in and after a severe bear market if you are investing your own portfolio of individual stocks.
How to Nail Down Your Profits: 20 Questions for a Disciplined Approach
August 2008 by Donald Cassidy
Much attention is given to studying what to buy, but inadequate energy is devoted to the hold/sell decision. This is backward, since dollars already invested are at more risk than cash not yet invested. How you can implement a disciplined approach to your decisions on whether and when to sell.
August 2008 by Donald Cassidy
Much attention is given to studying what to buy, but inadequate energy is devoted to the hold/sell decision. This is backward, since dollars already invested are at more risk than cash not yet invested. How you can implement a disciplined approach to your decisions on whether and when to sell.
Measuring Managers' Mettle: A Revealing Investment Gauge
August 2008 by Stephen T. McClellan
A critical part of the investment evaluation process is gauging management effectiveness, quality, and character. Surprisingly, this is often disregarded by Wall Street. What to look for to determine whether management can be trusted.
August 2008 by Stephen T. McClellan
A critical part of the investment evaluation process is gauging management effectiveness, quality, and character. Surprisingly, this is often disregarded by Wall Street. What to look for to determine whether management can be trusted.
Money in the Bank: How to Find Opportunities in a Fallen Sector
July 2008 by John Deysher
In the past year or so, bank stock prices have fallen sharply. But declining stock prices yield opportunity. Many good banks have been tarred with the same brush as the troubled banks. How do you analyze a bank? A brief look.
July 2008 by John Deysher
In the past year or so, bank stock prices have fallen sharply. But declining stock prices yield opportunity. Many good banks have been tarred with the same brush as the troubled banks. How do you analyze a bank? A brief look.
Direct Purchase Plans: The Foreign Option
June 2008 by Jon Harris
One approach to investing internationally is to purchase ADRs, certificates that trade on a U.S. exchange but represent foreign firms. Several banks offer direct purchase plans for their ADR firms.
June 2008 by Jon Harris
One approach to investing internationally is to purchase ADRs, certificates that trade on a U.S. exchange but represent foreign firms. Several banks offer direct purchase plans for their ADR firms.
The Stock Market and the Media: Turn It on, But Tune It Out
May 2008 by Dick Davis
Many investors believe that keeping abreast of the news is one key to investment success. But Dick Davis believed one of the worst things that can happen to long-term investors is to be instantly and totally informed about their stocks. Read this article from our archives to find out why.
May 2008 by Dick Davis
Many investors believe that keeping abreast of the news is one key to investment success. But Dick Davis believed one of the worst things that can happen to long-term investors is to be instantly and totally informed about their stocks. Read this article from our archives to find out why.
The Role of Diversification in an Individual Stock Portfolio
April 2008 by Vitaliy N. Katsenelson
Managing the emotional realities of holding too many stocks or too few is one of the more subjective aspects of risk management through diversification.
April 2008 by Vitaliy N. Katsenelson
Managing the emotional realities of holding too many stocks or too few is one of the more subjective aspects of risk management through diversification.
Cheaper by the Dozen: 12 Wall Street Classics for 2008
January 2008 by John Deysher
Recommended reading for stock investors on a variety of investment topics.
January 2008 by John Deysher
Recommended reading for stock investors on a variety of investment topics.
Finding Growth Stock Winners: Focus on 8 Fundamental Factors
January 2008 by Louis Navellier
There is no one magic-bullet variable that is most important in picking winning stocks. Instead, you should focus on eight fundamental variables.
January 2008 by Louis Navellier
There is no one magic-bullet variable that is most important in picking winning stocks. Instead, you should focus on eight fundamental variables.
LBOs: Winners and Losers in the Buyout Game
August 2007 by Robert Benjamin
The LBO boom shows no signs of abating, producing winners and losers among investors. A look at how some portfolio managers have been coping--and what it means to investors in general.
August 2007 by Robert Benjamin
The LBO boom shows no signs of abating, producing winners and losers among investors. A look at how some portfolio managers have been coping--and what it means to investors in general.
Investing in BDCs: Private Equity for Public Shareholders
June 2007 by John Deysher
Private equity is a term we're hearing a lot about these days, with many companies large and small going private. How can you get in on a piece of the action? A look at Business Development Companies.
