Share Buyback: Three Things to Watch Out For

Share Buyback: Three Things to Watch Out For

What does it mean when a company announces share buybacks?

Is it a good thing or bad thing? Should you rejoice or worry about it?

The short answer is that share buybacks are good when they benefit the shareholder and bad when they don’t.

The next question is, when are they and aren’t they beneficial?

But first, let’s define share buybacks. What are they exactly?

It’s the company buying back its own shares from the stock market so they are no longer in circulation.

Why do companies do it?

It’s a way of rewarding shareholders. The consequence of share buybacks is that the share price usually goes up.

How’s that?

Imagine you have a cake that needs to be divided into ten pieces.

Let’s say you redivide it and split the same cake into eight pieces instead of ten.

To be exact: We go back to the original size of the cake, dividing the same amount into eight pieces instead of 10.

Now each piece is larger. Therefore, each piece should cost more.

Then surely, it must by definition be a good thing when a company buys its own shares back, right?

No. Not necessarily.

You need to look at it in a larger context and ask a series of questions.

You have to ask:

Is the Company Profitable?

If the company isn’t profitable, it’s a bad idea for them to start buying back their shares.

Running on a deficit is like having a hole in the bucket, and they need to focus on closing that hole before doling out money to shareholders.

Share buybacks are a way to distribute the year’s gains to shareholders. It’s an alternative to dividends. They shouldn’t distribute winnings if they don’t have any winnings. It’s that simple.

If you discover that a company buys back its own shares during a period when they are running at a loss, you should sell that company’s stocks (or avoid investing in them).

It’s a sign of poor management.

Do They Owe a Lot of Money?

If the company is over its head in debt, management shouldn’t buy back shares.

When they buy shares back, if they do so on borrowed money, they increase the debt burden.

They should instead spend that money on paying down debt.

What’s the problem with having a high debt burden?

Companies with a lot of debt are at greater risk of going bankrupt in a downturn or crisis than companies with lower debt.

It’s not much different from a person with a lot of personal debt. If the person gets fired, they’re at a greater risk of not being able to pay the bills and going into foreclosure than a person with low or no debt.

How much debt is too much? That’s a great question too.

My rule of thumb is that I only invest in companies that can pay off their long term debt in three years with free cash flow.

Is the Stock Expensive or Cheap?

If the shares are expensive relative to the value of the firm, it doesn’t make sense to buy back shares.

Why not?

Because they’ll pay too much for the stock. They’d be throwing money out the window.

A share buyback is just like an investment.

Let’s say that a company is actually worth 100 USD per share. If they buy shares back at 200 USD per share, they throw 100 USD out the window every time they buy one share back.

Remember that it’s also your money that the management mismanages. As an investor, you are a co-owner of the company. The management is just a deputy.

Why do stock investors ignore badly managed buybacks?

Many stock investors believe that the stock market is efficient, and if you believe that, it follows that any share price is therefore a reasonable level to buy the shares at.

In my e-book Free Yourself, I explain why the stock market isn’t efficient. You can download it here.

The Pros and Cons of Share Buybacks

Warren Buffett loves buybacks – provided they’re done right. His company Berkshire Hathaway does it regularly.

If it’s an alternative to dividends, what are the benefits of buying shares back relative to dividends? Why is Warren Buffett so fond of it?

The answer is simple: tax benefits.

When you receive dividends, you have to pay taxes. When the company buys back its own shares and the stock price goes up, you don’t pay capital gains tax (provided, of course, that you don’t sell the share yet).

The effects of compounding are hurt with dividends. In other words, your money can better enjoy the power of compounding with stock buybacks.

So what are the disadvantages of buybacks?

They only occur if the repurchase is done on a “false” basis, like in the three points above (done by unprofitable businesses with high debt burden and that are overvalued on the stock market).

Why does it even happen that management buys back shares even though the foundation isn’t in place?

It happens because the management has an interest in getting the stock price pumped up.

