Investments Knowledge or Resources

The process of investing can be defined as distributing money in ways that lead to a return, usually in monetary value. For the beginner, learn how to save money and make smart investment decisions. For the investor, expand your knowledge on investments and increase your ROI.

Smart Diversification: 3 Steps to Take With Your Peer to Peer Portfolio

In my last post on Peer to Peer (P2P) Lending, I spoke about how we need to diversify, but we run into a problem if we try to just invest in everything. We have way too many P2P marketplaces, 106 to be exact, and so it is impractical to buy the whole sector. Even if we had the money to diversify across all the loans available in all the platforms, it would not be a wise choice as some loans are just too risky. Instead, we are constantly [...]

Smart Diversification: 3 Steps to Take With Your Peer to Peer Portfolio2019-09-12T05:28:39-06:00

P2P Lending Platforms: My Experience With Peer to Peer Lending

As our domestic stock market has become expensive, we continue to look for something better. One area HIT revisited in 2018 was the category of fixed income. The high-level overview of an asset class worth more than $247 trillion has since led me to focus on the specific sub-category of peer to peer lending. To my surprise, my sister showed a keen interest in the topic and as I started to dig, I found her in the trenches alongside me. We have since teamed up and researched over [...]

P2P Lending Platforms: My Experience With Peer to Peer Lending2019-09-12T05:15:25-06:00

The Mailbag: CAPE Ratio, Hard Money, and Bridge Loans

One of the many benefits of writing a blog is the challenge of organizing your thoughts and having them questioned. It’s initially scary to put it out there, but as time passes there is a subtle switch from scary to educational. Our interactions have developed into a mutually beneficial relationship of learning. We rarely all agree on financial topics like the efficient market, behavioral finance, and saving till you are blue in the face.  However, your rebuttals, comments, and suggestions expand and test my own understanding, which in [...]

The Mailbag: CAPE Ratio, Hard Money, and Bridge Loans2019-03-01T15:53:40-07:00

16 Fixed Income Classes Ranked Based On Returns

I loaded up our HIT Investments fire box and got the research train rolling. Aggregating data from 14 fixed income classes, ranging from international high yield bonds to domestic short-term treasuries, was like shoveling coal: difficult, but necessary.

16 Fixed Income Classes Ranked Based On Returns2019-03-01T16:01:37-07:00

Peer to Peer Lending – The Investor’s View

Financial innovation has opened a new and more efficient avenue to connect investors with borrowers. One of the technologies evolving since the mid 2000's has been the Peer to Peer (P2P) marketplace. Since their inception a decade ago they have grown from $0 to $54 Billion.

Peer to Peer Lending – The Investor’s View2019-03-25T16:18:00-06:00

The Story of the T-Bill: Safe Investments Often Lead to Real Losses

When studying finance in preparation for the Series 65 exam there was an emphasis on specific investment objectives. The "safest" investment objective was "Preservation of Capital" and its primary goal was to prevent loss.  Preservation of capital investments includes Treasury Bills (T-Bill), certificates of deposit (CD), savings accounts, and money market accounts (MMA). These holdings are classified as the “safest” investments and are often insured against absolute loss.  In industry lingo, they generate a “risk-free” rate of return.  But before we take it as so, and solidify the [...]

The Story of the T-Bill: Safe Investments Often Lead to Real Losses2019-03-01T16:10:00-07:00

33 Countries Ranked by Value

Benjamin Graham, the forefather of fundamental value investing once taught Warren Buffett, “Price is what you pay. Value is what you get”. Since Benjamin Graham wrote Security Analysis in the 1930’s, more academics, quantitative analysts, and Warren Buffett, have made strong cases that value investing outperforms the general market over the long term. In one example, Buffett’s firm Berkshire Hathaway employs value investing, and their track record outperformed the S&P 500 by 1,586,929% over the last 51 years. (1964-2015 Berkshire Hathaway gained 1,598,284% while the S&P 500 gained [...]

33 Countries Ranked by Value2019-03-25T16:05:50-06:00

Value vs. Price: The Difference is Very Real

Our natural human condition is to know and communicate the price of a product while ignoring the product’s value. Oscar Wilde once said “Nowadays people know the price of everything and value of nothing.” This is a fundamental flaw in how we think and it has played a part in strengthening the consumerism culture we live in today. An everyday example of a marketer taking advantage of this flaw is the marking up of an item by 50% to only then place it on sale for an equivalent [...]

Value vs. Price: The Difference is Very Real2019-03-25T15:56:58-06:00

5 Best Oil and Gas Stocks to Contemplate While Oil Price is Low

Global oil production has been outpacing demand for over two years. This oversupply has pushed oil prices to lows not seen in more than 10 years, so it's a good time to start contemplating investments in oil and gas stocks. For consumers, this is a welcomed reduction in fuel prices. For independent producers, the price decline is causing extreme pain. According to Haynes and Boone, 42 energy companies filed for bankruptcy in 2015 and Deloitte believes 35% of the remaining energy companies are at risk of declaring bankruptcy [...]

5 Best Oil and Gas Stocks to Contemplate While Oil Price is Low2019-03-25T15:52:26-06:00

Stock Buyback – A Dividend Alternative

In the last newsletter we discussed a few of the inherent consequences of dividends. This article compares the dividend to one of its alternatives, the stock buyback. Stock buybacks, otherwise known as share repurchases, occur when a business purchases shares of its outstanding stock from the shareholders. Importantly, the fundamental value of the business does not change. The result is an increase in the ownership percentage of each remaining share. For example, if a company has 100 shares and is worth $100, each share is worth $1 and [...]

Stock Buyback – A Dividend Alternative2019-03-03T13:40:52-07:00