June 2007 by John Deysher
Private equity is a term we're hearing a lot about these days, with many companies large and small going private. How can you get in on a piece of the action? A look at Business Development Companies.
Is the Historic Small-Cap Cycle Coming to an End?
May 2007 by AAII Staff
An analysis by T. Rowe Price suggests that the best days of the small caps may be behind us.
May 2007 by AAII Staff
An analysis by T. Rowe Price suggests that the best days of the small caps may be behind us.
The Hybrid Advantage: Why Preferreds Are Preferred
May 2007 by John Deysher
The last few years have been tough for yield-oriented investors. But there is one income vehicle that can augment holdings in low-yielding common stocks. A closer look at the preferred stock advantage.
May 2007 by John Deysher
The last few years have been tough for yield-oriented investors. But there is one income vehicle that can augment holdings in low-yielding common stocks. A closer look at the preferred stock advantage.
The Secrets of Picking Great Growth Stocks
April 2007 by Fred Kobrick
Investing is simply common sense, along with a focus on the key factors that drive the greatest stocks. A look at the four factors that seem to be common, identifying traits of the greatest companies and stocks.
April 2007 by Fred Kobrick
Investing is simply common sense, along with a focus on the key factors that drive the greatest stocks. A look at the four factors that seem to be common, identifying traits of the greatest companies and stocks.
12 Key Lessons Learned About Technology Investing
January 2007 by Bob Turner
The technology sector may not be all that it used to be, but it still offers some compelling investment opportunities. Burnt-fingered investors, scorched by tech stock losses, may want to take heed of some useful lessons about investing in the sector.
January 2007 by Bob Turner
The technology sector may not be all that it used to be, but it still offers some compelling investment opportunities. Burnt-fingered investors, scorched by tech stock losses, may want to take heed of some useful lessons about investing in the sector.
Investment Quality Control: The Importance of Risk Management
January 2007 by Chris Orndorff
Modern quantitative risk measures can provide investors with a more accurate way of assessing the risk level of their portfolios and ensuring that their portfolio is performing as was originally intended.
January 2007 by Chris Orndorff
Modern quantitative risk measures can provide investors with a more accurate way of assessing the risk level of their portfolios and ensuring that their portfolio is performing as was originally intended.
Earnings Drive Businesses, But Expectations Drive Stock Prices
November 2006 by Brian Luster
Investors commonly confuse a good business with a good investment. Many good businesses have high expectations embedded in their stock prices. As an investor, you face the task of recognizing whether current expectations are overly optimistic or overly pessimistic. Changes in expectations - not earnings growth - move stock prices.
November 2006 by Brian Luster
Investors commonly confuse a good business with a good investment. Many good businesses have high expectations embedded in their stock prices. As an investor, you face the task of recognizing whether current expectations are overly optimistic or overly pessimistic. Changes in expectations - not earnings growth - move stock prices.
The Yield Curve: A Route to Better Investment Decisions
November 2006 by Deborah Weir
Looking for an easy-to-use tool to help you identify major changes in the economy that could change a company’s fortunes? Fortunately for individual investors, such a tool does indeed exist: the U.S. Treasury yield curve.
November 2006 by Deborah Weir
Looking for an easy-to-use tool to help you identify major changes in the economy that could change a company’s fortunes? Fortunately for individual investors, such a tool does indeed exist: the U.S. Treasury yield curve.
Parting Company: 4 Rules for When to Sell
September 2006 by John Deysher
Selling is one of the toughest parts of investing. Doing it well can make you multiples, but doing it poorly can cost you dearly. A look at four basic rules for how to know when to let go.
September 2006 by John Deysher
Selling is one of the toughest parts of investing. Doing it well can make you multiples, but doing it poorly can cost you dearly. A look at four basic rules for how to know when to let go.
"Predicting the Markets of Tomorrow": The James O'Shaughnessy Approach
August 2006 by Cara Scatizzi
Can past trends indicate future trends? James O'Shaughnessy believes they can. In his newest book, O'Shaughnessy examines stock market history and develops a stock selection approach for individual investors that attempts to take maximum advantage of current trends.
