Pro forma earnings (sometimes spelled “proforma” or “pro-forma”) are included by some companies in their quarterly or annual reports as a way to discount “unusual and non-recurring transactions” to more accurately reflect their true financial health. But while actual earnings are calculated using Generally Accepted Accounting Principles (“GAAP”), the US standard for corporate accounting, pro forma earnings are used as guidance for investors to demonstrate how much money a company would have earned had unusual and one-time charges not occurred. As one would expect, pro forma reporting has had a history of abuse and therefore should be approached with great care.

Ramit Sethi from www.iwillteachyoutoberich.com proposes a financial makeover for 2006. And I give updates on SIRI, AMD, and YHOO.

There’s a very important topic that I’d like to discuss briefly here, and it’s in regards to starting your own business. Fundamentally, a business is an investment. Any company’s goal is to generate profits for its owners, and in the case of a small business, a salary as well. The problem with businesses is that they’re a job. And not only are they a job, they also cause a lot of stress and a generally poor social life during the initial years.

Real estate has always been a passion of mine. …

Last week, we introduced 401(k) retirement plans and focused on their main two benefits:

1. Tax Benefits.
2. Employer Match

This week we’ll close out the discussion with a little talk on Roth 401(k)s and some tips for choosing Funds inside your 401(k).

Monday Reading
Mark Cuban has written some interesting articles on investing. I think they’re a good read; it’s not the typical stuff you would hear from other investing pundits.
- My Investment Advice for 2006

- The Stock Market is for Suckers
- Long Tail of Investing
Main takeaways:
- When you buy stock, someone is selling it to you. Why is that someone selling it? Are they really dumber than you are?
- Instead of trying to make better investments, you might do better by spending your time trying to reduce your expenses. Saving $100 per …

For most people, the 401(k) savings plan offered by their employer is the first investment worth making. This article is meant to introduce you to the 401(k), why it’s often a good deal, and how to get started.

Frank bought me The Only Investment Guide You’ll Ever Need by Andrew Tobias for Christmas, which finally arrived at my doorstep on Saturday. With the assistance of Tobias’ great sense of humor, it’s a quick and enjoyable read. The book provides sound advice on when it’s appropriate for people to begin considering their investment options, and what those options are.

First, my apologies to those of you who are not geeks (and just wish you were).
Because… it’s a good time to be a geek. Tech stocks are performing well, and there is no one better to take advantage of this rally than fellow geek investors like you. Even the NASDAQ is back with a vengeance.
There is a lot of talk these days about a new tech stock rally. Below are just a few of the reasons tech stocks are getting so much attention these days.

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I’ve spent a lot of time in the past week working with the Morningstar Premium Fund Screener, a tool used to search for mutual funds based on filtering criteria. Think of a screener as both a search engine and a pair of blinders. Not only will it help you discover new funds but it will also keep you away from funds that may post high short-term results but have a lot of inherent risks.

This screener is the best I’ve seen for mutual funds and in addition to access to Morningstar …