Peter Lynch Peter Lynch managed the Fidelity Magellan Fund from 1977 to 1990, during which time the fund’s assets grew from $20 million to $14 billion. More importantly, Lynch reportedly beat the S&P 500 Index benchmark in 11 of those 13 years, achieving an annual average return of 29%. Often…

Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification…

Capital gains – Capital gains are not taxable in Kenya (while there is capital gains legislation, it has been suspended since 1985). The government has however indicated that a review of the capital gains tax provision has been initiated with a view of reintroducing the tax in the near future.

Warren Buffett is arguably the world’s greatest stock investor. He’s also a bit of a philosopher. He pares down his investment ideas into simple, memorable sound bites. Here are a few of them: “Rule No. 1: Never Lose Money. Rule No. 2: Never Forget Rule No. 1.” Buffett personally lost…

Here’s a list of top 16 traits of top investors: Open and agreeable to new ideas Go with the flow, carefully Not exactly thrill seeking, but not cowards either Resilient Social individualists Disciplined, but not to a fault What pressure? Eyes on the exists Avoids crowds Doesn’t chase hot stocks…

Growth investing is a strategy whereby an investor seeks out stocks with what they deem good growth potential. In most cases a growth stock is defined as a company whose earnings are expected to grow at an above-average rate compared to its industry or the overall market.

Code – This is the unique alphabetic name which identifies the stock. Days Hi/Days Lo – This indicates the price range at which the stock has traded at throughout the day. In other words, these are the maximum and the minimum prices that people have paid for the stock. Price…

Many investors new to the stock-picking scene believe that there is some infallible strategy that, once followed, will guarantee success. There is no foolproof system for picking stocks! If you are reading this tutorial in search of a magic key to unlock instant wealth, we’re sorry, but we know of…

In today’s financial marketplace, a well-maintained portfolio is vital to any investor’s success. As an individual investor, you need to know how to determine an asset allocation that best conforms to your personal investment goals and strategies. In other words, your portfolio should meet your future needs for capital and…

Earnings reports can be reviewed and interpreted in different ways by different investors. Some prefer skipping the opening sections on financial data to read about management’s take on the market and the risks facing the company. Some prefer jumping right into the numbers and comparing those to previous quarters and…