August 2006 by Cara Scatizzi
Can past trends indicate future trends? James O'Shaughnessy believes they can. In his newest book, O'Shaughnessy examines stock market history and develops a stock selection approach for individual investors that attempts to take maximum advantage of current trends.
5 Memorable Mistakes and the Lessons I Learned
July 2006 by John Deysher
Winning in the stock market is often about not losing, and one of the ways to avoid losses is to learn from your mistakes.
July 2006 by John Deysher
Winning in the stock market is often about not losing, and one of the ways to avoid losses is to learn from your mistakes.
A Growth Investor's Guide to Evaluating Earnings
June 2006 by Paul Quinn
Earnings are the single most important determinant of a stock’s price. But how do you evaluate a firm’s earnings? A step-by-step approach for evaluating earnings from the perspective of an investor seeking reasonably priced growth.
June 2006 by Paul Quinn
Earnings are the single most important determinant of a stock’s price. But how do you evaluate a firm’s earnings? A step-by-step approach for evaluating earnings from the perspective of an investor seeking reasonably priced growth.
Bypassing the Broker: AAII's 2006 Guide to Direct Purchase Plans
June 2006 by Cara Scatizzi
Buying stock with little or no commission is the major attraction of direct purchase plans. This year’s annual guide lists 460 dividend reinvestment plan companies that will sell their initial shares directly to the public.
June 2006 by Cara Scatizzi
Buying stock with little or no commission is the major attraction of direct purchase plans. This year’s annual guide lists 460 dividend reinvestment plan companies that will sell their initial shares directly to the public.
Bypassing the Broker: AAII's 2006 Guide to Direct Purchase Plans
June 2006 by Cara Scatizzi
Buying stock with little or no commission is the major attraction of direct purchase plans. This year’s annual guide lists 460 dividend reinvestment plan companies that will sell their initial shares directly to the public.
June 2006 by Cara Scatizzi
Buying stock with little or no commission is the major attraction of direct purchase plans. This year’s annual guide lists 460 dividend reinvestment plan companies that will sell their initial shares directly to the public.
15 Short-Cuts and Biases That Lead to Bad Investment Decisions
May 2006 by Paul S. Szczygiel
Mental short-cuts simplify our complex world and help individuals form rules of thumb that work for many decisions. But they don’t work perfectly and can give rise to misperceptions that lead to decision-making errors. Worse, most people are unaware these biases exist. Fifteen common mental mistakes that lead to money-losing investment decisions.
May 2006 by Paul S. Szczygiel
Mental short-cuts simplify our complex world and help individuals form rules of thumb that work for many decisions. But they don’t work perfectly and can give rise to misperceptions that lead to decision-making errors. Worse, most people are unaware these biases exist. Fifteen common mental mistakes that lead to money-losing investment decisions.
Foreign Investing: Keeping It Simple
April 2006 by Ron Muhlenkamp
In the early 1990s, popular wisdom was pushing foreign investments. But you can't extrapolate the past to arrive at the future. Instead, you have to have some measure of value. When investing overseas, you must take into consideration not only the markets, but also the value of the dollar. A look at the value of the dollar and when it does well.
April 2006 by Ron Muhlenkamp
In the early 1990s, popular wisdom was pushing foreign investments. But you can't extrapolate the past to arrive at the future. Instead, you have to have some measure of value. When investing overseas, you must take into consideration not only the markets, but also the value of the dollar. A look at the value of the dollar and when it does well.
Your Brokerage Account: Protection Beyond SIPC
April 2006 by John Deysher
If a brokerage firm goes belly-up, how protected are customer accounts from creditors and other parties? While brokerage busts have been rare in recent years, it's a question worth pondering. A look at where you stand in the event of a problem.
April 2006 by John Deysher
If a brokerage firm goes belly-up, how protected are customer accounts from creditors and other parties? While brokerage busts have been rare in recent years, it's a question worth pondering. A look at where you stand in the event of a problem.
