Connect with us

Market Insider

PulteGroup Reports Third Quarter 2018 Financial Results

Editor

Published

on

[ad_1]


PulteGroup, Inc. (NYSE: PHM) announced today financial results for its
third quarter ended September 30, 2018. For the quarter, the Company
reported net income of $290 million, or $1.01 per share compared with
prior year net income of $178 million, or $0.58 per share. The higher
net income for the period was primarily the result of a 25% increase in
homebuilding revenues, in combination with a 190 basis point expansion
of operating margin.


“Consistent with our stated strategies, PulteGroup continues to
successfully deliver strong earnings growth, while achieving high
returns on invested capital and equity,” said Company President and CEO,
Ryan Marshall. “By focusing on intelligently growing our business, while
realizing increased operating efficiencies, we leveraged 25% growth in
homebuilding revenues into a 74% gain in earnings to $1.01 per share.”


“The critical underpinnings that have supported a slow but steady
housing recovery, including a strong economy, low unemployment, high
consumer confidence and limited home inventory, remain solidly in
place,” continued Marshall. “While buyer concerns around affordability
and rising mortgage rates appear to have impacted near term market
dynamics, traffic trends indicate that buyer interest levels are still
high and that the overall housing recovery remains on track.”


Third Quarter Results


Home sale revenues for the third quarter increased 25% over the prior
year to $2.6 billion. The higher revenues for the period reflect a 17%
increase in closings to 6,031 homes, combined with a 7%, or $27,000,
increase in average sales price to $427,000.


Home sale gross margin for the third quarter was 24.0%, which is up 10
basis points over the prior year and consistent with the Company’s
reported gross margin for the second quarter of 2018. Homebuilding SG&A
expense for the quarter was $253 million, or 9.8% of home sale revenues,
compared with $237 million, or 11.6% of home sale revenues, in the prior
year. Operating margin for the third quarter expanded 190 basis points
over last year to 14.2%.


Net new orders for the third quarter increased 1% to 5,350 homes. The
value of third quarter net new orders was $2.3 billion, which is an
increase of 1% over the prior year. For the quarter, the Company
operated out of 843 communities compared with 778 communities in the
third quarter of 2017.


Unit backlog for the quarter was up 3% over the third quarter of last
year to 11,164 homes, with backlog value increasing 5% to $4.9 billion.
The average price of homes in backlog increased 2% over the prior year
to $440,000.


Third quarter pretax income for the Company’s financial services
operations increased 10% to $20 million. The increase in pretax income
for the period was driven by higher mortgage origination volumes
resulting from growth in the Company’s homebuilding operations. Mortgage
capture rate for the quarter was 75%, compared with 80% in the prior
year.


During the quarter, the Company repurchased 2.4 million common shares
for $67 million, or an average price of $28.14 per share.


A conference call discussing PulteGroup’s third quarter 2018 results is
scheduled for Tuesday, October 23, 2018, at 8:30 a.m. Eastern Time.
Interested investors can access the live webcast via PulteGroup’s
corporate website at www.pultegroupinc.com.


Forward-Looking Statements


This press release includes “forward-looking statements.” These
statements are subject to a number of risks, uncertainties and other
factors that could cause our actual results, performance, prospects or
opportunities, as well as those of the markets we serve or intend to
serve, to differ materially from those expressed in, or implied by,
these statements. You can identify these statements by the fact that
they do not relate to matters of a strictly factual or historical nature
and generally discuss or relate to forecasts, estimates or other
expectations regarding future events. Generally, the words “believe,”
“expect,” “intend,” “estimate,” “anticipate,” “plan,” “project,” “may,”
“can,” “could,” “might,” “should”, “will” and similar expressions
identify forward-looking statements, including statements related to any
impairment charge and the impacts or effects thereof, expected operating
and performing results, planned transactions, planned objectives of
management, future developments or conditions in the industries in which
we participate and other trends, developments and uncertainties that may
affect our business in the future.


