From the Archives Articles
Diversification: How Many Stocks Will Suffice?
December 2019 by John K. Ford
An objective analysis of diversification calls into question the conventional wisdom that 15 to 20 stocks suffice, in this article from the January 1990 AAII Journal.
December 2019 by John K. Ford
An objective analysis of diversification calls into question the conventional wisdom that 15 to 20 stocks suffice, in this article from the January 1990 AAII Journal.
Ten Common Mistakes Made by Mutual Fund Investors
November 2019 by Gerald W. Perritt
A pioneer in fund tracking explains how simple errors can lead to lower returns in this article from the April 1988 AAII Journal.
November 2019 by Gerald W. Perritt
A pioneer in fund tracking explains how simple errors can lead to lower returns in this article from the April 1988 AAII Journal.
Retired Investor: Getting Through Difficult Markets
October 2019 by Julie Jason
This popular article from the November 2011 AAII Journal shows how having a goal-oriented skill set is essential for coping with the inevitable turbulent markets during retirement.
October 2019 by Julie Jason
This popular article from the November 2011 AAII Journal shows how having a goal-oriented skill set is essential for coping with the inevitable turbulent markets during retirement.
Keeping Track of Your Portfolio: What to Monitor and When
September 2019 by Maria Crawford Scott
Long-time AAII Journal editor summarizes the minimum monitoring needs for the typical long-term buy-and-hold investor in this essential article from the February 1998 issue.
September 2019 by Maria Crawford Scott
Long-time AAII Journal editor summarizes the minimum monitoring needs for the typical long-term buy-and-hold investor in this essential article from the February 1998 issue.
Outrageous Advertising: A Survival Guide for Investors
August 2019 by Mark Hulbert
Long-time AAII Journal columnist Mark Hulbert shows you how to spot inflated performance claims in this classic article from the September 2001 issue.
August 2019 by Mark Hulbert
Long-time AAII Journal columnist Mark Hulbert shows you how to spot inflated performance claims in this classic article from the September 2001 issue.
Basic Truths About Asset Allocation: A Consensus View Among the Experts
July 2019 by William Reichenstein
This classic article from the October 1996 AAII Journal offers up general asset allocation guidelines for a “typical” investor.
July 2019 by William Reichenstein
This classic article from the October 1996 AAII Journal offers up general asset allocation guidelines for a “typical” investor.
Price-Sales Ratios: A New Tool for Measuring Stock Popularity
June 2019 by Ken Fisher
Ken Fisher proposed a substitute to the price-earnings ratio in the June 1984 AAII Journal, introducing members to the now-common ratio based on price relative to sales.
June 2019 by Ken Fisher
Ken Fisher proposed a substitute to the price-earnings ratio in the June 1984 AAII Journal, introducing members to the now-common ratio based on price relative to sales.
The Sell Decision With Mutual Funds: Knowing When to Walk Away
May 2019 by Albert J. Fredman
There are good reasons for selling a mutual fund, and times when should you stay put.
May 2019 by Albert J. Fredman
There are good reasons for selling a mutual fund, and times when should you stay put.
Investment Basics: A Guide for the Newcomer
April 2019 by Maria Crawford Scott
Individuals who are completely new to investing pose a common question: Where does one start? This archive article from the August 1988 issue of the AAII Journal answers the question with a clear explanation of basic investing concepts.
April 2019 by Maria Crawford Scott
Individuals who are completely new to investing pose a common question: Where does one start? This archive article from the August 1988 issue of the AAII Journal answers the question with a clear explanation of basic investing concepts.
The Index Fund Approach: Tracking the Market
March 2019 by John C. Bogle
This interview originally appeared in the January 1987 AAII Journal, at a time when the index fund concept was in its infancy.
March 2019 by John C. Bogle
This interview originally appeared in the January 1987 AAII Journal, at a time when the index fund concept was in its infancy.
The Position of the Individual Investor
January 2019 by James B. Cloonan
Looking back on the occasion of the AAII Journal's 40th anniversary: This article originally appeared in the second issue of the AAII Journal, March–April 1979, and set the stage for AAII’s mission.
