This post focuses on a technique to attain medium risk in your portfolio with a value investing approach. “Medium risk” seems to be an elusive term, which was well illustrated in the bear market of 2008. In Nassim Taleb book he shares his brilliant “barbell” investing strategy that comes as close to the essence of a medium [...]

The Madoff scandal may have you asking: What exactly is a Ponzi scheme?
The essence of a Ponzi scheme is better known today as a pyramid scheme.
In 1920, a Boston investment broker named Charles Ponzi told investors that he could earn them 50% returns on a 45 day bond, from his mysterious investing technique. Within the 45 days, [...]

“I really think very highly of him, people make mistakes,” wrote a Madoff confidant and NYSE broker. At a party over the weekend I met a nice girl from Boston University, and I forgot to ask for her number when I left. THAT was a mistake. 
Bernard Madoff, former chairmain of the board at the NASDAQ [...]

In October, Verizon Communications (VZ) raised their quarterly dividend 7% to $.46 a share from $.43 cents, with a dividend yield at today’s price now 5.67%. Verizon should be able to defend its dividend in the next 12 months. The communications company is estimated to grow EPS 4% in the next four quarters, a slower [...]

This parody on the big three bailout ad cracked me up, so I thought I would share..

In Security Analysis, Benjamin Graham emphasizes the importance of not only focusing on a firm’s potential and accounting statements, but to also pay great attention to the business cycle. Individual investors should research and create their own one year outlook for the market.
Almost any security may be a sound purchase at some real or prospective [...]

After a year where we felt housing prices drop precipitously, the previous decade of strong real estate appreciation seems forgone. The credit crunch has drained the pool of home buyers to mostly families with impressive credit scores and the ability to make large down payments (as it should have been for the past two decades!). 
While [...]