Such risks, uncertainties and other factors include, among other things:
interest rate changes and the availability of mortgage financing;
competition within the industries in which we operate; the availability
and cost of land and other raw materials used by us in our homebuilding
operations; the impact of any changes to our strategy in responding to
the cyclical nature of the industry, including any changes regarding our
land positions and the levels of our land spend; the availability and
cost of insurance covering risks associated with our businesses;
shortages and the cost of labor; weather related slowdowns; slow growth
initiatives and/or local building moratoria; governmental regulation
directed at or affecting the housing market, the homebuilding industry
or construction activities; uncertainty in the mortgage lending
industry, including revisions to underwriting standards and repurchase
requirements associated with the sale of mortgage loans; the
interpretation of or changes to tax, labor and environmental laws,
including, but not limited to the Tax Cuts and Jobs Act which could have
a greater impact on our effective tax rate or the value of our deferred
tax assets than we anticipate; economic changes nationally or in our
local markets, including inflation, deflation, changes in consumer
confidence and preferences and the state of the market for homes in
general; legal or regulatory proceedings or claims; our ability to
generate sufficient cash flow in order to successfully implement our
capital allocation priorities; required accounting changes; terrorist
acts and other acts of war; and other factors of national, regional and
global scale, including those of a political, economic, business and
competitive nature. See PulteGroup’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2017, and other public filings with the
Securities and Exchange Commission (the “SEC”) for a further discussion
of these and other risks and uncertainties applicable to our businesses.
PulteGroup undertakes no duty to update any forward-looking statement,
whether as a result of new information, future events or changes in
PulteGroup’s expectations.


About PulteGroup


PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of
America’s largest homebuilding companies with operations in
approximately 50 markets throughout the country. Through its brand
portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes and
John Wieland Homes and Neighborhoods, the Company is one of the
industry’s most versatile homebuilders able to meet the needs of
multiple buyer groups and respond to changing consumer demand.
PulteGroup conducts extensive research to provide homebuyers with
innovative solutions and consumer inspired homes and communities to make
lives better.


For more information about PulteGroup, Inc. and PulteGroup brands, go to www.pultegroupinc.com;
www.pulte.com;
www.centex.com;
www.delwebb.com;
www.divosta.com
and www.jwhomes.com.










































 

PulteGroup, Inc.

Consolidated Statements of Operations

($000’s omitted, except per share data)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

September 30,

September 30,

2018

 

 

2017

2018

 

 

2017

Revenues:

Homebuilding

Home sale revenues

$

2,572,236

$

2,055,891

$

6,933,888

$

5,606,953

Land sale and other revenues

25,510

 

28,215

 

104,971

 

39,848

 

2,597,746

2,084,106

7,038,859

5,646,801

Financial Services

51,620

 

46,952

 

150,322

 

135,995

 

Total revenues

2,649,366

 

2,131,058

 

7,189,181

 

5,782,796

 

 

Homebuilding Cost of Revenues:

Home sale cost of revenues

(1,954,160

)

(1,564,605

)

(5,276,232

)

(4,332,221

)

Land sale cost of revenues

(22,060

)

(25,123

)

(71,791

)

(115,950

)

(1,976,220

)

(1,589,728

)

(5,348,023

)

(4,448,171

)

 

Financial Services expenses

(32,213

)

(29,304

)

(96,650

)

(86,150

)

Selling, general, and administrative expenses

(252,757

)

(237,495

)

(719,706

)

(689,974

)

Other expense, net

(3,488

)

(6,282

)

(6,753

)

(28,439

)

Income before income taxes

384,688

268,249

1,018,049

530,062

Income tax expense

(95,153

)

(90,710

)

(233,674

)

(160,255

)

Net income

$

289,535

 

$

177,539

 

$

784,375

 

$

369,807

 

 

Per share:

Basic earnings

$

1.01

 

$

0.59

 

$

2.72

 

$

1.18

 

Diluted earnings

$

1.01

 

$

0.58

 

$

2.71

 

$

1.18

 

Cash dividends declared

$

0.09

 

$

0.09

 

$

0.27

 

$

0.27

 

 

Number of shares used in calculation:

Basic

283,489

298,538

285,127

309,453

Effect of dilutive securities

1,183

 

1,690

 

1,301

 

1,861

 

Diluted

284,672

 

300,228

 

286,428

 

311,314

 

 




































 

PulteGroup, Inc.