January 2019 by James B. Cloonan
Looking back on the occasion of the AAII Journal's 40th anniversary: This article originally appeared in the second issue of the AAII Journal, March–April 1979, and set the stage for AAII’s mission.
Learning From the Mistakes Made by Legendary Investors
October 2018 by Michael Batnick
Most of the errors made by the best-known investors are attributable to behavioral follies, including 10 common mistakes highlighted here.
October 2018 by Michael Batnick
Most of the errors made by the best-known investors are attributable to behavioral follies, including 10 common mistakes highlighted here.
The Level3 Withdrawal Strategy to Maximize Your Long-Term Wealth
November 2017 by John Bajkowski, James B. Cloonan
Creating a cash bucket with up to four years of expenses allows a retiree to avoid selling stocks during periods of down markets.
November 2017 by John Bajkowski, James B. Cloonan
Creating a cash bucket with up to four years of expenses allows a retiree to avoid selling stocks during periods of down markets.
Six Questions With John Bogle
March 2016 by Charles Rotblut, John C. Bogle
The founder of Vanguard explains how investors can maximize long-term wealth and gives advice for how to get grandchildren interested in investing.
March 2016 by Charles Rotblut, John C. Bogle
The founder of Vanguard explains how investors can maximize long-term wealth and gives advice for how to get grandchildren interested in investing.
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.
Five Common Traits of Successful Value Screens
July 2014 by John Bajkowski
Though investing gurus differ in what they look for in a stock, there are five common traits we see across the AAII value-oriented screens.
July 2014 by John Bajkowski
Though investing gurus differ in what they look for in a stock, there are five common traits we see across the AAII value-oriented screens.
“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.
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.
16 Financial Ratios for Analyzing a Company’s Strengths and Weaknesses
September 2012 by Joe Lan
These 16 ratios enable investors to compare the fiscal strength, profitability and efficiency of two or more companies.
September 2012 by Joe Lan
These 16 ratios enable investors to compare the fiscal strength, profitability and efficiency of two or more companies.
Behavioral Errors Hurt Your Returns
July 2012 by Charles Rotblut, Daniel Kahneman
Individual investors hurt their performance by buying and selling too often, picking the wrong securities to trade, and being overconfident.
July 2012 by Charles Rotblut, Daniel Kahneman
Individual investors hurt their performance by buying and selling too often, picking the wrong securities to trade, and being overconfident.
Introduction to Financial Statement Analysis
January 2012 by Joe Lan
The first article in this popular series explains what the income statement, balance sheet and cash flow statement are and how they are interconnected.
January 2012 by Joe Lan
The first article in this popular series explains what the income statement, balance sheet and cash flow statement are and how they are interconnected.
Retired Investor: Getting Through Difficult Markets
November 2011 by Julie Jason
Having a goal-oriented skill set can help you cope with turbulent markets and move toward a secure retirement.
November 2011 by Julie Jason
Having a goal-oriented skill set can help you cope with turbulent markets and move toward a secure retirement.
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.
Stock Price Movements Are Unpredictable
March 2011 by Charles Rotblut, Burton Malkiel
The author of "A Random Walk Down Wall Street" explains why investors should put at least the core of their portfolios in index funds.
March 2011 by Charles Rotblut, Burton Malkiel
The author of "A Random Walk Down Wall Street" explains why investors should put at least the core of their portfolios in index funds.
Do's and Don'ts of IRA Investing
March 2010 by Robert Carlson
Complicated and restrictive rules can lead to unintended problems. Learn which assets and transactions are allowed and which are not in an IRA.
March 2010 by Robert Carlson
Complicated and restrictive rules can lead to unintended problems. Learn which assets and transactions are allowed and which are not in an IRA.
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.
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.
The Big Picture: How to Decipher What the Market Is Saying
April 2004 by William J. O'Neil
A look at some key market indicators that provide a lens into how the market is behaving—and what it is saying right now.
April 2004 by William J. O'Neil
A look at some key market indicators that provide a lens into how the market is behaving—and what it is saying right now.
The Big Picture: How to Decipher What the Market Is Saying
April 2004 by William J. O'Neil
A look at some key market indicators that provide a lens into how the market is behaving—and what it is saying right now.
