Stock Market Investing with Vershire Research

“Investing is about taking advantage of fear and greed. We like to buy when there’s fear. In other words, when the market is going down, we love to be a buyer. When the market is going up, we love to be a seller” says Phil Town, an investment advisor, hedge fund manager, and two-time NY Times best-selling author.

Vershire Research is a premier research firm tasked with studying and understanding the American stock market. Over the last decade, its body of work has been formidable and trustworthy, making it one of the best stock research sites available. Its work has been called articulate, informed and informative. And the firm is dedicated to being an indispensable and invaluable advisor to the non-specialist general investor, to empower them to understand the hazards and opportunities of the stock market.

Its in-depth research and analysis does well in bull markets, but its forte lies in performing in bear markets, because Vershire emphasizes high-quality, dividend-paying stocks. The best long term dividend stocks hold up well when the market is being battered by a storm of pessimism. The firm strives to make money both in good times and in bad, and it feels that dividends are the key to doing so. Thereby, Vershire beats the market in terms of returns and in terms of risk.

Key features of its research include an explanation about how to invest in stocks. Vershire does not believe that the market is unbeatable. With this premise, Vershire does thorough research and fundamental analysis of the stock market, and explains in detail to investors about how to beat the market. Vershire also explains in the dynamics of the stock market, why the best investors will always be able to beat it, and which techniques yield the biggest bang for the buck. Vershire performs a thorough, bottom-up analysis of over 2000 of the most popular US companies, rating each one of them on their ability to achieve a strong and steady return. Over the years, this approach has paid off; Vershire’s highest-rated stocks have made money seven years out of nine with a cumulative return of over 120%.

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Stock Market Investing with Vershire Research

What To Do With Your Energy Stock Investments

About two years after the panic of 2008-2009, the price of oil (i.e. West Texas Intermediate crude oil) eventually recovered to a little over $100 per barrel. But since June of 2014, it has plummeted and it is currently selling at slightly under $ 50 per barrel. This fall has pushed down the prices of energy stocks, earnings, and dividends. This has compelled many investors to think over what they should now do with their energy investments and where to find the best oil stocks. Consequently, it is very instructive to understand the basics of oil and the oil industry.

Oil is incredibly difficult, time-consuming and costly to find. But once it’s found, it costs practically nothing to pump it from the ground. The price of any good or service that has huge fixed costs but low marginal costs is going to tend to be erratic.

Despite this, when the price of oil is trading near the low end of its price spectrum, there is no shortage of pessimists who believe this state of affairs will continue forever. They ignore the fact that the same forces that pushed oil to swing so dramatically in one direction will eventually make it swing dramatically in the other direction.

We are not saying the price of oil will make a roaring comeback any time soon. In fact, (despite the fact that oil is a “finite” resource) we believe the long-term price of oil will trend downward slightly. Furthermore, we still cannot find many individual oil companies that we like unabashedly.

But we are saying we are more sanguine about what is happening in the oil industry now than we were a few years ago. And these things always take years (not months) to sort out. It is always helpful to keep long-term fundamental principles in mind. And the most important fundamental principle about oil (and energy in general) that we would like individuals to keep in mind is the following.

Oil and energy are the backbone of development. Until a viable, cheap alternative is found, their demand will never end. And when a viable alternative energy is found, the best players in the oil industry will probably find it or at least assist in bringing it to market.

Therefore, you need not bail out of energy stocks. If you haven’t sold them yet, you probably should not sell them now. And keep an eye out for those very good energy stocks that get punished undeservedly just because they are in an industry that is currently out of favor. And if you would like to see the specific oil stocks we are highest on, go to our Best-Stocks-to-Buy-Now page.

What To Do With Your Energy Stock Investments

Ready To Invest in Stocks? Just Read This Before You Do.

Have you convinced yourself to invest in the stock market and have you decided to invest in the best performing stocks for this purpose? Recall the days just prior to March 2009 when the Dow Jones industrial average lost nearly half its value and reached its lowest point in more than a decade. Countless people lost their lifesavings because of that downdraft in the market.

However, this possibility is nothing to fear or dread. Market drops, panics and even routs can be navigated successfully. In fact, if you are investing properly, these seemingly bad times can be turned into opportunities.

For instance, though the ’08 meltdown was massive, many people successfully survived it. The people who did survive were individuals who had a proper investment strategy, and who thought ahead about how they would react if such an eventuality unfolded. It was these people who were able to keep everything in perspective and to not make any rash and foolish decisions.

In very simple terms, go slow, have a sensible and realistic investment plan, and then execute this plan faithfully and skillfully.

Now you may be thinking how you can develop such an investment plan.

Study is the best way to tackle this necessity. Study about the stock market, study about the investment principles, study about the investment process. There is no amount of study that is too much. The more you study, the more knowledge you will have at your disposal to construct a strategy and plan that is tailored to just your needs and preferences.