Many companies reward top management according to the performance of the stock price, e.g. with stock options and various bonuses depending on the stock performance.

They’ll only get paid if the stock reaches a certain level.

This means that many executives tend to make stock repurchases out of self-interest to get their bonus pay, and sometimes their selfish interests are so great that they ignore common sense.

In conclusion, there’s really no way around it. When a company reports share buybacks, you have to check if the company is profitable, has a reasonable level of debt, and whether it’s over or undervalued on the stock market.

You can learn much more in my free e-book Free Yourself right here

How To Tell If You’re Addicted To Stocks

How To Tell If You’re Addicted To Stocks

This blog post is for fun – and then again, it’s dead serious. 

I remember a wonderful spring day when a friend I hadn’t seen for years was visiting Copenhagen. We had studied together in New York almost two decades earlier. 

We were sitting at a winery in Copenhagen, drinking a glass of Chardonnay before dinner while waiting for some more people to join us.

At a moment when she was on the phone to explain our exact wine-drinking location, I discreetly logged into a stock market app on my phone.

“You’re checking the stock market,” she said when she got off the phone, and she sounded completely appalled.

At that moment, I felt like one of the crazy characters in a Woody Allen movie. I could see myself through her eyes. I was like the crazy stockbroker who could only do two things: cheat on his wife and yell “sell” into a phone.

Well. Maybe it was a bit odd to check the stock market. We hadn’t seen each other for so long. She had a lot to tell me. New country, new boyfriend, new career, and a baby. We had to catch up on a decade or more. 

I wanted to enjoy the Chardonnay and the warm spring day, and I wanted to hear all about her adventures. But the market was falling, and that opened the possibility for some interesting option trades that I had been waiting to do.

If only I could sneak away for 15 minutes…

It’s so tempting to check on the stocks, and once you check, you can get sucked in.

Have you ever felt that way? Have you ever checked on your stocks at an inappropriate moment? 

Why does this even happen?

I’ll tell you why. When you check your stocks, you get a dopamine kick.

It’s similar to what happens when you check your social media, but much stronger, I would argue.

Seeing your stocks go up affects your primitive brain more than seeing someone like your post.

Some of us even get a kick when we see the stocks go down, because we know that’s when we make money. 

The line between checking and getting addicted to checking is a blurry line. 

How do you know that you’ve become addicted? Well, here are five signs to look for…

1. You Check the Market Right When the Exchange Opens – Every Day 

If you’re knocking at Wall Street’s gate even before it’s really open, and doing that every day, it’s a sign. 

It’s fine to check the stock market prices, but you should also be able to tolerate forgetting about it occasionally or doing it later. 

2. You Check Your Portfolio Even on the Weekends 

You checked the portfolio Friday at market close, and you know the market is closed on Saturdays and Sundays, but it’s just so nice to see those numbers on the screen. All those wonderful green numbers – or even the red ones. 

You’re actually looking forward to Monday so the digits start moving around again.

3. You Think There Are Too Many Official Holidays

You get annoyed that the market is closed on holidays, and you’d rather be at work than at home with the stock market closed. You just won’t verbalize it.

Speaking of work, you’ll check the stocks at work too. That’s when the market is open, so you have to right?

4. Life Outside the Trading Platform Feels Dull

You find it hard to focus on reading a book or watching a show.

Even social media seems boring compared with the numbers going red and green.

Some social events feel like a bore too. You’d rather get back to making money.

5. You Check Stocks In Bathroom  

Oh, I’ve been there. Remember FAANG stocks getting crushed in late 2018? 

I tried hiding from my kids on Christmas Eve so I could buy some Apple stocks that suddenly reached my target price.

I didn’t succeed because my kids were banging on the door and being impatient about Christmas and presents.

After that I promised myself NEVER to do that again.

The Road To Recovery

Did you recognize any of these signs?

If so, then you need rehab.

You have to learn that you can make sound investment decisions without constantly getting a stock market fix. 

In fact, your investment decisions will become sounder if you take a step back.