Condensed Consolidated Balance Sheets

($000’s omitted)

(Unaudited)

 

 

 


September 30,
2018


 

 


December 31,
2017


 

ASSETS

 

Cash and equivalents

$

728,631

$

272,683

Restricted cash

30,381

33,485

Total cash, cash equivalents, and restricted cash

759,012

306,168

House and land inventory

7,489,454

7,147,130

Land held for sale

65,905

68,384

Residential mortgage loans available-for-sale

349,784

570,600

Investments in unconsolidated entities

54,278

62,957

Other assets

797,976

745,123

Intangible assets

130,642

140,992

Deferred tax assets, net

408,029

645,295

$

10,055,080

$

9,686,649

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

Liabilities:

Accounts payable

$

465,833

$

393,815

Customer deposits

342,376

250,779

Accrued and other liabilities

1,251,518

1,356,333

Income tax liabilities

10,324

86,925

Financial Services debt

250,733

437,804

Notes payable

3,005,418

3,006,967

5,326,202

5,532,623

Shareholders’ equity

4,728,878

4,154,026

$

10,055,080

$

9,686,649
















































 

PulteGroup, Inc.

Consolidated Statements of Cash Flows

($000’s omitted)

(Unaudited)

 

 

 

Nine Months Ended

September 30,

2018

 

 

2017

Cash flows from operating activities:

Net income

$

784,375

$

369,807

Adjustments to reconcile net income to net cash from operating
activities:

Deferred income tax expense

230,335

127,856

Land-related charges

13,973

131,254

Depreciation and amortization

36,717

38,689

Share-based compensation expense

21,521

26,505

Other, net

(3,466

)

(1,438

)

Increase (decrease) in cash due to:

Inventories

(263,734

)

(758,006

)

Residential mortgage loans available-for-sale

218,900

173,148

Other assets

(22,117

)

22,120

Accounts payable, accrued and other liabilities

(1,524

)

122,544

 

Net cash provided by (used in) operating activities

1,014,980

 

252,479

 

Cash flows from investing activities:

Capital expenditures

(46,529

)

(23,548

)

Investments in unconsolidated entities

(1,000

)

(22,007

)

Other investing activities, net

15,545

 

5,788

 

Net cash provided by (used in) investing activities

(31,984

)

(39,767

)

Cash flows from financing activities:

Repayments of debt

(82,655

)

(7,001

)

Borrowings under revolving credit facility

1,566,000

971,000

Repayments under revolving credit facility

(1,566,000

)

(888,000

)

Financial Services borrowings (repayments)

(187,071

)

(85,797

)

Debt issuance costs

(8,165

)


Stock option exercises

5,462

22,765

Share repurchases

(179,439

)

(665,812

)

Dividends paid

(78,284

)

(86,018

)

Net cash provided by (used in) financing activities

(530,152

)

(738,863

)

Net increase (decrease) in cash, cash equivalents, and restricted
cash

452,844

(526,151

)

Cash, cash equivalents, and restricted cash at beginning of period

306,168

 

723,248

 

Cash, cash equivalents, and restricted cash at end of period

$

759,012

 

$

197,097

 

 

Supplemental Cash Flow Information:

Interest paid (capitalized), net

$

16,747

 

$

11,516

 

Income taxes paid, net

$

88,544

 

$

17,206

 

 







































 

PulteGroup, Inc.

Segment Data

($000’s omitted)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

September 30,

September 30,

2018

 

 

2017

2018

 

 

2017

HOMEBUILDING:

Home sale revenues

$

2,572,236

$

2,055,891

$

6,933,888

$

5,606,953

Land sale and other revenues

25,510

 

28,215

 

104,971

 

39,848

 

Total Homebuilding revenues

2,597,746

2,084,106

7,038,859

5,646,801

 

Home sale cost of revenues

(1,954,160

)

(1,564,605

)

(5,276,232

)

(4,332,221

)

Land sale cost of revenues

(22,060

)

(25,123

)

(71,791

)

(115,950

)

Selling, general, and administrative expenses (“SG&A”)

(252,757

)

(237,495

)

(719,706

)

(689,974

)

Other expense, net

(3,714

)

(6,420

)

(7,263

)

(28,832

)

Income before income taxes

$

365,055

 

$

250,463

 

$

963,867

 

$

479,824

 

 

FINANCIAL SERVICES:

Income before income taxes

$

19,633

 

$

17,786

 

$

54,182

 

$

50,238

 

 

CONSOLIDATED:

Income before income taxes

$

384,688

 

$

268,249

 

$

1,018,049

 

$

530,062

 

 

 

OPERATING METRICS:

Gross margin % (a)(b)

24.0

%

23.9

%

23.9

%

22.7

%

SG&A % (a)

(9.8

)%

(11.6

)%

(10.4

)%

(12.3

)%

Operating margin % (a)

14.2

%

12.3

%

13.5

%

10.4

%

 


(a) As a percentage of home sale revenues.


