Core Holding

  

Categories: Accounting, Investing

Let’s hope you don’t like to speculate too much as an investor. Instead, let’s hope you prefer to buy and hold and then occasionally take some risks every now and then with new technologies that come along.

You have a portfolio of six stocks. For the long-term, you hold five stocks: Exxon, Apple, Microsoft, JPMorgan, Johnson & Johnson, and Unilever...because they provide growth and income potential.

Then you speculate with two other positions in your portfolio. You buy and sell on a regular basis, trying to time the market or take advantage of market selloffs.

The first six stocks that we listed are your core holdings. These are central to your long-term portfolio, and you hold them over an extended period of time. The second group represents your secondary holdings, which are non-core, and are meant to try to outperform the market by a wider margin.

Core assets aren’t limited to stocks. They could include gold, S&P 500 index funds, even lumber if you’re so inclined. But the goal here is to beat the market and ensure long-term appreciation of your money.

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Finance: What is Earnings Per Share (EPS...33 Views

00:00

finance a la shmoop what is earnings per share or EPS? okay you know the lemonade

00:09

stand the one with 20 grand in sales and 16 grand in gross profits and yeah will [Balance sheet for Lemonade Stands R Us appears]

00:14

spare you the gross jokes you know the customer asks lemonade.. what the fly

00:19

was doing in his lemonade and yes of course she said the backstroke what else

00:24

would you expect from the people at Schmo really?

00:26

so after gross profits there were operating expenses like those and then

00:31

operating profits down here that 7,500 thing then there were taxes and yeah

00:37

there are always taxes we can grumble about and then finally net income aka [Net income appears on balance sheet]

00:42

earnings but then below earnings you'll see that there are a hundred shares in

00:47

this little company the founder owns 60 of them mom owns 10 the new stepdad owns

00:53

20 he was guilted into it by you know the divorce lawyer and Enrique the

00:57

gardener for some reason who has cleverly weaseled his way into the

01:01

families arts and minds owns the last 10 its annual report time and the investors

01:06

want to know what their earnings per share were so that they can all compare

01:11

relative performance on their investments right so the total earnings

01:15

of the company in this example was five thousand two hundred fifty bucks which

01:20

means that the earnings per share of our little lemonade stand company here or

01:26

that 5,250 figure divided by a hundred or 52.50 a share that's [EPS formula appears]

01:32

what each share earned if you divvy the company into a hundred little pie slices

01:37

or parts so yeah earnings per share equals earnings per slice o pie or wait

01:43

lemonade pie has that been done yet time for a new business venture what do you [A plate of lemonade pie appears]

01:47

think we're taking investors just call us please

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