The saying “one size fits all” is not tossed around in the world of investing very often… and that’s for good reason. Risk appetites, investment horizons and financial goals mean portfolios can — and usually do — look different from person to person. Going a step further, each asset in those portfolios carry their own quirks that require tailored analysis. #-ad_banner-#With the wide range of products trading on public exchanges these days, it’s important to know that a worthwhile metric in one industry may not reliably apply to the next. One shining example of… Read More
The saying “one size fits all” is not tossed around in the world of investing very often… and that’s for good reason. Risk appetites, investment horizons and financial goals mean portfolios can — and usually do — look different from person to person. Going a step further, each asset in those portfolios carry their own quirks that require tailored analysis. #-ad_banner-#With the wide range of products trading on public exchanges these days, it’s important to know that a worthwhile metric in one industry may not reliably apply to the next. One shining example of this is EPS, or earnings per share. Many investors use EPS quarter after quarter to rate their holdings, but if you used that metric to value one industry in particular, you’d be way off base. Real estate investment trusts have been a cornerstone of my trading portfolio for years now. While you may already be familiar with REITs and their inner workings, would you know how to properly value and compare them? Correct REIT appraisal centers on a key metric known as funds from operations, or FFO. Read More