 


(b) Gross margin equals home sale revenues minus home sale cost
of revenues.


 













































 

PulteGroup, Inc.

Segment Data, continued

($000’s omitted)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

September 30,

September 30,

2018

 

 

2017

2018

 

 

2017

 

Home sale revenues

$

2,572,236

$

2,055,891

$

6,933,888

$

5,606,953

 

Closings – units

Northeast

350

318

1,002

846

Southeast

1,101

966

3,097

2,751

Florida

1,241

897

3,262

2,639

Midwest

1,014

1,001

2,653

2,576

Texas

1,114

927

3,019

2,809

West

1,211

1,042

3,365

2,799

6,031

5,151

16,398

14,420

Average selling price

$

427

$

399

$

423

$

389

 

Net new orders – units

Northeast

353

316

1,251

1,103

Southeast

948

1,044

3,300

3,314

Florida

1,173

991

3,964

3,121

Midwest

823

868

2,980

3,119

Texas

1,005

881

3,511

3,281

West

1,048

1,200

3,560

3,883

5,350

5,300

18,566

17,821

Net new orders – dollars

$

2,278,357

$

2,260,082

$

7,866,177

$

7,331,311

 

Unit backlog

Northeast

761

644

Southeast

1,919

1,934

Florida

2,380

1,900

Midwest

1,814

1,850

Texas

1,918

1,884

West

2,372

2,611

11,164

10,823

Dollars in backlog

$

4,911,353

$

4,665,871

 

















 

PulteGroup, Inc.

Segment Data, continued

($000’s omitted)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

September 30,

September 30,

2018

 

 

2017

2018

 

 

2017

MORTGAGE ORIGINATIONS:

Origination volume

3,692

 

3,428

 

10,319

 

9,631

 

Origination principal

$

1,138,389

 

$

1,002,108

 

$

3,170,206

 

$

2,778,151

 

Capture rate

75.0

%

79.6

%

76.0

%

79.5

%

 

















 

Supplemental Data

($000’s omitted)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

September 30,

September 30,

2018

 

 

2017

2018

 

 

2017

 

Interest in inventory, beginning of period

$

243,627

$

212,850

$

226,611

$

186,097

Interest capitalized

42,743

46,077

130,474

135,949

Interest expensed

(43,583

)

(36,381

)

(114,298

)

(99,500

)

Interest in inventory, end of period

$

242,787

 

$

222,546

 

$

242,787

 

$

222,546

 

 

[ad_2]

Source link

قالب وردپرس

Market Insider

4 things kids need to know about money

Editor

Published

on

By

(NC) Responsible spending includes knowing the difference between wants and needs. Back-to-school season, with added expenses and expectations around spending, is the perfect time to not only build your own budget for the year ahead, but also to introduce your own children to the concept of budgeting.

The experts at Capital One break down four basic things that every child should know about money, along with tips for bringing real-life examples into the conversation.

What money is. There’s no need for a full economic lesson,but knowing that money can be exchanged for goods and services, and that the government backs its value, is a great start.
How to earn money. Once your child understands what money is, use this foundational knowledge to connect the concepts of money and work. Start with the simple concept that people go to work in exchange for an income, and explain how it may take time (and work) to save for that new pair of sneakers or backpack. This can help kids develop patience and alleviate the pressure to purchase new items right away that might not be in your budget.
The many ways to pay. While there is a myriad of methods to pay for something in today’s digital age, you can start by explaining the difference between cash, debit and credit. When teaching your kids about credit, real examples help. For instance, if your child insists on a grocery store treat, offer to buy it for them as long as they pay you back from their allowance in a timely manner. If you need a refresher, tools like Capital One’s Credit Keeper can help you better understand your own credit score and the importance of that score to overall financial health.
How to build and follow a budget. This is where earning, spending, saving and sharing all come together. Build a budget that is realistic based on your income and spending needs and take advantage of banking apps to keep tabs on your spending in real-time. Have your kids think about how they might split their allowance into saving, spending and giving back to help them better understand money management.