So how do you take a step back?

1. Enter Your Trades as Limit Orders in the Off Hours

You don’t have to enter your trades when the market is open.

In fact, it’s better not to, because all those numbers running up and down sends a signal to your brain that you should act on it.

You’ll be a better investor if you’re less updated. That’s something you’ll have to experience over time to know, but for now you just have to trust me.

2. Go Cold Turkey For 30 Days

Just like with a sugar addiction, you need to reboot yourself by stopping the actual intake for a while.

When I say cold turkey, I mean that you shouldn’t check the market at all in 30 days – not even when it’s closed.

You have to learn that nothing will implode if you’re not updated for 30 days. 

During those 30 days, you can arrange for someone to let you know if any of your positions fall more than 20 percent or if the market crashes.

After going cold turkey, you can easily go a day without checking. 

3. Force Yourself Into Another Neutral Addiction

Maybe now is the time to watch that Netflix series everyone is talking about? 

There are three kinds of addictions: negative, positive, and neutral. 

A negative addiction takes a toll on your health, your finances, or your relationships. 

This would be something like smoking, gambling, or having extramarital affairs.

A neutral addiction doesn’t harm anyone, but it doesn’t do any good either. This could be watching Netflix or checking your social media accounts. 

A positive addiction would be running or going to the gym. 

If you could find a positive addiction to replace your stock market fixation, that would be perfect, but it might not be realistic to replace that dopamin kick with chewing veggies.

So the next best thing is a neutral, pleasurable choice like a Netflix series. 

Afterwards, you can always take a cold turkey break from Netflix because you’ll have strengthened your willpower and ability to abstain. 

If you want to learn about solving intellectual puzzles and investing with a strategy, you can read my e-book Free Yourself here

Five Emotional Advantages to Investing in Stocks

Five Emotional Advantages to Investing in Stocks

When talking about the advantages of investing in stocks, most people talk about financial profit and returns, but cool cash is far from the only thing you gain when you invest. 

 A lot of people have a specific financial goal.

Maybe they invest to be able to retire comfortably. Maybe they invest to be able to afford a certain type of home at some point. Or maybe they invest to become financially independent.

Whatever the specific goal, there is probably another reason why you invest: the emotions you will experience when you reach your goal.

It might be a feeling of security knowing that you can retire comfortably. It might be a feeling of having more choices. Or it might be a feeling of having more control over your life.

The good news is that those feelings will begin to emerge a long time before you reach your financial goal.

The feelings will begin to settle the moment you take charge and begin to invest in a serious way.

Obviously, the feelings you experience will depend on how you invest.

If you invest in a way that resembles gambling in a casino, the feelings of stress might deepen.

Investing based on some random thing you pick up listening to a podcast or reading a post in a Facebook group might turn your emotional life into a roller coaster ride as the stock market moves up and down.

But if you invest in a way that is grounded and reliable, if you follow a strategy, and if you research before picking a stock, you’ll experience feelings of freedom, control, and security a long time before you reach your financial goal.

I have no crystal ball, and I can’t tell you exactly how your life will change. But I can tell you what changed in mine when I began investing in stocks as a value investor.

Here are five emotional changes I have noticed in my life: 

1. Less Stress

Previously, I was always in a hurry. 

I got irritated over small things, like a traffic light changing to red. I felt life was like an assembly line that I couldn’t keep up with. I was always behind, and any small change or delay messed it all up even more. 

Today, I have a feeling of time abundance. My time is mine, and I decide what to do with it.

Whenever I go somewhere, I make sure to plan extra time, so I’m no longer in a hurry going from A to B. I notice small wonders, like sounds of birds chirping or the laughter of a child – and I notice them while waiting for the traffic light to turn green.  

2. Less Grumpy 

Previously, small matters would make me grumpy.

Standing in line at the store, other people were obstacles. I hope I was polite enough, but my attitude was ‘don’t-even-think-about-asking-me-if-you-can-jump-the-line”.