April 2004 by William J. O'Neil
A look at some key market indicators that provide a lens into how the market is behaving—and what it is saying right now.
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.
Bond Investing Basics: Why Bond Prices Go Up and Down
November 2001 by Annette Thau
Bonds: Since the late 1970s, changes in the interest rate environment have become the greatest single determinant of bond returns, and managing interest rate risk has become the most critical variable in the management of bond portfolios.
November 2001 by Annette Thau
Bonds: Since the late 1970s, changes in the interest rate environment have become the greatest single determinant of bond returns, and managing interest rate risk has become the most critical variable in the management of bond portfolios.
Outrageous Advertising: A Survival Guide for Investors
September 2001 by Mark Hulbert
Most individuals wouldn’t give the time of day to a used car salesman who claimed that an old car had only been driven to church on Sundays. Yet many investors not only gave the time of day, but actually paid good money to an investment newsletter that claimed that in 13 years’ time it had turned $10,000 into more than $40 million.
September 2001 by Mark Hulbert
Most individuals wouldn’t give the time of day to a used car salesman who claimed that an old car had only been driven to church on Sundays. Yet many investors not only gave the time of day, but actually paid good money to an investment newsletter that claimed that in 13 years’ time it had turned $10,000 into more than $40 million.
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.
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.
Valuing Growth Stocks: Revisiting the Nifty Fifty
October 1998 by Jeremy Siegel
The lofty levels reached by the Nifty Fifty in the early ’70s is often held up as an example of unwarranted speculation. But a glance in the rearview mirror indicates investors were right to predict that the growth of these firms would eventually justify their prices.
October 1998 by Jeremy Siegel
The lofty levels reached by the Nifty Fifty in the early ’70s is often held up as an example of unwarranted speculation. But a glance in the rearview mirror indicates investors were right to predict that the growth of these firms would eventually justify their prices.
Keeping Track of Your Portfolio: What to Monitor and When
February 1998 by Maria Crawford Scott
February 1998 by Maria Crawford Scott
Setting up a reasonable and workable investment plan is one of the most important decisions an investor can make. But once that decision is made, an investor’s work is only half done.
Basic Truths About Asset Allocation: A Consensus View Among the Experts
October 1996 by William Reichenstein
There is a surprising amount of agreement among many investment professionals concerning the appropriate asset mix for the “typical” investor.
October 1996 by William Reichenstein
There is a surprising amount of agreement among many investment professionals concerning the appropriate asset mix for the “typical” investor.
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.
Equity vs. Fixed-Income: Return Patterns Since 1802
June 1992 by Jeremy Siegel
HIstorical return data since 1926 indicate that stocks produce higher returns than bonds even after adjusting for risk. But does the pattern hold for longer time periods? Stock and bond returns since 1802.
June 1992 by Jeremy Siegel
HIstorical return data since 1926 indicate that stocks produce higher returns than bonds even after adjusting for risk. But does the pattern hold for longer time periods? Stock and bond returns since 1802.
The Costs of Panic-Selling in Stock Market Investing
March 1991 by John A. Vann
One of the hardest things to do as an investor is to stand pat as the market falls precipitously. Learn the pitfalls of such actions and statistics to steel you from the temptation during the next market downturn.
March 1991 by John A. Vann
One of the hardest things to do as an investor is to stand pat as the market falls precipitously. Learn the pitfalls of such actions and statistics to steel you from the temptation during the next market downturn.
A Fundamental Look at Technical Analysis
May 1990 by Al Frank
A fundamentalist’s approach to technical analysis: A practical approach to evaluating and interpreting advances and declines in the stock market.
May 1990 by Al Frank
A fundamentalist’s approach to technical analysis: A practical approach to evaluating and interpreting advances and declines in the stock market.
Diversification: How Many Stocks Will Suffice?
January 1990 by John K. Ford
Most individual investors know by intuition that diversification is beneficial. But how much diversification is necessary? A different approach to the question provides some interesting results.
January 1990 by John K. Ford
Most individual investors know by intuition that diversification is beneficial. But how much diversification is necessary? A different approach to the question provides some interesting results.
