Investing Basics

Inflation

Inflation is Here, and It’s Real: What You Need to Know

Inflation is finally here, and it’s real. In 2021, inflation grew at a year-over-year rate of 7%–the highest growth rate since the early 1980s. At first, its impact was felt in certain sectors and products, especially those that were affected by supply chain issues. It then progressed to the grocery shelves. Now consumers are seeing …

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rich or wealthy

“Rich” or “Wealthy”—What’s the Difference and Why it Matters

I sometimes find myself having a conversation with people about the difference between being rich and being wealthy. I find that many people use the terms “rich” and “wealth” synonymously, with both implying “having a lot of money.” Some may think of that as having wealth, but their actions indicate that they are merely rich. …

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share buybacks

Are Share Buybacks Good for Investors?

Share buybacks are up substantially in 2021, nearing $200 billion worth of shares purchased by nearly 300 companies. Apple, Alphabet, Facebook, and Microsoft are leading the way with $67 billion in shares purchased between them. What’s going on with these companies, and are share buybacks good for investors? The short answer is “generally, yes.” For …

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board of directors

Why Shareholders Need to Pay Attention to Their Board of Directors

We’ve known a CEO or two or three, actually many, who’ve made mistakes—catastrophic mistakes that cost people their jobs and 401(k)s. But then, that is why there are boards of directors—to safeguard shareholders from disastrous CEOs, hire good ones, guide strategy, and keep management from wrecking companies and decimating shareholder value. Right? As shareholders, that’s …

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