Today, I know my local cashier by name, and I know she invests in stocks. I chat with the people I recognize. Strangers have become three dimensional, and I have more fun interacting with them. They aren’t just obstacles to avoid on the assembly line of life. 

3. Better at Protecting my Boundaries

Previously, I let my boss walk all over me.

When I announced my first pregnancy, he responded with a stone-cold face and told me that I should spend the maternity leave thinking about whether I was working at the right place. He basically told me that I was no longer welcome. Forget about congratulations, flowers or greetings from the workplace after the baby’s birth. I didn’t call attention to it. I let it all slip by. 

Before coming back from maternity leave, I was demoted and told that I was starting from scratch because I had been on maternity leave. In the end, I was fired while on my second maternity leave.

The signs were very clear from the beginning. I should have gotten up and left at the first sign of discrimination. 

Why didn’t I get up and leave? Because I needed the salary to pay my bills. 

Instead, I let myself be humiliated, and letting that happen gave me a feeling that it was the only way to live life. I stopped putting up sound boundaries in other parts of my life. 

Today, I have very clear boundaries. I check in with my feelings as guides. If something doesn’t feel right, it probably isn’t.

I leave the situation or the relationship and I don’t look back.

4. Better at Living Like a Minimalist

Previously, I had a hard time letting go of stuff.

I’m talking about all that stuff we collect throughout life. The pants that don’t really fit. The high-heeled shoes we never got around to wearing. The coffee machine we stopped using.

I was afraid of needing it later on.

Today, I let go of everything that I don’t use or that doesn’t bring me joy. I know that I can always buy what I need later on. When I pass the stuff on to friends or charity, I know it’ll bring joy and be used. 

I know that having a clean closet and a minimalist lifestyle is a lot more valuable than the stuff itself. 

5. Better at Enjoying My Own Company 

Previously, I felt jittery in my own company.

It was hard for me to be alone for more than a few hours. I felt like I was missing out on something all the time. 

Today, I really enjoy my investing practice.

It feels like playing chess with the world. I’m trying to figure out the next move before it happens. You could also say that researching a specific company feels like solving a riddle. 

I can easily spend days on my own with my investing “hobby” because it is satisfying on an intellectual level. 

It has given my life a new layer.

If you want to learn about solving intellectual puzzles and investing with a strategy, you can read my e-book Free Yourself here

Your Quick Guide to Investing in IPOs

Your Quick Guide to Investing in IPOs

Investing in companies going public on the stock exchange can be very alluring.

Many private investors dream about hitting the next jackpot, like Amazon, Microsoft, or Google.

Did you know that if you had invested 18 USD in Amazon’s initial public offering (IPO) in 1997, you would have more than 12 million by 2020?

The truth is that for every Amazon and Google, there are thousands of stocks that completely flop on the stock exchange.

Many IPOs fall flat within a year of going public.

In fact, studies have shown that you would be better off investing in an index than investing in IPOs.

Why is that? What are the shortcomings of IPOs?

  • The companies are expensive 

Companies only go public when the market is at a high level. The people selling the company want to get a good price for what they are selling. Many IPOs take place at the end of a long bull run. You simply cannot find an IPO that is cheap. 

  • IPOs come with professional salesmanship that’s hard to resist

It’s expensive to take a company public. The company has to make a prospectus and get help from an investment bank. There’s a lot at stake and highly professional marketing behind this whole process. It’s hard to resist IPO salesmen. 

  • Private investors’ own dreams of hitting a jackpot pump the price up

 There’s so much excitement about an IPO, and it’s hard not to get carried away. You sometimes see that the stock trades at a high price just after going public, only to crash a few weeks or months later. Why is that? Investors hope that the IPO is the next big kill, and they’re afraid of missing out from the get-go.

Still interested in IPOs? Well, you can still invest in them, but you have to be careful. 

What are some rules you should set up for yourself when investing in IPOs?