Continue Reading

Market Insider

20 Percent Of Americans In Relationships Are Committing Financial Infidelity

Editor

Published

on

By

Nearly 30 million Americans are hiding a checking, savings, or credit card account from their spouse or live in partner, according to a new survey from CreditCards.com. That’s roughly 1 in 5 that currently have a live in partner or a spouse.

Around 5 million people — or 3 percent — used to commit “financial infidelity,” but no longer do.

Of all the respondents, millennials were more likely than other age groups to hide financial information from their partner. While 15 percent of older generations hid accounts from their partner, 28 percent of millennials were financially dishonest.

Regionally, Americans living in the South and the West were more likely to financially “cheat” than those living in the Northeast and Midwest.

Insecurity about earning and spending could drive some of this infidelity, according to CreditCards.com industry analyst Ted Rossman.

When it comes to millennials, witnessing divorce could have caused those aged 18-37 to try and squirrel away from Rossman calls a “freedom fund”.

“They’ve got this safety net,” Rossman said. They’re asking: “What if this relationship doesn’t work out?”

As bad as physical infidelity

More than half (55 percent) of those surveyed believed that financial infidelity was just as bad as physically cheating. That’s including some 20 percent who believed that financially cheating was worse.

But despite this, most didn’t find this to be a deal breaker.

Over 80 percent surveyed said they would be upset, but wouldn’t end the relationship. Only 2 percent of those asked would end the relationship if they discovered their spouse or partner was hiding $5,000 or more in credit card debt. That number however is highest among those lower middle class households ($30,000-$49,999 income bracket): Nearly 10 percent would break things off as a result.

Roughly 15 percent said they wouldn’t care at all. Studies do show however that money troubles is the leading cause of stress in a relationship.

That’s why, Rossman says, it’s important to share that information with your partner.

“Talking about money with your spouse isn’t always easy, but it has to be done,” he said. “You can still maintain some privacy over your finances, and even keep separate accounts if you and your spouse agree, but you need to get on the same page regarding your general direction, otherwise your financial union is doomed to fail.”

With credit card rates hovering at an average of 19.24 percent APR, hiding financial information from a partner could be financially devastating.

But, Rossman adds, it’s not just about the economic impact but also the erosion of trust.

“More than the dollars and cents is that trust factor,” he said. “I think losing that trust is so hard to regain. That could be a long lasting wedge.”

Kristin Myers is a reporter at Yahoo Finance. Follow her on Twitter.

Source link

قالب وردپرس

Continue Reading

Market Insider

7 Examples Of Terrible Financial Advice We’ve Heard

Editor

Published

on

By

Between television, radio, the internet and well-meaning but presumptuous friends and family, we’re inundated with unsolicited advice on a daily basis. And when it comes to money, there’s a ton of terrible advice out there. Even so-called experts can lead us astray sometimes.

Have you been duped? Here are a few examples of the worst money advice advisers, bloggers and other personal finance pros have heard.

1. Carry a balance to increase your credit score.

Ben Luthi, a money and travel writer, said that a friend once told him that his mortgage loan officer advised him to carry a balance on his credit card in order to improve his credit score. In fact, the loan officer recommended keeping the balance at around 50 percent of his credit limit.

“This is the absolute worst financial advice I’ve ever heard for several reasons,” Luthi said. For one, carrying a credit card balance doesn’t have any effect on your credit at all. “What it does do is ensure that you pay a high interest rate on your balance every month, neutralizing any other benefits you might get from the card,” Luthi explained. “Also, keeping a 50 percent credit utilization is a surefire way to hurt your credit score, not help it.”

Some credit experts recommend keeping your balance below 30 percent of the card limit, but even that’s not a hard-and-fast rule. Keeping your balance as low as possible and paying the bill on time each month is how you improve your score.

2. Avoid credit cards ― period.

Credit cards can be a slippery slope for some people; overspending can lead to a cycle of debt that’s tough to escape.

But avoiding credit cards on principle, something personal finance gurus like Dave Ramsey push hard, robs you of all their potential benefits.

