Archives June 2015

Introducing The Shariah Portfolios

Last update on June 29, 2015.

Koran

 

A few Muslim readers have asked for Shariah compliant portfolios in the past. It took me longer than I thought, but I’m happy to report that the Shariah portfolios are now available to MoneyGeek’s regular members.

For those of you who don’t know, the Muslim religious law, called Shariah law, forbids participating in certain types of investment activities. Such activities include the following:

  • Receipt and payment of interest
  • Buying and selling of prohibited goods, such as alcohol, tobacco and pornography
  • Transferring of risk (e.g. insurance)
  • Gambling of any form

In practice, that means that a Shariah compliant (a ...

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Review of The RAFI Index Stock Picking Strategy

Last update on June 22, 2015.

Factory

 

ETFs are great. As I’ve explained in my free book, I think they’re a much better way of investing your money than by investing in higher cost mutual funds. This has been particularly true for ETFs that invest in stocks.

However, no financial product is perfect, and if there’s one criticism of the traditional type of stock ETF, it is in its failure to distinguish between cheap and expensive stocks, even though buying cheap stocks has been proven to boost returns.

The traditional stock ETF weights each stock according to the market cap (i.e. the size) of their ...

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Getting Started in Value Investing (Book Review)

Last update on July 10, 2015.

Summary

Getting Started in Value Investing is a book written by Charles S. Mizrahi, Managing Partner of CGM Partners Fund LP and Editor of Hidden Value Alert, a value-oriented advisory newsletter.

It’s written with the beginning investor in mind and aims to provide readers a thorough introduction to value investing. Each of the chapters explores a different issue or principle related to the subject, and ultimately attempts to accomplish a specific task: this can be debunking some of value investing’s misconceptions; explaining its basic concepts and history; demonstrating how to apply it successfully; and teaching how to avoid common mistakes ...

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How To Value A Company Using The Residual Income Method

Last update on June 15, 2015.

Bank sign

 

On the third Monday of each month, I’ll comment on the performance of the premium portfolios and provide some additional analysis related to individual stocks. In this article, I will use the example of a regional bank to illustrate how to value a company using a method called the Residual Income method.

 

Premium Portfolio News

The performance of MoneyGeek's premium portfolios for the month of May 2015 were as follows:

 May 2015Last 12 MonthsSince Apr 2013
Moderately Aggressive -1.5% +6.2% +28.5%
Very Aggressive -4.6% -8.4% +13.4%
Extremely Aggressive ...

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My TFSA Update May 2015 - Lessons From Long Term Capital Management

Last update on June 8, 2015.

Long term capital management performance

 

In this series, I (Jin Choi) talk about my goal of reaching $1 million in my TFSA account by 2033. In addition, I’ll use the example of a former hedge fund (Long Term Capital Management) to explain how stock prices can become very irrational. For an easy explanation of the TFSA, please read our free book.

 

May Results: Down 6.2%

At the end of May, I had $63,639 in my TFSA account, which is down by $3,152 since April. However, I had also contributed $1,000 into my account in May, so the real loss ...

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The Essays of Warren Buffett (Book Review)

Last update on June 4, 2015.

If you’ve ever wanted to understand and appreciate Warren Buffett’s investment philosophy—and what makes him the brilliant investor that he is—you may want to listen to the Oracle himself, and pick up what he considers his favorite “Buffett book.”1

 

Summary Analysis

The Essays of Warren Buffett: Lessons for Corporate America is a collection of excerpts from Buffett’s annual letters to the shareholders of Berkshire Hathaway. For many years, these letters have distilled—and continue to distill—the invaluable insights shaping the great investor’s personal approach, and have, collectively, constituted what is considered to be the definitive source for Buffett’s unique ...

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Is The Slide In Bond Prices Just Beginning?

Last update on July 6, 2015.

Money under mattress

"If I had an easy way, and a non-risk way, of shorting a whole lot of 20- or 30-year bonds, I’d do it." - Warren Buffett

At the beginning of every month, I brief members on how MoneyGeek's regular portfolios have performed and comment on the state of the financial markets. In this update, I talk about why bond prices have been going down recently.

 

Performance of Regular Portfolios

The performance of MoneyGeek's regular portfolios for the month of May 2015 were as below:

 May 2015Last 12 MonthsSince Apr 2013
Slightly Aggressive  +2.8 ...

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