Chroma Investing

Value Investing for beginning & small time investors and the value investing strategies of Graham & Klarman

Beware of Brokerage Costs

The more money you spend earning your money, the less you keep. This includes premium services, taxes, transaction costs, brokerage fees. Anything that keeps your dollars from compounding in the future. In general this concept is pretty easy to grasp but in particular small money and beginning investors need to know that there is a difference between paying $10/trade and $5/trade.

Beginning Investor Terms – Penny Stocks

Penny stocks are really any stock whose price per share is under a buck. The traditional wisdom is that Penny stocks are too be avoided at all costs. They are often volatile and illiquid, that is not traded in sufficient volume to enable easy entry into or out of a position in that equity.

A possible Net Net stock – but not for Me

I want to highlight an investment idea that Jae over at Old School Value posted: Insmed Inc. (INSM). I decided rather than ignore investment ideas that I don’t buy into, I would mention them and let you the reader decide if it interests you. Check out his evaluation here of INSM. He makes a good case for the stock. Some of you may want to invest in it. Jae is a very smart guy who has had lots of good advice, you could do worse than follow his lead.

Value Investors Club

Valuehuntr one of the blogs that we follow has been accepted in to the Value Investors club. That is pretty cool. The value Investor’s club was started by the genius investor and writer Joel Greenblatt.

Small Money Investors – Don’t Invest like Warren Buffett

When I say don’t invest like Warren Buffett, I mean don’t invest like Buffett does now. We can look at this in two parts.

Beginning Investor Terms – Price/Book ratio

It has been a couple of weeks since we had our last Beginning Investor Terms post, so lets get back in the saddle.

The Price to Book ratio (P/B) is a classic Value oriented term that is vital to understand, for understanding most schools of value investing. The equation is PB = Price per share/book value per share. Or an alternate is Market Cap/Book Value.

What not to believe for Beginning Investors

A lot of crap has become accepted in financial and academic circles. Some ideas also end up in investing circles and they are regularly recycled like the theory is fact. Sometimes the has already been discredited or is logically foolish, but they get pushed on the unsuspecting anyway. Remember if an idea seems illogical, it probably is. Let’s look at a couple these ideas and how they can help us anyway.

Searching for a Good Value Stock

I spent the better part of this last weekend researching ideas for investing. I know I have been on a tear about the state of the stock market and the risks moving forward, but I didn’t think after fifteen hours of research I would come away empty handed. But I did.

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