I recently wrote about having a reasonable investing plan and how important it is to have one, but It’s even more important to have an investment plan during times of market volatility than in bull markets. If not you may be investing speculatively and be unaware of it. Benjamin Graham once said The greatest dangerContinue reading “How To Avoid Speculative Investing”
Investing in stocks is like farming. There is a time to reap and then there’s a time to sow. It’s a great hobby to partake in if you have patience. That’s why the stock market is not the best place to keep your emergency funds. It’s the same reason why your personal home should notContinue reading “How to develop an income stream”
The reason I hate investing in individual stocks is because at the end of the day there will be winners and there will be losers. All of your individual stock holdings will not win. To win at investing in individual stocks your winners have to outperform your losers. Your winners have to win bigger thanContinue reading “How to choose between passive vs. Active investing”
1. Stocks will likely continue to fall for the next 1 month, 3 months, 6 months or 12 months 2. Stocks will likely hit all time highs again in the next 1 year, 3 years, 5 years or 10 years. 3. If you’re a long term investor and don’t need to touch your cash forContinue reading “Perspective”
It’s not about what price you bought VTI/VTSAX or other similar low cost index fund at. Its about how many shares you have.
I just heard another sad story about someone who lost a lot of their nest egg during the Great Recession and can’t retire until they are 70 years old. This individual is now 60 and trying to figure out how to slow down and still maintain a sufficient salary to meet their goals. This situationContinue reading “Reasonable Investment Plan”
We have six figure mortgages, car loans, student loans and sometimes credit card debt.
I recently read Robert Kiyosaki’s, the author of Rich Dad, Poor Dad, recent article about the seven stages of a financial bubble which was first mentioned in Nobel Laureate Hyman Minsky’s 1982 book titled Can It Happen Again. The seven stages of a financial bubble as Robert Kiyosaki stated in his post are AContinue reading “The Market Cycle”
Preservation of capital is one of the most important rules of investing. Just like the physician’s oath is to do no harm, preservation of capital is the investors oath. Abstaining from negative returns and avoiding loosing it all on bad investments is the golden rule. This is probably the top reason why so many individualsContinue reading “Preservation Of Capital”
I recently read a blog post on investment basecamp blog that addressed the question of how many stocks should an individual investor own. We all know and have heard diversification is the best method to minimize risk in the stock market. Some say diversify across all asset classes including commodities and currencies. According to theContinue reading “How Many Stocks Should You Own?”