Here are a few:  

1. Check the Prospectus  

So many private investors don’t even look at the prospectus before buying those hot IPOs. That’s the biggest no-no of them all.

You have to open the books and look at the numbers.

At first, you just glance through them to try to figure out if you should proceed and research some more.

Does the company even make money? Many companies going public are actually not profitable.

Don’t presume that the company you’re interested in is profitable just because the management talks of a glorious future and some analysts predict they’ll become the next big thing.

That’s just hot air from crafty salesmen. You want proof. 

2. Follow a Checklist 

In theory, you should do exactly as you do when investing in any other public companies. You should follow a checklist to make sure that:

  • The company is growing and profitable
  • They have competitive advantage
  • You like the management
  • They haven’t run up too much debt

 That’s just the beginning. You can download my checklist right here.

The goal of the check list is to ensure that you invest in a company that will be bigger in ten years. Keep that in mind. 

3. Calculate What It’s Worth   

Even the best company can be a lousy investment if you buy it too expensive.

Many IPOs get hyped and sell at a very expensive level.

You can learn how to calculate what a company is worth in my e-book right here.  

4. Limit Your Exposure 

Don’t invest more than you can handle losing.

IPOs fall in the category of risky investments, and you shouldn’t place more than 10 percent of your investable capital in risky investments.

It’ll be volatile and unpredictable. Placing a significant amount of your wealth in an IPO is like eating lollipops for breakfast – it will make your blood sugar unstable and make you irritable all day. You might even have trouble falling asleep at night because your heart is racing. 

Having a huge share of your portfolio in an IPO will make it all very unstable, and you run the risk of losing your cool.

Consider the money you place in an IPO money lost. It’s almost as risky as betting in a casino. 

Other Jackpot Investments

Studies have shown that investing in a fund that matches a stock index is, generally speaking, a better investment than IPOs.

In other words, you are more likely to hit the jackpot by betting on a decent ETF than betting on IPOs. 

Also, remember you might get a much better shot at the IPO later on when the company has matured and proven itself as a business. 

Many IPOs’ stock prices plummet later on. The company might become cheap when going through some kind of event or going through a general market crash.

After the dotcom bubble, Amazon fell from 110 USD per share to 6 USD per share. It was a much better and more secure investment in 2001 than in 1997 (the internet was still a bit exotic in 1997, but by 2001 everyone knew who Amazon was).

Finally, don’t forget that there are many other companies out there that can become very lucrative investments.

Did you know that if you invested with Warren Buffett’s Berkshire Hathaway from 1964 until 2020, you could have turned 10,000 into more than 200 million?

Berkshire Hathaway never had an IPO and never invested in IPOs. 

Buffett bought up all the shares of an old textile company and turned the shell into an investment company. He avoided all the pomp and glory of an IPO and tiptoed through the back door. 

You can learn to invest like Warren Buffett by downloading my e-book Free Yourself. You can get it for free here

Three Ways Stocks Can Boost Your Career

Three Ways Stocks Can Boost Your Career

This blog is about investing in stocks so you become financially free. What does that really mean? Do you invest so that you can laze around on the couch all day and let other people do the work? 

No, not at all.

You can use stocks as a tool to get a better life with a better variety of choices. This eventually means you can use stocks as a tool to get a better career. How can investing help you create a better work life with richer opportunities?

I’ll show you how by giving you three examples from my own career of what NOT to do – and what to do instead.

1. You Have More Guts

The biggest mistake I made in my previous career (I was a business journalist in my previous life) was not setting clear boundaries in my job.

There was a specific situation where I should have resigned on the spot. I had applied for another job at the same newspaper. The business editor got word of it and was very upset with me for wanting to leave his section of the paper. He called me into his office and declared two things.

A. He didn’t recommend me for the position.

B. From that day on, I was covering the retail sector instead of banks – which was a clear demotion.

It was such a vindictive and unjust act, and I should have left the paper on the spot. Yet, I didn’t. 