The Best Day of the Year to Invest in the Market
February 2006 by Robert Muksian
The timing of investments is always a dilemma for the individual investor. Looking backward, it is easy to find comprehensive analyses showing the best days to have invested. But looking forward, the probability of timing those most opportune investment opportunities is essentially zero. However, there is one day of the year that comes close to being the best day of any year.
February 2006 by Robert Muksian
The timing of investments is always a dilemma for the individual investor. Looking backward, it is easy to find comprehensive analyses showing the best days to have invested. But looking forward, the probability of timing those most opportune investment opportunities is essentially zero. However, there is one day of the year that comes close to being the best day of any year.
Going Dark: The Harsh Reality of Voluntary Deregistration
January 2006 by John Deysher
A growing number of small companies are "going dark"--voluntarily deregistering with the SEC and delisting their shares. The result is often a falling share price and investors left in the dark about the firm's finances and prospects. What it all means, and what you should do if you are left in the dark with one of your holdings.
January 2006 by John Deysher
A growing number of small companies are "going dark"--voluntarily deregistering with the SEC and delisting their shares. The result is often a falling share price and investors left in the dark about the firm's finances and prospects. What it all means, and what you should do if you are left in the dark with one of your holdings.
Evaluating IPOs in Today's Saner Market Environment
November 2005 by Robert Bridges, John P. Huber
Many investors swore off IPOs after so many collapsed in the 2000–2002 bear market. But the last two years have seen a resurgence of IPO offerings. How can individual investors take a sober look at IPOs in today’s saner environment? As with all investing, caveat emptor rules. How to evaluate an IPO.
November 2005 by Robert Bridges, John P. Huber
Many investors swore off IPOs after so many collapsed in the 2000–2002 bear market. But the last two years have seen a resurgence of IPO offerings. How can individual investors take a sober look at IPOs in today’s saner environment? As with all investing, caveat emptor rules. How to evaluate an IPO.
The IPO Prospectus: How to Read the Fine Print
November 2005 by John Deysher
With hundreds of IPOs to choose from, how do you sort among the rubble to find the gems? Start with the prospectus, which covers most of the important areas you need to focus on. What to look for in an IPO prospectus.
November 2005 by John Deysher
With hundreds of IPOs to choose from, how do you sort among the rubble to find the gems? Start with the prospectus, which covers most of the important areas you need to focus on. What to look for in an IPO prospectus.
When to Sell Stocks to Cut Your Losses
September 2005 by William J. O'Neil
Success in the stock market is as much about limiting losses as it is about riding winning stocks. How can you cut your losses? By following a rule-based selling strategy. How to sell when a stock doesn't pan out.
September 2005 by William J. O'Neil
Success in the stock market is as much about limiting losses as it is about riding winning stocks. How can you cut your losses? By following a rule-based selling strategy. How to sell when a stock doesn't pan out.
The Folly of Crowd-Following: Popular Stocks=Unpopular Returns
August 2005 by Edwin D. Everett
The evidence is in: Investors would be far better off leaving the hottest stocks out of their portfolios and focusing on business fundamentals and valuations.
August 2005 by Edwin D. Everett
The evidence is in: Investors would be far better off leaving the hottest stocks out of their portfolios and focusing on business fundamentals and valuations.
Large-Cap Growth: Can It Regain the Market Leadership?
July 2005 by Steve Norwitz
Since the great Market Bubble burst in 2000, large-cap growth stocks have been perennial laggards, trailing small caps and value in each of the past five years. Can these stocks regain their market leadership? Reasons for optimism—and casues for concern.
July 2005 by Steve Norwitz
Since the great Market Bubble burst in 2000, large-cap growth stocks have been perennial laggards, trailing small caps and value in each of the past five years. Can these stocks regain their market leadership? Reasons for optimism—and casues for concern.
Stock Investing ABCs: How to Read an Annual Report
July 2005 by John Deysher
Annual reports are like chapters in a company's life, giving a detailed account of the year past and the outlook for the future. While the financial numbers reveal part of the story, you can tell a lot just by reading the text. How to get the most out of an annual report.
July 2005 by John Deysher
Annual reports are like chapters in a company's life, giving a detailed account of the year past and the outlook for the future. While the financial numbers reveal part of the story, you can tell a lot just by reading the text. How to get the most out of an annual report.