“Credit cards are a good tool for building credit and earning rewards,” explained personal finance writer Kim Porter. “Plus, there are lots of ways to avoid debt, like using the card only for monthly bills, paying off the card every month and tracking your spending.”

If you struggle with debt, a credit card is probably not for you. At least not right now. But if you are on top of your finances and want to leverage debt in a strategic way, a credit card can help you do just that.

3. The mortgage you’re approved for is what you can afford.

“The worst financial advice I hear is to buy as much house as you can afford,” said R.J. Weiss, a certified financial planner who founded the blog The Ways to Wealth. He explained that most lenders use the 28/36 rule to determine how much you can afford to borrow: Up to 28 percent of your monthly gross income can go toward your home, as long as the payments don’t exceed 36 percent of your total monthly debt payments. For example, if you had a credit card, student loan and car loan payment that together totaled $640 a month, your mortgage payment should be no more than $360 (36 percent of $1,000 in total debt payments).

“What homeowners don’t realize is this rule was invented by banks to maximize their bottom line ― not the homeowner’s financial well-being,” Weiss said. “Banks have figured out that this is the largest amount of debt one can take on with a reasonable chance of paying it back, even if that means you have to forego saving for retirement, college or short-term goals.”

4. An expensive house is worth it because of the tax write-off.

Scott Vance, owner of taxvanta.com, said a real estate agent told him when he was younger that it made sense to buy a more expensive house because he had the advantage of writing off the mortgage interest on his taxes.

But let’s stop and think about that for a moment. A deduction simply decreases your taxable income ― it’s not a dollar-for-dollar reduction of your tax bill. So committing to a larger mortgage payment to take a bigger tax deduction still means paying more in the long run. And if that high mortgage payment compromises your ability to keep up on other bills or save money, it’s definitely not worth it.

“Now, as a financial planner focusing on taxes, I see the folly in such advice,” he said, noting that he always advises his client to consider the source of advice before following it. ”Taking tax advice from a Realtor is … like taking medical procedure advice from your hairdresser.”

5. You need a six-month emergency fund.

One thing is true: You need an emergency fund. But when it comes to how much you should save in that fund, it’s different for each person. There’s no cookie-cutter answer that applies to everyone. And yet many experts claim that six months’ worth of expenses is exactly how much you should have socked away in a savings account.

“I work with a lot of Hollywood actors, and six months won’t cut it for these folks,” said Eric D. Matthews, CEO and wealth adviser at EDM Capital. “I also work with executives in the same industry where six months is overkill. You need to strike a balance for your work, industry and craft.”

If you have too little saved, a major financial blow can leave you in debt regardless. And if you set aside too much, you lose returns by leaving the money in a liquid, low-interest savings account. “The generic six months is a nice catch-all, but nowhere near the specific need of the individual’s unique situation… and aren’t we all unique?”

6. You should accept your entire student loan package.

Aside from a house, a college education is often one of the biggest purchases people make in their lifetimes. Often loans are needed to bridge the gap between college savings and that final tuition bill. But just because you’re offered a certain amount doesn’t mean you need to take it all.

“The worst financial advice I received was that I had to accept my entire student loan package and that I had no other options,” said Gina Zakaria, founder of The Frugal Convert. “It cost me a lot in student loan debt. Now I tell everyone that you never have to accept any part of a college financial package that you don’t want to accept.” There are always other options, she said.

7. Only invest in what you know.

Even the great Warren Buffett, considered by many to be the best investor of all time, gets it wrong sometimes. One of his most famous pieces of advice is to only invest in what you know, but that might not be the right guidance for the average investor.

In theory, it makes sense. After all, you don’t want to tie up your money in overly complicated investments you don’t understand. The problem is, most of us are not business experts, and it’s nearly impossible to have deep knowledge of hundreds of securities. “Diversification is key to a good portfolio, and investing in what you know leads to a very un-diversified portfolio,” said Britton Gregory, a certified financial planner and principal of Seaborn Financial. “Instead, invest in a well-diversified portfolio that includes many companies, even ones you’ve never heard of.”

That might mean enlisting the help of a professional, so make sure it’s one who has your best interests at heart.

Source link

قالب وردپرس

Continue Reading

Chat

Trending