Why PriceSmart Inc. Might Finally Be a Buy Again

The Latin American wholesaler reports underwhelming earnings, but that might be good news for investors looking to buy in.

Jul 14, 2014 at 12:07PM

Screen Shot

Source: PriceSmart.

Three years ago, I tabbed Latin American wholesaler PriceSmart (NASDAQ:PSMT) as one of the 10 key stocks I was building my retirement portfolio around. That pick has been rewarded, as it has returned 73%, beating the S&P 500 by about 10 percentage points.

Recently, however, the stock has endured tough times. It has fallen 30% since last December, and the PriceSmart's most recent earnings report disappointed Wall Street. While some might be frustrated by this movement, I've actually expected it. The stock had simply gotten too expensive.

Instead of getting down on the company, I think the most recent price dip actually presents a good entry point for investors. Check out the slideshow below to find out why.

You don't need international stocks to get international exposure
While I think PriceSmart is worth looking into right now, it's important to remember that lots of American companies have plenty of exposure abroad.  Apple is one such company.

It recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Brian Stoffel owns shares of PriceSmart. The Motley Fool recommends PriceSmart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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