Low-Cost Investing: A Guide to Dividend Reinvestment Plans
June 2005 by AAII Staff
Buying stock with little or no commission is the major attraction of dividend reinvestment plans. This year's annual guide lists over 300 companies that will sell their initial shares directly to the public.
June 2005 by AAII Staff
Buying stock with little or no commission is the major attraction of dividend reinvestment plans. This year's annual guide lists over 300 companies that will sell their initial shares directly to the public.
Basic Ratios for Building a Dividend-Based Stock Portfolio
May 2005 by Don Schreiber
Stock prices rise and fall. But there is one constant in stock investing, and that is dividends, which arrive every quarter. How do you build a portfolio of solid dividend-paying stocks? The building blocks you need to get started.
May 2005 by Don Schreiber
Stock prices rise and fall. But there is one constant in stock investing, and that is dividends, which arrive every quarter. How do you build a portfolio of solid dividend-paying stocks? The building blocks you need to get started.
Margin Accounts: A Double-Edged Sword
May 2005 by John Gannon
A margin account allows you to borrow money from your broker to buy securities. This magnifies returns, both on the upside and downside. The risks of trading on margin, and what you need to know about margin accounts, how they operate, and the reasons for margin calls.
May 2005 by John Gannon
A margin account allows you to borrow money from your broker to buy securities. This magnifies returns, both on the upside and downside. The risks of trading on margin, and what you need to know about margin accounts, how they operate, and the reasons for margin calls.
The Proxy Edge: Exercising Your Shareholder Rights
April 2005 by John Deysher
Stock Strategies: Many investors receive the annual proxy statement and simply throw it in the trash. But that is throwing away a vote, and the right to keep management's interest in line with your own. How to get the most out of a proxy statement.
April 2005 by John Deysher
Stock Strategies: Many investors receive the annual proxy statement and simply throw it in the trash. But that is throwing away a vote, and the right to keep management's interest in line with your own. How to get the most out of a proxy statement.
From Lemons to Lemonade: Post-Bankruptcy Investing
January 2005 by John Deysher
Tremendous bargains are sometimes hidden under clouds of public financial disgrace, offering unique investment opportunities to investors willing to consider firms that have recently emerged from bankruptcy.
January 2005 by John Deysher
Tremendous bargains are sometimes hidden under clouds of public financial disgrace, offering unique investment opportunities to investors willing to consider firms that have recently emerged from bankruptcy.
Stock Return Outlook: Not-So-Great Expectations
January 2005 by Steve Norwitz
Stock Strategies: Given current valuation levels and reasonable expectations for earnings and dividend growth, investors should moderate their stock expectations to mid-to-high-single-digit return levels over the next several years.
January 2005 by Steve Norwitz
Stock Strategies: Given current valuation levels and reasonable expectations for earnings and dividend growth, investors should moderate their stock expectations to mid-to-high-single-digit return levels over the next several years.
Do Elections Sway the Markets? Watch the Fed Instead
November 2004 by AAII Staff
The 2004 presidential election is over, but the outcome may not matter—at least to the markets. Two new studies suggest that you should instead focus on Fed policy for clues on which way the markets may be heading.
November 2004 by AAII Staff
The 2004 presidential election is over, but the outcome may not matter—at least to the markets. Two new studies suggest that you should instead focus on Fed policy for clues on which way the markets may be heading.
Managing Risk: The Dividend Payoff
November 2004 by John Buckingham, Mark Mowrey
Stock Strategies: Recent history suggests that an investment strategy focused on dividend-paying large-cap and mid-cap stocks can offer a perfect blend of maximum returns at a below-market level of risk.
November 2004 by John Buckingham, Mark Mowrey
Stock Strategies: Recent history suggests that an investment strategy focused on dividend-paying large-cap and mid-cap stocks can offer a perfect blend of maximum returns at a below-market level of risk.
Navigating Through EDGAR: What to Look for on the SEC Web Site
September 2004 by John Deysher
Stock Strategies: One of the most useful Web sites for investors is the SEC's EDGAR, which contains required filings and forms of public corporations, with detailed financial disclosures. A guide to the the key filings.
