Compounding Snowballs

This is the Humility Curve made by Tim Hanson, it shows the normal path of an investor. Normally investors start at stocks they understand like Whole Foods (WFM), Mattel (MAT), etc. Then, investors think that they’ll make more money with complicated stocks like Cresud. People believe that they can make more money with complicated stocks because when it comes to jobs, the more complicated the more money you make, this doesn’t apply to stocks and I’ll show you why. Cresud is an Argentinian farming company, they own farmland in Brazil and sell it at very low prices, around $3.00 an acre. I know that sounds like a great deal and maybe once they sell some of their lands they’ll make a profit, the second you glance at the numbers you’ll find that Cresud is not the way to go. Metric Hurdle Cresud ( CRESY ) Gross margin 25% or higher 28.9% Return on Equity 15% or higher -109.9% Dividend yield Between 2-5% --- Dividend Payout Ratio 50% or lower --- ...

Recently I talked at my school about investing. I will be singling out the Humility Curve for an upcoming post if you found that interesting.Scroll down to learn more about kids and investing, the power of investing, and my Brother's Stock Researcher .

I know, teenagers rant. Here’s one rant that might be beneficial. I recently was interested in starting an investing club at my school. That shouldn’t be a problem, right? It’s all about an important topic - money, and how to make money without getting up from your couch. But, I can’t think of a single person who would attend. Harry Potter club has a 5:1 person to chair ratio, even Student Council can be overflowing with kids. Granted I live in Minnesota and it’s freezing and that’s their excuse to avoid going outside. Girls my age tend to only care about boys right now and if they have any interest in money they haven’t spoken up about it. Yes, in middle school if someone mentions the word money everyone’s response is “I’m broke, lol.” Is it now cool to have no money? I can tell you it won’t be later. Don’t parent to produce consumers. Let me explain, let’s talk about Kate Spade. Any parent with a teenage daughter is probably closing this tab and thinking I don’t want to he...

(Guest post and Stock Researcher tool by Soren Peterson) Instructions Type the stock ticker symbol in CAPITAL letters in the textbox and press "Enter" Guide: ROE should be 20 or higher Price/Earnings should be 20 or lower Debt/Equity should be 1 or lower Gross Margin should be 25% or higher Dividends should be between 2-5% Research the Minnesota 100 Not financial advice. For education and research purposes only. Do your own research. Data Source - Google Finance and Morningstar Stocks in this Minnesota 100 dataset 3M Co MMM ALLETE Inc ALE ANI Pharmaceuticals Inc ANIP Apogee Enterprises Inc APOG Appliance Recycling Centers Of America Inc ARCI Arctic Cat Inc ACAT Best Buy Co Inc BBY BioAmber Inc BIOA Bio-Techne Corp TECH Buffalo Wild Wings Inc BWLD C.H. Robinson Worldwide Inc CHRW Canterbury Park Holding Corp CPHC Capella ...

(Guest post and Stock Researcher tool by Soren Peterson) Instructions Type the stock ticker symbol in CAPITAL letters in the textbox and press "Enter" Guide: ROE should be 20 or higher Price/Earnings should be 20 or lower Debt/Equity should be 1 or lower Gross Margin should be 25% or higher Dividends should be between 2-5% Research Not financial advice. For education and research purposes only. Do your own research. Data Source - Google Finance and Morningstar Stocks in this dataset Alphabet Inc C GOOG Amazon.com Inc AMZN American Water Works Co Inc AWK Apple Inc AAPL AT&T Inc T Build-A-Bear Workshop Inc BBW Chipotle Mexican Grill Inc Class A CMG Clorox Co CLX Coca-Cola Co KO Costco Wholesale Corp COST Cracker Barrel Old Country Store Inc CBRL Deckers Outdoor Corp DECK Discovery Communications Inc C DISCK Dollar Gene...