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From Greg Wilson, chief analyst, the Legacy Portfolio: Our goal at PBRG is to provide subscribers with a comprehensive wealth-building plan.
With the Legacy Portfolio, we give you all the tools to create and grow your own portfolio… so you can create a legacy for yourself and your family.
So today, I’ll share with you four gifts to add to your personal investing toolkit…
Gift No. 1:
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Buyupside.com offers financial calculators and other useful tools. My favorite tool is the “Stock Return Calculator.” Just enter the stock symbol and the start and end dates of an investment. The calculator spits out the total return and annualized returns—with dividends reinvested. Longtime Legacy readers know we stress the importance of reinvesting dividends. With this calculator, you can see the powerful effect reinvesting dividends has on your returns. I also use the calculator to compare returns from different starting points. I’ll compare returns for a stock from a period of overvaluation to returns from a stock in a period of undervaluation. This exercise illuminates the importance of buying at sound valuations… a key tenet of the Legacy Portfolio. |
Gift No. 2:
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Dr. Aswath Damodaran teaches corporate finance and valuation at NYU’s Stern School of Business. He’s very passionate about valuation. And his website offers a wealth of information, including his writings, videos, tools, and data. I like the industry data he provides. The data can be tricky to reach, so here are simple instructions: Go to his home page here. Then click on the “Data” tab. Next, click on the “Data Breakdown” tab. You’ll find great information contained in the “Industry Breakdown” area of the page. I also like to use the data sets located in the “Multiples” section, under the “Current Data” tab. You can use this data to compare the multiple of a stock you’re looking at versus the multiple of the industry. It’s a good starting point to gauge the valuation of an individual stock. |
Gift No. 3:
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Regular readers know we love dividends at the Legacy Portfolio. Want a quick resource to find out how frequently—or in which month—a company pays a dividend? Then check out Tessellation.com. I like the “streaks” page… you can find it here. This page shows which stocks have increased their dividends by X% (ranging from 1-25%) over Y years (one year to 30 years). It’s a good resource to find new investment ideas. |
Gift No. 4:
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Need a stocking stuffer for your budding Legacy investor? I suggest The Little Book That Builds Wealth by Pat Dorsey. Dorsey’s the former director of equity research for investment research firm Morningstar. He helped develop the company’s economic moat ratings. And he’s an expert on competitive advantages. Regular Legacy readers know we only invest in dominant companies with unassailable competitive advantages. These companies can earn high rates of return over long periods of time. In this short, easy-to-read book, Dorsey breaks down the sources of competitive advantages and provides real world examples. It’s a great addition to any Legacy investor’s library. |