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Island Investing

Riffs, rants, and the upside of investing from way off Wall Street


Category: Island Investing

Island Investing: Status of Reform

From my column last Saturday in the Keys Weekly. Q. What’s the latest on financial reform? A. Last week the Senate passed major financial reform legislation that is in now being reconciled with a bill passed by the House last year. Once the differences are ironed out, it will be signed into law. The legislation, […]

Island Investing: Volatile Markets

Q. What’s with all this volatility in the market lately? A. It’s been a strange, tough few weeks in the stock market. From the crisis in Greece to the Gulf oil spill and the bizarre 1,000 point “flash crash” in the Dow, there are plenty of reasons the market seems uncertain. Take inflation. Two months […]

Island Investing: High Frequency Trading

Q. What is high frequency trading? A. Five years ago, if you asked me to name two arcane financial subjects that I’d probably never hear discussed in a diner in the Keys, I’d have said ‘credit default swaps’ and ‘trading algorithms.’ During lunch at Mangrove Mike’s in Islamorada a year ago, however, I first overheard […]

Island Investing: Goldman Sachs

My column today from the best little newspaper south of Jewfish Creek, the Keys Weekly. Q. What exactly did Goldman Sachs do to get into such trouble? A. Late last week, the country’s premier investment bank Goldman Sachs was accused of securities fraud in a civil suit filed by the Securities and Exchange Commission. The […]

Island Investing: Financial Reform

My column in today’s Keys Weekly. Q. What’s going on with financial reform in Congress? A. As you have probably heard by now, there is a significant financial reform bill currently making its way through Congress. The House passed its proposed reform bill at the end of last year, and the Senate will take up […]

Island Investing: Shenanigans

Q. How can I tell if a company is playing games with its financial statements? A. You may be the kind of person who likes to dabble in stocks. Perhaps you buy a few shares without doing research just because it gives you a thrill. Or maybe you have a small amount to invest and […]

Island Investing: Statement of Cash Flows

My column in today’s Keys Weekly. Q. What should I know about a company’s cash flows? A. The third financial statement that stock investors should become familiar with is the statement of cash flows. Inflows and outflows of cash are the heartbeat of any business, and investors, like company managers and lenders, should examine them […]

Island Investing: The Ole P&L

My column today in the media juggernaut that is the Keys Weekly. Q. What do I need to know about a company’s income statement before I invest? A. In short – as much as you can stand. A balance sheet contains items that usually don’t merit spending hours on. However, an income statement, also called […]

Island Investing: Balance Sheets

Q. What kind of information should I be looking at on a company’s balance sheet? A. You’re in luck, dear readers. There is simply no way to teach balance sheet analysis in a 350-word column. The official definition of “current liabilities” itself is 200 words long. My hunch is that many of you would rather […]

Island Investing: Where Research Should Begin

From my column in today’s Keys Weekly. Q. How should I start learning about a company I might invest in? A. Investors are fortunate that the SEC requires public companies to publish comprehensive financial information about themselves. Unfortunately, much of that information often looks like corporate propaganda. So while I’d suggest the first place you […]