September 2004 by John Deysher
Stock Strategies: One of the most useful Web sites for investors is the SEC's EDGAR, which contains required filings and forms of public corporations, with detailed financial disclosures. A guide to the the key filings.
Navigating Through EDGAR: What to Look for on the SEC Web Site
September 2004 by John Deysher
One of the most useful Web sites for investors is the SEC's EDGAR, which contains required filings and forms of public corporations, with detailed financial disclosures. A guide to the the key filings.
September 2004 by John Deysher
One of the most useful Web sites for investors is the SEC's EDGAR, which contains required filings and forms of public corporations, with detailed financial disclosures. A guide to the the key filings.
The Basics: What Is the Over-the-Counter Market?
August 2004 by John Deysher
Stock Strategies: "Over the counter" loosely applies to securities not traded on an organized exchange. Although they encompass Nasdaq stocks, they also include the less-regulated OTC Bulletin Board and the unregulated Pink Sheets.
August 2004 by John Deysher
Stock Strategies: "Over the counter" loosely applies to securities not traded on an organized exchange. Although they encompass Nasdaq stocks, they also include the less-regulated OTC Bulletin Board and the unregulated Pink Sheets.
How Many Stocks Do You Need to Be Diversified?
July 2004 by Daniel J. Burnside
Stock Strategies: It has become conventional wisdom that diversification beyond 10 or 20 securities is unnecessary. But a fresh look at the research indicates you will need many more stocks to be truly diversified.
July 2004 by Daniel J. Burnside
Stock Strategies: It has become conventional wisdom that diversification beyond 10 or 20 securities is unnecessary. But a fresh look at the research indicates you will need many more stocks to be truly diversified.
How Many Stocks Do You Need to Be Diversified?
July 2004 by Daniel J. Burnside, Donald R. Chambers, John S. Zdanowicz
Stock Strategies: It has become conventional wisdom that diversification beyond 10 or 20 securities is unnecessary. But a fresh look at the research indicates you will need many more stocks to be truly diversified.
July 2004 by Daniel J. Burnside, Donald R. Chambers, John S. Zdanowicz
Stock Strategies: It has become conventional wisdom that diversification beyond 10 or 20 securities is unnecessary. But a fresh look at the research indicates you will need many more stocks to be truly diversified.
Investing in DRPs: A Guide to Dividend Reinvestment Plans 2004
June 2004 by AAII Staff
Stock Strategies: Buying a stock with little or no commission is the major attraction of dividend reinvestment plans. This year's annual guide lists nearly 300 companies that will sell their initial shares directly to the public.
June 2004 by AAII Staff
Stock Strategies: Buying a stock with little or no commission is the major attraction of dividend reinvestment plans. This year's annual guide lists nearly 300 companies that will sell their initial shares directly to the public.
To Find Small Caps, Don't Neglect the Large: Spin-offs for Fun and Profit
May 2004 by John Deysher
Spin-offs can offer unique investment opportunities in good markets and bad. However, not all spin-offs are created equal.
May 2004 by John Deysher
Spin-offs can offer unique investment opportunities in good markets and bad. However, not all spin-offs are created equal.
The Importance of Dividends in a Low-Return Environment
April 2004 by John Snare
Many analysts believe stock returns over the next several years will be well below the historical average. What strategies worked in previous low-return environments? A look at the last flat market--1965 to 1982.
April 2004 by John Snare
Many analysts believe stock returns over the next several years will be well below the historical average. What strategies worked in previous low-return environments? A look at the last flat market--1965 to 1982.
Your Order Please: A Guide to the Different Ways to Buy and Sell Securities
April 2004 by John Deysher
Understand the most common stock order types, such as market orders, not-held orders, fill-or-kill orders, as well as day orders and good-til-canceled.
April 2004 by John Deysher
Understand the most common stock order types, such as market orders, not-held orders, fill-or-kill orders, as well as day orders and good-til-canceled.
How Conference Calls Can Help Investors Read the Tea Leaves
January 2004 by John Deysher
Corporate conference calls are open to the public, and you can obtain the same unfiltered information as the institutions.
