Financial Tips For The New Investor

The new year is only a few days away. Get a jump start on financial success and claim what’s yours!

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  • Getting 2019 started right concentrating on three key steps.

  • Results may vary depending on your investing style.


The new year is on its way and you are ready to get serious about investing in the stock market! Now you can either jump right in and invest, or you can take necessary precautions and plan for success.

It took me some time to really get a grasp of how the stock market works and what investing style worked best for me. I look back and wish I wouldn’t have rushed the process at first, and because I did it cost me hundreds of dollars. So learn from my mistakes and check out these financial tips before you dive right in this year.

Minimize your expenses and relinquish your debt.

Be Aware Of Your Spending Habits

This is the most challenging part of all, but if you are afraid to check your personal bank account on a daily basis, don’t invest in the market. Learn to manage your personal finances, minimize your expenses and relinquish your debt. Being responsible for your spending habits is a must if you want success with your investments.

Life catches us by surprise often…

Emergency Savings

I was told by a wealthy businessman to always have at least $1,000 emergency fund on the side of your investing endeavors. And once you have started with that, build it to $2,000 (and so on). If you have a family, your emergency fund may need to be $3,000 – $10,000. But, if your main source of income stopped today, how long could you survive from your current savings?

Why?

Life catches us by surprise often, so it’s best to have a side savings fund to be prepared- sudden surprises such as car repair, house repair, etc. It’s not recommended to have all of your savings placed in the stock market. If you placed it all in a brokerage and suddenly needed the money, it could take several business days to complete the transactions (fees could be involved). You may also consider holding your securities long-term for tax purposes.

Concentrating on these two tips will help you to become a better investor in 2019. Be patient and learn from others. It’s very common for investors to have come excited, but have a strong game plan and keep your eyes open to new opportunities.

Please see About Me & Disclaimer for additional information about Black Tea.
Closing Disclaimer:

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market. We are a participant in the Amazon Affiliate Services LLC program, an affiliate advertising program designed to provide means for us to earn fees by linking to Amazon.com and affiliated sites.

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Johnson & Johnson: Damaged Forever?

Things aren’t looking good for Johnson and Johnson. What can we expect next?

  • Second time this year in 2018, JNJ (Johnson&Johnson) has been targeted for it’s knowledge of asbestos in its world-famous talc baby powder.
  • Will thse issue conintue to occur? Should investors be concerned for the company’s reputation?

JNJ ( Johnson & Johnson, $133.10) stocks tumbled down 10% Friday 14th, 2018 as the company has been handling their pressures of the public knowing of asbestos in it’s baby powder. Some investors are concerned for how the issue is going to be managed and if this will effect their next earnings report. Yet, other investors aren’t concerned since the company is vastly know for their award-winnning products and their loyalty to their customers. However, this is not the first time they been hit with public shame for asbestos this year.

What Happened?

 

July 12th, 2018, JNJ was also hot in the news for being sued by 22 women for receiving cancer and /or poisoning for asbestos found in their famous talc baby powder. But should JNJ be shamed for this? Does this make JNJ a bad company?

According to mesothelioma.com, Trelomite, also known as amphibole asbestos, is created in the same nature as talc. Tremolite is often found in the same mines as talc and without special quality testing, it can contaminate the talc. However, talc can not only be used in baby powder but chewing gum, oils, makeup cosmetics, hair products, and more.

Read: Tariffs: What Are They? How Are They Affecting My Portfolio?

JNJ’s lead attorney, Bart Williams had more to say on the issue,

Johnson & Johnson doesn’t believe it should be intimidated into removing a product that’s been out over 100 years, that has diapered hundreds of millions of babies around the world, simply because plaintiff lawyers have put a target on the back of Johnson & Johnson.We believe in the product. The product works. The product is beloved. The best scientists in America have reviewed it again and again.



Does this event make JNJ a bad company? Investors and customers still believe in the company and await its next press release.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

CNBC.com, Mesothelioma.com, Factsabouttalc.com, Cnn.com

IG Snapshots

Estee Lauder: The Kind Of Beauty That Lasts Forever

Is Estee Lauder (EL) a stock for you? Find out what analysts are saying.


  • Are you looking for a growth stock to add to your portfolio?
  • EL is leading the pack in the beauty and cosmetics industry.
  • Find out now if EL is the right stock for you.

