Monthly Archives: September 2014

How To Tell When Stocks Go On Sale

Been going through the old articles for Mr. Money Mustache, and found this little gem I wanted to post as a reminder.

How to tell when the stock market is on sale.

The whole premise is that the average weighted P/E ratio of ALL S&P 500 companies has been 16.4. You use this number as a buy signal for when an S&P 500 index or even individual stocks fall below this price. You can possibly use it as a sale signal when stocks go above this ratio.

Granted this is one single number to use in a much more thorough stock analysis, but its certainly one of the better ones to use.

As a side note, I started following Mr. Money Mustache after he was mentioned on ERE (Early Retirement Extreme). I would suggest following both of their blogs and forums if you are interested in being your own best financial adviser.

Learning to Program: Getting Started

This has been a big goal of mine for a long time. I have put it off and put it off. I even tried to go back to college to get an IT degree and got talked into pursuing an MBA instead. As of right now, I still don’t know if that was the right choice or not.

In any case, I found three very good resources to get started in my self-taught course in programming…

1. Learn to Program by Chris Pine
2. Codecademy
3. W3Schools

I am sure more will pop up along the way. As usual, with other projects going on I am sure I will make slow progress here, but it is still one of the higher priorities for learning new things in my life.

Dividend Growth Investing

I think having dividend stocks is one of the most underrated ways to become financially independent at an early age. Or make your retirement in your 60’s much more successful.

I really enjoyed a recent post by dividendmantra.com and specifically enjoyed this quote…

“There’s thousands of publicly traded stocks out there. But, according to David Fish’s Dividend Champions, Contenders, and Challengers document, there’s only 543 businesses out there that have been able to raise their dividends for at least five consecutive years. Of that, only 106 have raised their dividend for 25 or more consecutive years. So you’re taking thousands of stocks out there and condensing that down into a few hundred or so. That makes research much more manageable.” Source: Dividend Mantra

I like this idea. Some people spend their entire lifetimes learning stocks. How to pick them, how to be a professional investor. It really is true however that the “proof is in the pudding”. A company that can pay dividends year after year is obviously being profitable year after year and it is a wise investment.

For instance, Cola-Cola has been around a long time, and Warren Buffet himself has mentioned that Berkshire Hathaway owns a large portion of Cola-Cola shares. Now you obviously need to do your own research, but this is the essence of value investing. Cola-Cola stock has a high value to it, and if you can buy the stock when it is relatively cheap because of some market movement, then you are getting it at a steal. On the flip side, even if you buy it at a relatively expensive price it is probably still worth it because it will still be valuable in the long run.

Back in Da Burgh!!!

Hi all! Its been awhile since Ive posted. This past year has been amazing! I sold my house in Colorado. Traveled all over the U.S. and finally moved back to Pittsburgh! I’m happy to be back around my family again. Now it’s just a matter of settling in and figuring out exactly what I’m going to do, and where I am going to live.

Currently I am working on getting my real estate license. I have always wanted to do this since I was a teenager and there is no time like the present. From my understanding the road to becoming a successful real estate agent takes a lot of time and a lot of money. Once you develop a sales pipeline and keep it filled it is a pretty nice gig. However, it does take a lot of energy to build the momentum to get there.

I ordered my books and signed up for an online class through Real Estate Express. A few people suggested getting my license in an actual class so I could network with people and keep it interesting, but I am pretty confident that I can just do it online.

In fact, with so much of the real estate sales process happening online, it probably does me good to study and research as I go rather then be stuck in a class listening to a lecture.

Besides that I have a bunch of weddings to go to or be in then the next couple of months. Tom, Mandy, Courtney, and Chelsea are all getting married soon. It’s crazy!

Lastly, I do want to mention I bought another new lens. A Nikon 10-24mm wide angle for real estate photography and also for landscape photography. Here is to taking it to the next level!!!