January 2004 by John Deysher
Corporate conference calls are open to the public, and you can obtain the same unfiltered information as the institutions.
When to Sell and Nail Down Your Profits—While You Still Have Them
January 2004 by William J. O'Neil
When you go through a complete market cycle, your real objective is to nail down as much of the profits you've built as possible. Proven sell rules to follow so you can keep your profits.
January 2004 by William J. O'Neil
When you go through a complete market cycle, your real objective is to nail down as much of the profits you've built as possible. Proven sell rules to follow so you can keep your profits.
An Investor's Guide to Corporate Insider Trading Activity
November 2003 by John Deysher
Insider buying is much more significant than insider selling. Insiders may sell their shares for a variety of reasons. But typically insiders buy their shares on the open market for one reason--the stock is cheap!
November 2003 by John Deysher
Insider buying is much more significant than insider selling. Insiders may sell their shares for a variety of reasons. But typically insiders buy their shares on the open market for one reason--the stock is cheap!
Investing in DRPs: A Guide to Dividend Reinvestment Plans
June 2003 by AAII Staff
A major attraction of a dividend reinvestment plan is the opportunity to buy shares with little or no commissions levied. Many companies sell initial shares directly to investors so that no purchases need to be made through a broker.
June 2003 by AAII Staff
A major attraction of a dividend reinvestment plan is the opportunity to buy shares with little or no commissions levied. Many companies sell initial shares directly to investors so that no purchases need to be made through a broker.
The Predictive Power of Price-Earnings and Price-Sales Ratios
February 2003 by Richard Goedde
Both price-earnings and price-sales ratios are significant factors in predicting future stock price performance over the next year.
February 2003 by Richard Goedde
Both price-earnings and price-sales ratios are significant factors in predicting future stock price performance over the next year.
Bill Provides a New Framework for Accounting & Corporate Governance
September 2002 by John Markese
A summary of the Public Company Accounting Reform and Investor Protection Act of 2002.
September 2002 by John Markese
A summary of the Public Company Accounting Reform and Investor Protection Act of 2002.
Shareholder Letter Revelations: Can You Trust the Leadership?
September 2002 by Laura J. Rittenhouse
The quality of management, particularly the CEO, is an important indicator when evaluating a company. Astute investors will look for evidence of the CEO's qualities in the shareholder letter.
September 2002 by Laura J. Rittenhouse
The quality of management, particularly the CEO, is an important indicator when evaluating a company. Astute investors will look for evidence of the CEO's qualities in the shareholder letter.
How to Take Your Emotions Out of the Sell Decision
August 2002 by Jim Norris
When you decide to sell a stock, you are changing your mind about the stock's prospects. But changing one's mind is easier said than done, particularly in the investment world where uncertainty and emotions run high.
August 2002 by Jim Norris
When you decide to sell a stock, you are changing your mind about the stock's prospects. But changing one's mind is easier said than done, particularly in the investment world where uncertainty and emotions run high.
Individual Investor's Guide to Dividend Reinvestment Plans 2002
June 2002 by AAII Staff
The major attraction of a dividend reinvestment plan is the opportunity to buy shares with little or no commissions levied. Over a third of the DRP companies will sell the initial shares directly to the public.
June 2002 by AAII Staff
The major attraction of a dividend reinvestment plan is the opportunity to buy shares with little or no commissions levied. Over a third of the DRP companies will sell the initial shares directly to the public.
What Steps You Should Take When Your Stock's Price Falls
November 2001 by Wayne A. Thorp
There are no simple rules that will tell you when to sell a stock, but an in-depth understanding of what economic, industry, and firm fundamentals drive the price will better equip you for making decisions.
November 2001 by Wayne A. Thorp
There are no simple rules that will tell you when to sell a stock, but an in-depth understanding of what economic, industry, and firm fundamentals drive the price will better equip you for making decisions.
When to Sell a Stock: Practical and Profitable Rules
May 2001 by Donald Cassidy
Many investors feel the odds are against them if they sell. Reinforcing that perception is the mutual funds industry, which constantly drums the “buy and hold” refrain, often translated into “buy and never sell.” That is ironic because growth funds have holding periods of slightly under a year.