EL (Estee Lauder Companies Inc.,$140.12) is one of the world’s largest corporations that leads with products in skincare, makeup, fragrances and hair products. Bringing in $13 billion this FY (fiscal year of 2018), the stock is currently rated as a “buy” or “hold” by stock analysts. But what makes EL stick out from other corporations?

Acquisitions, Mergers & Investments

EL has acquired some of America’s most popular cosmetic brands in 2016- Too Faced cosmetics, Kilian fragrances, and BECCA cosmetics.

Read: Honest Review- Acorns Investing App

Dividends

So far this year the company has bought over 500,000 shares through their share buyback program and recent dividend payment was $0.38 per share (last effective date 8/30/2018).

EL compared their long-term growth to the S&P market in their recent 10Q filing:

“The returns are calculated by assuming an investment of $100 in the Class A Common Stock and in each index on June 30, 2013.”

The company also seeks out other methods of advertising through sponsoring brand ambassadors on social media.

While some investors see EL as a long-term growth stock, others see opportunities for options trading. Regardless, shareholders are expecting growth every quarter.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

SEC.gov,Zacks.com

Honest Review: Acorns Investing App

Honest Review for one of the hottest investing apps on the market!

Image Credit


Acorns is a stock investing app that has many special features customized for the beginner investor. Its main selling point for customers is their specialized “round up” feature. If you connect your bank account to the app, they will monitor your personal bank account and round up every dollar spent and use the cents toward your stock account.

For example: If you bought a cup of coffee this morning that cost you $2.75, Acorns will round up to the nearest dollar to $3.00 and place the $0.25 cents towards your stock portfolio to be invested.

(Another example presented by Acorns to round up to $4.00)

Fees Involved

  • $1 a month for holding an account Acorns Core (standard). However, this feature is free for college students
  • $2 for Acorns Core + Acrons Later (standard account and retirements
  • $3 for Acorns Core + Acorns Later + Acorns Spend (standard account, retirement account, and Acorns exclusive checking account)
  • Additional fees may vary

Investments Allocated

Simplified, Acorns does all the work for you. When you sign up for a free account, you will be asked a few questions that will customize your investment portfolio. You will be able to choose your investing style from categories that range from conservative, moderate conservative, moderate, moderate aggressive, and aggressive. These customized stock portfolios will have a range of investments from government bonds and real estate stocks to corporate bonds and emerging market funds.

Image Credit


In my humble opinion…

This is a very simplified way to invest into your stock account, however, I didn’t make many purchases and I found that it was best for me to add my own money instead of using their automated feature.

Acorns use stock advisors form Vanguard and Blackrock to customize their managed portfolios. This is exceptional, however, Blackrock’s ETF’s at times has higher fund management expenses that may give your a less return from other ETFs.

Also, I prefer taking charge of my own investments and arranging my own stock portfolio. Acorns didn’t give me the liberty to add or take away any stocks.

This app is best for the new investor that doesn’t want to put a lot of time into studying the market. If you find yourself in the position with a very busy career or you find the stock market confusing but you still want to invest, this may be an application for you to try.

Please see About Me & Disclaimer for additional information about Black Tea.

Stock Investing 101: What Am I Looking for When I Start Investing?

Do you want to start investing but you don’t know what to look for? Let’s take the first step together and find out what is important.

  • There are many things you could look for in a company, but if your new to stock investing it can get be overwhelming.

  • Today we are looking for a company that has two characteristics: a special product or a special service.
  • Always look for consistency and growth and any long-term investment. Let’s get started.

There are many exceptional companies you can find on the stock market, but some of the greatest corporations will have at least one of these characteristics: a special service or a special product. And if the company has both, you may have found the jackpot. Now, this sounds very simple considering most corporations have something to sell to make a profit from, yet what is special about this product? What is unique about this service that attracts repeat customers to want to use more than other companies? Let’s dig deeper into what to look for in a company if they have a special service.

A Special Service

Leading companies on the stock market that have a special service may be companies such as WFC (Wells Fargo), WTW (Weight Watchers INTL. INC.), AWK (American Water Works Company Inc.), or FDX (FedEx). You will find that most of these companies listed are businesses you have already heard of because they have mastered the technique to be people specific.