When Treasury Bills Are Riskier Than Common Stocks
August 1989 by William Reichenstein
Traditional risk measures do not cover all aspects of risk. Treasury bills, for instance, can be riskier than common stocks for longer holding periods. Why? The reason is explained by the concept of relative risk.
August 1989 by William Reichenstein
Traditional risk measures do not cover all aspects of risk. Treasury bills, for instance, can be riskier than common stocks for longer holding periods. Why? The reason is explained by the concept of relative risk.
Investment Basics: A Guide for the Newcomer
August 1988 by Maria Crawford Scott
Individuals who are completely new to investing pose a common question: Where does one start? The best place to start is with basic concepts. A review of the basics, and where to go from there.
August 1988 by Maria Crawford Scott
Individuals who are completely new to investing pose a common question: Where does one start? The best place to start is with basic concepts. A review of the basics, and where to go from there.
Shareholders Must Reclaim Their Corporate Stake
July 1988 by T. Boone Pickens, Guy W. Courtney
As corporate owners, shareholders bear the financial risks for a company’s success or failure. But the current system limits their say in running a firm. In this commentary, two shareholders’ rights advocates discuss why corporate democracy should be restored to the American enterprise system.
July 1988 by T. Boone Pickens, Guy W. Courtney
As corporate owners, shareholders bear the financial risks for a company’s success or failure. But the current system limits their say in running a firm. In this commentary, two shareholders’ rights advocates discuss why corporate democracy should be restored to the American enterprise system.
Ten Common Mistakes Made by Mutual Fund Investors
April 1988 by Gerald W. Perritt
Lower than average returns for individuals investing in mutual funds can frequently be traced to a few common errors. What are they? An explanation of the 10 most common mistakes made by mutual fund investors.
April 1988 by Gerald W. Perritt
Lower than average returns for individuals investing in mutual funds can frequently be traced to a few common errors. What are they? An explanation of the 10 most common mistakes made by mutual fund investors.
Timing Indicators: The Bond-Stock Yield
April 1986 by John Markese
This “Throwback Thursday” article comes from AAII’s extensive archives spanning four decades. While these articles may have been written long ago, the investment topics they cover are just as relevant today as they were when they were written. We are pleased to reintroduce them to a new audience.
April 1986 by John Markese
This “Throwback Thursday” article comes from AAII’s extensive archives spanning four decades. While these articles may have been written long ago, the investment topics they cover are just as relevant today as they were when they were written. We are pleased to reintroduce them to a new audience.
Blending Conservative, Growth and Cyclical Stocks Into a Winning Strategy
September 1985 by Peter Lynch
Beating the market with a $2.5 billion portfolio, by the manager of Fidelity's Magellan Fund.
September 1985 by Peter Lynch
Beating the market with a $2.5 billion portfolio, by the manager of Fidelity's Magellan Fund.
Price-Sales Ratios: A New Tool for Measuring Stock Popularity
June 1984 by Ken Fisher
Price-earnings (P/E) ratios are frequently used as a “popularity” gauge. But is this the best measure? One analyst argues that earnings are distorted by such things as accounting assumptions. His answer: Use sales instead.
June 1984 by Ken Fisher
Price-earnings (P/E) ratios are frequently used as a “popularity” gauge. But is this the best measure? One analyst argues that earnings are distorted by such things as accounting assumptions. His answer: Use sales instead.
A New Psychological Perspective on Investor Decision Making
September 1983 by Harvey A. Pines
Harvey Pines, Ph.D., discusses how social and emotional factors and judgemental biases influence decision-making, particularly in regard to investments.
September 1983 by Harvey A. Pines
Harvey Pines, Ph.D., discusses how social and emotional factors and judgemental biases influence decision-making, particularly in regard to investments.
Tilting the Investment Odds in Your Favor
March 1983 by Dick Davis
In this article, Dick Davis reflects back upon lessons learned during a career as a financial reporter which spans nearly a quarter century and gives the stock market investor a set of rules which, if followed, should increase overall long-term investment performance.
March 1983 by Dick Davis
In this article, Dick Davis reflects back upon lessons learned during a career as a financial reporter which spans nearly a quarter century and gives the stock market investor a set of rules which, if followed, should increase overall long-term investment performance.