STOCK TO STUDY: T. Rowe Price Group, Inc ... - BetterInvesting

More documents

Recommendations

Info

INVESTMENT CLUBS | The Clubhouse The BetterInvesting Family Massachusetts Scientist Practices ‘Invest in What You Know’ Theory Chemist’s Found the Formula for Investing by Angele McQuade Forty-two-year-old BetterInvesting member Lin Xu, of Lexington, Mass., began investing at the age of 37, when the company he worked for offered its employees stock options and restricted stock. “I did not know how to handle them,” he recalls. “When I should sell and when I should keep? It appeared to me that investment cannot be avoided in life, so I started to pay attention to it.” Originally from China, Lin completed his Ph.D. in chemistry in Canada, then joined Merck & Co. as a research scientist in 2004. “Since then, I’ve been building my career in the pharmaceutical area. My wife, Ping Zhou, and I have two sons, Allen and Brendan. We enjoy our life in New England and go camping near the beach or White Mountain every summer.” Lin first learned about BetterInvesting from one of legendary investor Peter Lynch’s books. He attended BetterInvesting’s National Convention for the first time in 2012 and was impressed by how many members were willing to share their knowledge and investment experience. “I am involved in BI’s Massachusetts Chapter,” he says, “and I hope one day BINC will be held in New England with a focus on investing in biotech/pharmaceuticals. Since most of my friends and co-workers here in the Boston area are in the same field, we often discuss the investment potential and risk in biotech.” Lin currently invests in individual stocks in both IRA Outdoor Enthusiasts. BetterInvesting mem ber Lin Xu, his wife, Ping Zhou, and sons Allen and Brendan enjoy camping. and nonretirement accounts and gets many ideas nearby. “Since I work in biotech and many biotech companies are located in Boston, I get initial ideas and research from local meetings and news,” he says. “When I notice a biotech company starting to hire employees or expand sales representatives, I start to research the company to understand its current progress. This helps me find good companies to invest in.” Lin also looks online for more information; his two favorite websites for researching biotech stocks are Eval - uate Pharma and Seeking Alpha. “The first is the corporate site for evaluating pharmaceutical companies. The second has comments from other investors and also transcripts of corporate financial meetings, which are valuable for understanding a company’s business strategy.” Lynch is one of Lin’s favorite investors. “I like to follow his investment philosophy,” Lin says. “He focuses on the long term, looking for fundamentals and finding companies with a niche.” Lin even emulates Lynch’s “invest in what you know” recommendation by doing retail re - search at the Burlington (Mass.) Mall, Lynch’s past research haunt and conveniently located only two miles away from the Xu family home. Angele McQuade is the author of two books, including Investment Clubs for Dummies. Know a BetterInvesting member or club Angele should profile? Email her at angemcquade@gmail.com. Club Accounting Continued from page 19 and long-term gains. The total for each subtype of gain, such as “1099 reported basis short-term gains,” is transferred to the updated Schedule D. Schedule D now has entry lines for each of the check box options from Form 8949 in the short-term and longterm gains sections. Schedule D now also includes a summary of each of the different 8949s, plus totals for short-term and long-term gains. The added complexity doesn’t stop here. The IRS realized the cost basis calculated by the broker may not coincide with the cost basis in the customer’s records. To account for this, Form 8949 has a column to show an adjustment for these differences. Form 8949 should report the broker’s reported cost basis, not the taxpayer’s if the broker reported a basis. The adjustment column will show any difference between the reported broker’s basis and the club’s basis. If you sold a company that was in - volved in a spinoff at any time you held it or a transaction that generated fractional shares, there’s an increased likelihood your cost basis will differ from the broker’s. Fortunately, ICLUBcentral’s 2012 Tax Printer is adjusting to these changes. Run ning the software will require slightly more input, as it’ll need the broker’s reported gain from 1099s, whether cost basis wasn’t re - ported, or if no 1099 was received for a particular sale. 20 | BetterInvesting | March 2013
New Year’s Resolutions Make Better Stock Picks This Year with BetterInvesting’s Introduction to the Stock Selection Guide The beginning of a New Year is the perfect time to learn how to use BetterInvesting's time-tested Stock Selection Guide methodology to warm up your portfolio with high-quality growth stocks. Trusted by millions of investors since 1951, the SSG makes it easy to confidently conduct your own stock research and make more informed, successful decisions. Learn Time-Tested Methods for Finding and Analyzing Quality Growth Stocks Start the New Year With a 5-Part Online Class Series Beginning in February Live Online Classes (Includes Practice Activities & Materials) Class 1: Selecting the Best Companies Thursday, February 7, 2013 • 8:30 PM Class 2: Determining a Fair Price Thursday, February 21, 2013 • 8:30 PM Class 3: Estimating Future Growth Thursday, February 28, 2013 • 8:30 PM Class 4: Estimating Future P/Es Thursday, March 7, 2013 • 8:30 PM Class 5: Review/Q&A Wrap-up Wednesday, March 13, 2013 • 8:30 PM This series includes 4 online classes plus an interactive review session to help new investors learn how to use and complete the Stock Selection Guide (SSG), BetterInvesting’s premier stock anal - ysis tool. Each session is recorded and may be accessed on your My Classes page. Students have access to all the recordings until July. Get the Entire Course for Just $40 $60 Members Non-Members Register Now at www.BetterInvesting.org/IntroSSG or 877.275.6242
Page 1 and 2: STOCK TO STUDY: T. Rowe Price Group
Page 4 and 5: CONTENTS | BetterInvesting | March
Page 6 and 7: Editorial For Long-Term Investors,
Page 8 and 9: From the CEO Kamie Zaracki Intervie
Page 10 and 11: PERSONAL FINANCE | Web Watch | Due
Page 12 and 13: PERSONAL FINANCE | Due Diligence |
Page 14 and 15: PERSONAL FINANCE | Financial Planne
Page 16 and 17: INVESTMENT CLUBS | Repair Shop ‘E
Page 18 and 19: INVESTMENT CLUBS | Repair Shop cent
Page 20 and 21: INVESTMENT CLUBS | The Clubhouse De
Page 24 and 25: STOCK TO STUDY | Featured Company I
Page 26 and 27: STOCK TO STUDY | Featured Company
Page 28 and 29: STOCK TO STUDY | The Stock Selectio
Page 30 and 31: STOCK TO STUDY | Featured Company 2
Page 32 and 33: UNDERVALUED | Featured Company Amer
Page 34 and 35: STOCKS | Growth Stocks Colgate Is S
Page 36 and 37: Empowering Investors Since 1951 tim
Page 38 and 39: DISCUSSION & ANALYSIS | Between the
Page 40 and 41: DISCUSSION & ANALYSIS | Random Walk
Page 42 and 43: FEATURE | Cover Story by Danielle L
Page 44 and 45: FEATURE | Cover Story Titles such a
Page 46 and 47: MUTUAL FUNDS | Mutual Fund Matters
Page 48 and 49: MEMBERSHIP | First Cut Fundamentals
Page 50 and 51: MEMBERSHIP | Chapter Contacts In th
Page 52 and 53: MEMBERSHIP | Chapter Contacts NEVAD
Page 54: MEMBERSHIP | Performance Review Big

STOCK TO STUDY: T. Rowe Price Group, Inc ... - BetterInvesting

Create successful ePaper yourself

Delete template?

Save as template?