For example: If you want to lose 10 pounds, you may want to subscribe to a Weight Watchers meal plan. Or perhaps you want to mail a monetary gift to a friend who is getting married? You can use FedEx or send money through an app through Wells Fargo. These companies have solved and everyday people problem and these everyday solutions have made these companies millions of dollars in revenue.

 

Read: How To React When Your Portfolio Is Plunging

A Special Product

You may not have to look far to find a special company that owns a special product. The fastest place to look may be your bathroom counter or you daily vitamins that are placed in your pantry. Companies such as PG (Proctor & Gamble), USANA (United Health Sciences Inc.), or EL (The Estee Lauder Companies, Inc.) are companies that mastered a way to sell a special product to maintain repeat customers. Their special product(s) aim to solve a problem for the consumer and if the products are good enough, there is no need to make revisions this lead to fewer company costs that will save the company more money in the long run.

Fast Analysis: Sysco Corporation Ready, Set, Goals!

There are many great corporations I may not have mentioned today, but when looking for a particular company to invest in, find a company that has a durable competitive advantage over other corporations. This company with a special product or service needs to stick out from the crowd from their competitors. After you have found the company’s niche, look through their history of performance and look for consistency of growth in areas such as revenue, gross profit, dividends, and production. Is the company holding profit or are they struggling with debt?

Take your time to do your research on the company that deserves your money and time for maximum profitability.

 

Closing Disclaimer:

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market. We are a participant in the Amazon Affiliate Services LLC program, an affiliate advertising program designed to provide means for us to earn fees by linking to Amazon.com and affiliated sites.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

TheStreet.com

Sysco Corporation (SYY): Ready, Set, Goals!

A company that sets and achieves goals is a company for me.

SYY (Sysco Corporation, $72.83) is one of America’s leading foodservice distributor. Found in the “Consumer Defensive” sector on the NYSE, this powerhouse controls more than 17%, approx. $300 billion in its market. From servicing educational facilities to hospitals, the company stays on top by staying committed to one of the things they see most important, goals.

(Even Jim Cramer has his own humble opinion on SYY)

SYY has consistently created and completed their goals and keep a 3-year plan to hold themselves accountable to. This year they have a plan to finish strong with only three goals in mind:

  • “Enriching the Customer Experience,”
  • “Delivering Operational Excellence,”
  • “Optimizing the Business and Activating the Power of Our People.”

Improving the company from the inside out, the company also set strong goals for the year 2020:

  1. Sales growth of increased 4% or 4.5%.
  2. Adjusted income growth of 9%.
  3. Adjusted net earnings of 9%.
  4. Adjusted diluted earnings per share in the range of $3.40 to $3.50, and an increase of approximately 12%.
  5. Reaching $600 million to $700 million of adjusted operating expenses.
  6. Achieving 16% in adjusted return on invested capital for existing businesses.

SYY is prepared to carry through with the action of accelerating locally managed customer case growth and driving leverage between the growth of gross profit and expense growth.

So Far…

SYY’s achieved $0.94 quarterly earnings (pers hare) from analysts estimates of $0.72 per share last year. Revenue growth grew to $15.32 billion for the quarter ending in July of 2018 and sales increased by 6.1%. The company has now passed consensus EPS estimates three times, great stuff SYY.

Related: Alibaba Group Holdings LTD: Ther International Powerhouse

Many investors compare SYY to other stocks such as KR (The Kroger Corp.), UNFI (United Natural Foods Inc.), CORE (Core-Mark Holding Co., Inc), or SVU (SUPERVALU Inc.). However, investors enjoy investing in SYY for their history of consistent dividends cash payments- recent cash payment amount was $0.36 cents, effective date 10/4/2018)

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

Nasdaq.com,SEC.gov,MSN.com/Money,Zach’s Equity Research

Know Your CEOs: Who is Adena Friedman?

Who Is Adena Friedman?

One powerful woman…

Adena Friedman is the current president and chief financial officer of NASDAQ- the world’s second largest stock exchange in the world. Adena has always been determined to win and achieve excellence in her career, but it took a little work before she reached success.

Education & Career

Raised in the heart of Baltimore, Maryland, Adena attended an all-girls preparatory school at Roland Park Country School and then to Williams College to earn her Bachelor’s degree in political science. After Williams College, she completed her MBA degree at Vanderbilt University’s Owen Graduate School of Management.