May 2001 by Donald Cassidy
Many investors feel the odds are against them if they sell. Reinforcing that perception is the mutual funds industry, which constantly drums the “buy and hold” refrain, often translated into “buy and never sell.” That is ironic because growth funds have holding periods of slightly under a year.
Fundamental Analysis: A Closer Look at Gross Margins
July 2000 by Marcus W Robins
Amid all the detailed numbers on the income statement, gross margin is one figure that may be worth obsessing over, because it sits at the middle of several of the key accounting formulas that determine business success.
July 2000 by Marcus W Robins
Amid all the detailed numbers on the income statement, gross margin is one figure that may be worth obsessing over, because it sits at the middle of several of the key accounting formulas that determine business success.
A Look at Momentum Investing: Screening for Stocks on a Roll
April 2000 by Wayne A. Thorp
Stock Screening: Momentum investors purchase stocks that are rapidly rising in price in the belief that the rising price will attract other investors, who will drive up the price even more. One key is recognizing when the momentum is beginning to fade.
April 2000 by Wayne A. Thorp
Stock Screening: Momentum investors purchase stocks that are rapidly rising in price in the belief that the rising price will attract other investors, who will drive up the price even more. One key is recognizing when the momentum is beginning to fade.
Sell Rules to Build Your Stock Investing Performance
September 1999 by William J. O'Neil
For many investors, selling is their greatest weakness. Spend time learning from your mistakes, and consistently use sell rules that keep the emotion and ego out of investing.
September 1999 by William J. O'Neil
For many investors, selling is their greatest weakness. Spend time learning from your mistakes, and consistently use sell rules that keep the emotion and ego out of investing.
Measures of Market Breadth: A Look at Trading Statistics
October 1998 by John Bajkowski
Stock Analysis Workshop: Market breadth statistics attempt to measure how widely the full range of stocks are participating in stock market movement, and are more informative about market behavior than simply following changes in an index.
October 1998 by John Bajkowski
Stock Analysis Workshop: Market breadth statistics attempt to measure how widely the full range of stocks are participating in stock market movement, and are more informative about market behavior than simply following changes in an index.
Shadow Stock Rookies: Firms That Are New to the 1998 Listing
February 1998 by John Bajkowski
Stock Analysis Workshop: A closer look at the 105 stocks new to AAII´s 1998 Shadow Stock list.
February 1998 by John Bajkowski
Stock Analysis Workshop: A closer look at the 105 stocks new to AAII´s 1998 Shadow Stock list.
Value Investing: A Look at the Benjamin Graham Approach
May 1996 by Maria Crawford Scott
Stock Analysis Workshop: Looking to the father of stock analysis for a classic approach to stock selection: Benjamin Graham and value investing.
May 1996 by Maria Crawford Scott
Stock Analysis Workshop: Looking to the father of stock analysis for a classic approach to stock selection: Benjamin Graham and value investing.
Screening for Cash-Rich Firms That Will Put Their Money to Good Use
April 1996 by John Bajkowski
Stock Analysis Workshop: Is a high cash position a healthy sign in a firm? Maybe, but maybe not. Screening for cash-rich stocks and interpreting the results.
April 1996 by John Bajkowski
Stock Analysis Workshop: Is a high cash position a healthy sign in a firm? Maybe, but maybe not. Screening for cash-rich stocks and interpreting the results.
Dollar Cost Averaging vs. Lump-Sum Investing
June 1993 by Richard E. Williams, Peter W. Bacon
Should you invest a lump sum gradually, or all at once? The historical record suggests that investing it all at once may provide higher returns, if you are investing over long time periods—and are willing to accept the risk.
June 1993 by Richard E. Williams, Peter W. Bacon
Should you invest a lump sum gradually, or all at once? The historical record suggests that investing it all at once may provide higher returns, if you are investing over long time periods—and are willing to accept the risk.
Investment Characteristics of Stock Market Winners
September 1989 by Marc Reinganum
What investment attributes characterize successful stocks? A study of 222 stock market "winners" turns up some surprising results.
September 1989 by Marc Reinganum
What investment attributes characterize successful stocks? A study of 222 stock market "winners" turns up some surprising results.