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A Balance Sheet is one of the fundamental financial statements of a company, also known as the “Statement of Financial Position”. It is comparable to the “Net Worth” of the business and represents a snapshot of the assets, liabilities, and shareholder’s equity at a particular point in time. The Balance Sheet is the most critical… Continue reading
An Income Statement is a financial report that shows how much revenue and expenses a company accrues over a particular period. Also known as the Profit and Loss Statement, the Income Statement is one of the 3 key financial statements. This Statement gives insights into a company’s performance, operations, profitability and management efficiency. TABLE OF… Continue reading
To build a portfolio, you need to have a detailed plan that outlines the types of asset classes and returns necessary to achieve your goals. Once you have developed a strategy, you can allocate your capital across a diversified portfolio and then manage it. Building an investment portfolio has two stages – portfolio construction and… Continue reading
What is High Conviction and Concentrated Investing? High conviction and concentrated investing is a strategy that aims to identify and invest in companies that offer the highest potential for generating Alpha. This approach involves doubling down on an investor’s best ideas with the expectation of achieving above-average returns. A conviction investor holds a firmly held… Continue reading
A core-satellite strategy is a very popular approach to constructing a portfolio. The Investment strategy uses a mix of asset classes to create a diversified balance between long-term and short-term objectives. A core-satellite strategy is a great way to build an investment portfolio that can help to achieve the right risk-adjusted returns by blending both… Continue reading
Active vs Passive investing refers to two different investment strategies used by investors. Active investing involves the practice of individual security selection and implements a “hands-on” approach to investing. The aim is to beat a certain benchmark or look for absolute returns. Passive investing looks to match a certain benchmark and is a “hands-off” approach,… Continue reading
Investment Diversification is a portfolio management strategy centred around risk management. Diversification looks to strike a balance between risk and reward by allocating capital to various asset classes to help reduce volatility within the portfolio. By diversifying a portfolio one can ensure positions that perform poorly are countered with other asset classes that outperform. TABLE… Continue reading
Investment monitoring is an ongoing process of evaluating the fundamentals of underlying businesses and the performance of your investment portfolio. A disciplined approach to portfolio monitoring is essential. It’s not just about logging into your brokerage account and checking stock prices. It’s about knowing what you own. TABLE OF CONTENTS: What is Portfolio Monitoring? Portfolio… Continue reading
Portfolio rebalancing is the process of ensuring the portfolio weightings remain consistent with the asset allocation strategy in your investment plan. Assets/positions can become overweight or underweight based on the movements of the markets. The purpose of rebalancing is to ensure you manage risk in correlation with returns and your overall investment objective. Periodically you… Continue reading
As an investor, it’s important to know when to sell a stock. While there’s plenty of information on buying stocks and investing strategies, there’s not as much coverage on when to sell a stock. Selling a stock is just as important as buying one, yet many investors don’t have a sell strategy in place. TABLE… Continue reading
