• Personal Finance

    Smart Stock Picks: A focus on financial metrics

    September 4, 2023 - By 

    Analyzing a stock’s financial health involves a comprehensive review of critical indicators. Earnings and revenue growth, profit margins, debt levels, cash flow, and return on equity and assets provide valuable insights into a company’s financial strength. In this article, we’ll explore how to assess each of these indicators to make informed investment decisions by smart stock picks. 1. Earnings and Revenue Growth: Review Historical Performance: Examine the company’s earnings and revenue growth over several years. Steady growth indicates a healthy business model. Compare Industry Averages: Benchmark the company’s growth rates against industry averages to determine its competitiveness. Evaluate Consistency: Consistent…

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    Personal Finance

    The power of leverage: Strategies for investment income

    September 2, 2023 - By 

    Imagine you’re an investor interested in purchasing a rental property. You have two options: you can buy the property outright with your own funds or you can use leverage by taking out a mortgage to finance a portion of the property’s purchase price. Example 1: Buying Property Without Leverage Let’s say you decide to buy a property for $300,000 using your own funds. Over the years, the property appreciates in value by 3% annually, and you’re able to charge $1,500 in monthly rent. In this scenario, your investment is fully unleveraged, meaning you haven’t borrowed any money to make the…