Start by utilizing the best stock research sites. They will provide much of this information. In addition, they will provide research on such things as the best performing stocks, the stocks that are suitable for long-term investment, and the stocks that are suitable for the short term only.

Now, with all this information, you will make investment decisions like an expert and you will be able to deal with any eventuality in the market.

And, incidentally, you will be amazed how enjoyable the “study” we have been speaking of is once you taste success.

Ready To Invest in Stocks? Just Read This Before You Do.

Why it is Important to Know Your Risk Tolerance Level

Have you been investing your savings in the stock market without knowing your risk tolerance level? If the answer is yes, you are making one of the biggest mistakes of your life, and it might cost you dearly at some point. Do not make any further investments until you can determine how much risk you are able to tolerate.

Many people fail while stock investing not because they do something fundamentally wrong. They fail simply because they panic when the market experiences an inevitable downdraft; they sell at the worst possible time; and by the time calm returns to the market, the market has raced ahead. You could be the best stock picker in the world and this still will not compensate you adequately, if you sell at precisely the wrong time. Determining your risk level is deceptively and critically important. It should be your first step in stock market investing.

You can determine your risk tolerance level yourself by spending some time on the best stock research sites. Such sites will provide you comprehensive information regarding the stock market and regarding making safe investments. And they will provide assistance in determining your risk tolerance level; they will guide you on how much risk to expect and to tolerate.

Once you know your risk tolerance level, it would be helpful to review or reorganize your investment plan. Even if you feel your investment plan is doing well, it is advisable to review and possibly redesign it in light of your new outlook on risk. Even the best performing stocks can disappoint, and it is important to have a sensible plan in place should this happen.

Do not consider this as an attempt to dissuade you from making investments in the stock market. On the contrary, investing will become much more appealing once you are able to modify your approach in such a way that will increase your chance of success.

Why it is Important to Know Your Risk Tolerance Level

Best Stock Research Sites

The internet is a wonderful thing. It has freed investors from having to go to their library and slowly and laboriously sift through musty old books to find information that often had (at best) a glancing relevance to their subject matter of interest.

Now, with a few clicks of the mouse, investors can access reams-worth of information, and then parse and zero in on the most valuable and enlightening information quickly. It is always nice when you can achieve better results with less effort.

But this assumes you know what to look for (garbage in, garbage out). In other words, you still have to know what to look for, or the incredible power of the internet to lead you to the best stock research sites is wasted. When searching for the best stock research sites, look for the following qualities.

  • Look for a site that clearly explains the basic and unchanging nature of the stock market and the investing process.
  • Look for a site that provides essential reference material on how to analyze and search for stocks. Number one on this list is a description of the most important and enlightening financial ratios, what they mean, and how to use them.
  • Look for a site that demonstrates how to use this reference material, and in particular the financial ratios, on actual data.

The last point is the most important. Many investors have a frustratingly difficult time putting into practice suggested financial ratios because the devil is in the details. Exactly how an investor should apply financial ratios makes all the difference. And an actual demonstration is priceless.

A sight that explains, theoretically, how to use financial ratios, but then does not apply these ratios to actual data (in a sense) is leading investors out to the woods and abandoning them there. A website that does this is not providing useful guidance. Theory without practice is worthless.

Because applying these ratios to actual data successfully is so difficult to do, it is often the feature most often absent from stock research sites. Be skeptical of any stock research website that explains, theoretically, the features of the market and the investing process, but does not back that theory up. The best stock research websites eat their own cooking.

Best Stock Research Sites

Identifying the Best Cheap Stocks to Buy Now

Identifying the best cheap stocks to buy now usually means identifying the best value stocks. And the best and simplest way to identify the best value stocks is with the earnings yield.

The earnings yield is a close cousin of the more popular price-to-earnings (P/E) ratio. The earnings yield is simply the inverse of the P/E ratio. It is earnings divided by price, E/P.

The earnings yield is superior to the P/E ratio because (unlike the P/E ratio), if earnings are ever negative or zero, it will not give an undefined reading. Unlike the P/E ratio, the earnings yield is linear by nature, and as a result, it does not give misleadingly high or low numbers.

Furthermore, to generate the earnings yield, instead of using the earnings attributed to the equity, it is usually best to use the earnings attributed to the entire company (i.e. operating earnings) and then divide this number by the value of the entire company (i.e. the enterprise value).

This “enterprise-value-based earnings yield” gives a more accurate and impartial reading of the price of the entire company. And it even gives a more accurate reading of the price of the stock. If you would like to learn how, go to “How to Invest in Stocks” page.

To see more information on the best cheap stocks to buy now and the best value stocks, click the link below.

Best Cheap Stocks to Buy Now

Identifying the Best Cheap Stocks to Buy Now