I swallowed the humiliation and went back to work. I didn’t even express my dissatisfaction to coworkers. Why? Because I was afraid. I feared losing my monthly salary. I depended on it.

If I had been financially independent, I would have made bolder moves – and in that particular situation, resigned right there in his office. Before leaving I would have had a word or two to say about it. 

What about you? If you didn’t have to, would you still keep the job that you have today?

2. You Can Take a Sabbatical Year to Study and Improve Your Skills

If you are financially independent, you can take a year off to refine your skills – or to study something new. 

About 10 years into my career, I began dreaming of applying for a fellowship in business journalism (the Knight-Bagehot Fellowship). It remained a thought – I never applied. Why? Because the financial implications of studying and living in New York for a year (which I had already done once in my life) seemed financially crippling.

Yet, in hindsight, it would have been exactly the right move at the time. It would have given me time to reflect and gain new skills, new ideas, and inspiration. Who knows, maybe I would have stayed in the US where the opportunities were richer. 

Most people don’t take time mid-career to refine or renew, exactly because of the financial obligations that they have. They have mortgages to pay and have somehow become dependent on having a decent monthly salary.

If you could take a year off to study anything you want, what would you study?

3. You Gain Tools to Analyze Your Employer 

When I found myself facing a dead end in my career as a newspaper journalist in Denmark, I hired a coach to figure what to do about it.

I spent hours explaining what had happened at work – in particular my power struggle with the business editor – which felt like an entangled knot that I couldn’t quite figure out how to unwind. 

After several sessions, the coach asked me one simple question: “Would you consider working in an industry that isn’t in decline?”

I was taken aback by the question.

I was expecting my coach to concoct a complicated strategy to overcome the obstacles and power struggles so I could prosper and succeed. Yet he thought I should catapult myself out of there. 

He went on to explain that it’s a hopeless battle to try to make a career in a world of dying dinosaurs. You’ll get trampled as they stumble and fall. Industries and companies in decline make terrible workplaces. It’s far easier to have a great career in a company in the early stages of growth. 

I already knew that print papers were struggling, but for some reason I hadn’t connected the dots to the challenges that I was experiencing myself. I was so focused on studying my situation through a magnifying glass that I had forgotten to take a ride up the elevator to see the problem from a distance. 

When you invest in an individual company, you’ll look at the annual report and make sure it’s a company with growing sales and growing profit. If it’s not, you should stay away from investing in it.

It’s really important to have a bird’s eye view of the company you’re considering buying stocks in.

You have to assess whether you’re dealing with the best company in the sector, and whether they’ll grow to be even bigger the next decade or two.

I would never have invested in a local-language print newspaper with diving subscriptions, an endangered customer base, and an outdated business model giving customers the news a day after the rest of the world.

Then why would I devote my life to it? 

What about you? Have you considered whether you would invest in the company you work at? Have you analyzed your own employer?

You can learn more about how to analyze companies in my e-book Free Yourself here.

Don’t forget the e-book Free Yourself.  It’ll teach you how to calculate how much a company is worth. You can get it for free here

Top 20 Best Websites for Stock Research

Top 20 Best Websites for Stock Research

There are a lot of tools available for you as an investor, but it’s easy to get lost on the internet.

This list will help you cut to the chase and find the best sites quicker. 

Here are the 20 best online tools and websites for value investors: 

1. The Company’s Own Investor Relations Site

The first source of information should be the original source, and by that I mean the annual report, quarterly statements, and other information from the company itself.

There should be a link to the subsite for investor relations on the home page.

If you still can’t find it, just google the company’s name + investor relations. 

2. Google 

You should google the company to see what comes up.

There could be awful – but truthful – reports from short sellers (people betting on the stock falling), big insider selling, or some lawsuit that hasn’t been settled yet.

Always, always google the company you are researching. 

3. News Media  

Take a look at the headlines on the major news sites every day.

I check:

Make it a part of your daily routine to check the websites. You don’t have to read a lot of articles from start to finish – this is about getting the big picture. 