Adena started her career journey and worked as an intern as NASDAQ. She then stayed with the company for 18 years before leaving in 2011 to join Carlyle Group L.P.-one of the world’s largest multinational private equity firms. Later on, she returned to NASDAQ as the president in 2014. Adena has been with the corporation ever since.

Personal Life

Her father, Michael Testa, was a managing director of T.Rowe Price for many years. And named after her mother, Adena Testa, is an attorney in a law firm in Baltimore, Maryland.

Related: Who is Jim Umpleby?

She is now 49 years old and married to her husband, Michael Cameron Friedman and has two sons. Adena is not only disciplined and successful in her career, but she is also disciplined as a black belt in Taekwondo.

Adena was listed as #20 out of 100 on the World’s Most Powerful Women by Forbes as well as being the first female CEO of NASDAQ. Congratulations Adena!

About NASDAQ

NASDAQ is the abbreviation for National Association of Security Dealer Automated Quotation system. This corporation is the second largest stock exchange in the world by market capitalization worth $10 trillion. NASDAQ was the world’s first electronic stock market and started trading on February 8th, 1971. The corporation handles approximately 14% of all equities traded worldwide. You may visit NASDAQ.com for extended, updated information on companies traded on the exchange.

Know your CEOs. You may follow her through Twitter:

Check out Adena Friedman (@adenatfriedman): https://twitter.com/adenatfriedman?s=09

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

Forbes.com,Nasdaq.com,Fourtune.com,Wikipedia.com (1)(2)

Alibaba Group Holdings LTD: The International Powerhouse

When “working smarter” pays off.

  • Alibaba is still in the lead as the world’s leading e-commerce corporation.
  • Alibaba has mastered “minority investments” as well as making the right partnerships with the right companies.

BABA (Alibaba Group Holdings Limited,$179.92) is the world’s largest online and mobile e-commerce marke. Headquarters based in Hangzhou and Zhejiang China, BABA has generated $736 billion for the fiscal year (ended March 2018) with over 500 million active monthly users and high revenue from their other businesses such as UCWeb, AutoNavi, Youku, Intime, Caniao Network, Ele.me, Alipay and etc.

The BABA stock is loved by most investors, whether you’re day-trading or buying investments for the long-term, BABA is currently listed at this time as a “strong buy” according to stock analysts.

(Screenshot from Finviz app)

Shareholders are satisfied with their consistently managed financials of even portions of SGA costs (30%) and fair NPM (net profit margin) of 25%. The company’s primary focus is globalization, rural expansion, large data and cloud computing. BABA also have their own strategic strategy for making minority investments as well as making many acquisitions. In April 2018, the company fully acquired Kaiyuan Commerce Co., a leading department store in Northwestern China for RMB of $3.4 billion or $15.36 million in US dollars.

Read: Earnings Week- What To look For In the Next Earnings Report

Acquisitions, Mergers & Investments

BABA has many specialties, yet the company is very skilled with their investment choices. An example of their “minority investments” was announced in their recent 20-F filing:

Beijing Easyhome Furnishing Chain Group Co., Ltd., or Easyhome, a company that operates one of the largest home improvement supplies and furniture chains in China. In March 2018, we acquired a 10% equity interest in Easyhome for a cash consideration of RMB3.6 billion (US$580 million). The business cooperation between Easyhome and us will provide both online and offline customers with a comprehensive home improvement solution.

In early July of 2018, BABA’s Alibaba Cloud and Siemens have partnered to enhance each other’s global digital networks. Siemens is known for their outstanding performance of engineering excellence, quality, and innovation.

Know your CEOs: Who Is Jim Umpleby?

BABA also took a step further and deepened their partnership with SBUX (Starbucks Corporation) this year improve SBUX’s customer base in China with an enhanced the coffee delivery system. President Kevin Johnson stated on behalf fo SBUX,

“Our transformational partnership with Alibaba will reshape modern retail and represents a significant milestone in our efforts to exceed the expectations of Chinese consumers. Starbucks China is one to watch, and I have full confidence in the team that will bring the new innovation behind the Starbucks Experience to life.”

This is nothing but good news for the two power companies.

While some investors believe it’s still fair to buy close to its current 52-week low of $147.50, other investors believe the volatility will weaken after the trade wars calm down. Otherwise, it’s apparent that quality partnerships can strengthen any business.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

Sec.gov,Alibabagroup.com,Yahoo Finance (Starbucks),MSN.com/money