
With the pricing of securities behind us, we now focus on which
securitys to buy. Almost every strategy ever proposed to try to answer this question comes
down to one premise; trying to get something for free. Not that this is unique to investing. People drive to the ends of the earth trying to find that car or television
for another dollar off. Most strategies
try to unearth bargains through the pursuit of information others don't know.
The theory of most websites: find a piece of unknown information which makes future dividends more
secure, or larger than expected, thus making the security cheaper
than the market prices it.
First we go through a brief summary
of some of the most popular investment strategies for stocks. Then we will identify
which strategies are fundamentally better.
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The Handbook of Fixed Income Securities by Fabozzi
A nice companion for those looking for in-depth information on such topics as present value and yield. Overall, a complete handbook for those interested in fixed income securities.
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