4. Reuters 

Reuters.com contains a stock site that can be really useful to get an overview of a company’s development. 

You can use the search function to find the company.

On the “profile” page of the company, you can see things like how many shares there are. You’ll need that for several calculations when you want to figure out what price you would want to pay per share. 

5. Bloomberg

Bloomberg.com is similar to Reuters – they both sell data to the financial sector. 

Bloomberg has a more aggressive paywall on their website though, but you can still use it to look up the numbers of shares outstanding.

6. Insider Monkey 

InsiderMonkey.com is useful for checking if insiders are dumping the stock.

You don’t want to touch something that the insiders are doing a fire sale of.

History has shown us that insiders often try to unload the stock they own before it’s obvious to the public that a company is going bankrupt. 

7. Gurufocus  

Gurufocus.com shows you what the big value investors invest in. 

You can see the portfolio and their latest trades. Just be aware that the investors only have to report their US investments every quarter, so the information is never going to be completely updated. 

8. Dataroma 

Dataroma.com is a more simple version of a value investor tracker.

It includes different investors from Gurufocus, so it’s a nice addition – Li Lu is on Dataroma, but not on Gurufocus. Who wants to miss out on what Li Lu is doing? Charlie Munger trained him, and some people speculate whether he has a future role to play in Berkshire Hathaway.  

Whalewisdom       

Whalewisdom also tracks the big value investors. I like their heatmap.

10. Seeking Alpha 

On Seekingalpha.com you can find a lot of investors’ analysis and stock ideas.

They have a morning briefing podcast called Wall Street Breakfast. You can find Seeking Alpha’s podcasts here.

11. Investopedia

Investopedia.com is for investors what Wikipedia is for normal people.

If you find something in an annual report that you don’t understand, try looking it up on Investopedia before you panic.

12. The Motley Fool  

The Motley Fool, also called Fool.com, is run by two brothers, and it helps you invest through blog posts, podcasts, videos and so on.

It’s possible to receive stock recommendations if you sign up for the paid version.

13. Morningstar 

I use Morningstar.com for researching ETF and other funds. It’s an easy way to look up their performance and costs.

You can also enter and track your portfolio on Morningstar. 

14. Yahoo Finance 

 You can use Yahoo Finance for a lot of stuff, like setting up a stock screener, entering your portfolio, creating a stock alarm, and many other things.

15. Trading View 

 Tradingview.com is great for charting.

It’s got plenty of other functions like a stock screener. If you’re into Bitcoin and other cryptos, you can chart them here too.  

16. Finviz 

On Finviz.com you can chart, build portfolio and stock screeners, get an overview of the news, backtest your latest trading idea, and much more.

17. Market Screener 

Marketscreener.com lets you chart, build a portfolio, a screener – and many of the other features that the two previous financial sites also offer.

You’ll have to test them and see which one suits you the best.

18. Simply Wall Street 

Simply Wall Street is a value investor site that evaluates investments for you.

I get a little confused about the warning signs that they show, so I prefer to do my own analysis, but I see no reason why you can’t get inspired by Simply Wall Street – as long as you go to the original source (the company’s report) and do your own analysis as well. 

19. SEC Edgar 

 The Securities and Exchange Commission’s website Sec.gov contains a lot of information… if you have the patience for the not-so-user-friendly system.

The funds trades are there – which means you can find all the big investors investments and trades.

Be careful though – you might click on something that fills your screen with code language or html.

The SEC communicates in a semi-cryptic language – here are some of the most important form codes to remember:

  • 13F : Funds reports of their investments
  • 10-k : Annual report
  • 10-q : Quarterly statement
  • 4 : Changes in insiders’ ownership

20. Money and Freedom 

 You’re here, aren’t you? It’s worthwhile following this blog for the weekly posts and lists. 

You’ll automatically be signed up for the weekly investment tips if you download the e-book. Which brings me to…

Don’t forget to read my free e-book that explains my whole investing process – including my favorite way to calculate what a company is worth. You can get it here.