Investing Strategy

  • 01 Jan
    Sunday Edition: Pitfalls & Risks Of Chasing Yields

    Sunday Edition: Pitfalls & Risks Of Chasing Yields

    When the purpose of your investments is to generate useful income, it’s natural to look around at all of the different investment vehicles available to you to find the highest yield for your dollar. The problem is that in today’s economic environment, investment yields work much differently than they did 20 or 30 years ago. More →

  • 28 Dec
    2017 Looks Like Another Excellent Trading Year

    2017 Looks Like Another Excellent Trading Year

    • Rebalancing your portfolio between sectors and markets should lower your risks and increase your returns in 2017.
    • 2016 is an excellent example of how such a strategy works when the general stock market is overvalued.
    • Things like avoiding REITs in August 2016 or entering metals will be easy to spot and act upon, even in 2017.

    Approaching The Current Market Risk Reward Puzzle

    A recent Wall Street Journal article raised the question of whether investors looking to get into the market now are too late for the Dow 20,000 party. Many investors watched the 7-year stock bull market from the side-lines after they got burned during the latest financial crisis and didn’t overcome their anxiety and invest again. The article suggested that investing now is a good thing to do if you are a long-term investor. More →

  • 22 Dec
    Advice On Value Investing In Emerging Markets From Mohnish Pabrai

    Advice On Value Investing In Emerging Markets From Mohnish Pabrai

    • Investing in emerging markets still offers 100-baggers, the problem is that most investors don’t stick with them.
    • Looking for 100-baggers can make your portfolio, but it can’t break it because you can only lose 100% of the investment while the upside is unlimited.
    • Great investments can be found everywhere, you just need to know what to look for.

    Looking Around The World For Value

    It gets harder and harder to find stocks that have positive future business perspectives, a low valuation, and a price to book value that gives you a margin of safety when investing. Therefore, it’s necessary to do some research on such investments at a larger scale, especially in emerging markets. One person who is a specialist on this is Mohnish Pabrai. More →

  • 18 Dec
    Sunday Edition: Looking For Value – Market Heavyweight Or Scrappy Underdog?

    Sunday Edition: Looking For Value – Market Heavyweight Or Scrappy Underdog?

    In sports, there is something incredibly compelling about the underdog that nobody expects to win, but does it anyway. It’s even better when it happens against an opponent that is obviously superior in practically any measurable way. As a fan of sports like football and basketball, I like the playoff after-season, when the best handful of teams battle it out for ultimate supremacy. In particular, I get a kick out of trying to pick out the team that I think everybody is dismissing but could be in just the right place, at the right time to prove them all wrong. True, Cinderella doesn’t often actually get to wear the glass slipper, but boy, is it fun when she does! More →

  • 14 Dec
    How To Make 50% On Your Investments

    How To Make 50% On Your Investments

    • To know a small cap stock in detail and its business environment, you’ll have to invest more of your time than anyone else.
    • Investing while following the 20-punch card rule is extremely difficult, even Buffett didn’t follow it.

    Introduction

    In a 1999 Businessweek interview, Warren Buffett said the following:

    “If I was running $1 million today, or $10 million for that matter, I’d be fully invested. Anyone who says that size does not hurt investment performance is selling. The highest rates of return I’ve ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It’s a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.”

    Most investors invest peanuts, Buffett’s measure for $1 million, so they should all be able to make 50% a year. As in life you mostly get what you ask for, why not ask for 50% yearly returns? You might get it.

    In this article, we’ll discuss what Buffett meant when he said that, as well as a few strategies you could implement to reach 50% returns. More →

  • 12 Dec
    Hold On To Your Cash

    Hold On To Your Cash

    • A market crash will come, likely sooner than later, as this bull market isn’t based on fundamentals.
    • However, it’s equally important to seize the upside as well as protect yourself from the downside.
    • A cash cushion and knowledge about fundamentals is what will give you the best risk reward scenario for your portfolio.

    Introduction

    You might find this strange: talking about a stock market crash while the Dow is above 19,000, the S&P 500 above 2,241, and the Nasdaq largely above 5,300, and revised economic growth at 3.2% all in the midst of a seemingly never-ending bull market. On top of that, 610 Nasdaq and NYSE companies are currently at their 52-week highs while only 14 are at their 52-week lows.

    Nobody can know when this bull market is going to end, but it will end eventually as the fundamentals fueling it aren’t all that strong. More →

  • 11 Dec
    Sunday Edition: Pigs Get Fat – Hogs Get Slaughtered

    Sunday Edition: Pigs Get Fat – Hogs Get Slaughtered

    The saying I’m using for today’s headline gets used in a lot of different settings, so the odds are pretty good that just about everybody has heard it at one time or another. When I started to learn about directional, short-term trading strategies like swing and trend trading, I had this idea drilled into my head to reinforce the mindset that acting quickly on exit signals, especially if I was profitable, was far better than waiting on the mere hope the stock might keep moving in my favor and give me a bigger profit. It was useful to me then because it helped me start to learn and develop the discipline to disconnect my emotions as much as possible from the investments I made. More →

  • 07 Dec
    Want To Be A Better Than Average Investor? Sven Tells You How

    Want To Be A Better Than Average Investor? Sven Tells You How

    • Average investors don’t even make 50% of the market’s return.
    • The stock market looks simple in hindsight, but behavioral issues stop us from doing the right thing. We’ll see how by looking at an example with Wal-Mart.
    • To make market returns you have to do nothing. But to make above market returns, you have to do what others aren’t willing to do.

    Introduction

    According to Dalbar, average investors don’t do as well as the general stock market. In fact, they don’t come even close. More →

  • 01 Dec
    The Chinese Are On A Buying Binge. Will Your Portfolio Benefit?

    The Chinese Are On A Buying Binge. Will Your Portfolio Benefit?

    • Positive long term outlooks, sharp technologies, interesting metals, and strong brands are what the Chinese are looking for.
    • The boom in Chinese acquisitions isn’t expected to stop as economic growth and development continues.
    • The Syngenta AG acquisition offer was made at a valuation over 30.

    Introduction

    We all know China has been growing rapidly in the last 30 years. What many don’t know is that through this growth, China has become the second largest global economy and is expected to become the largest global economy by 2030. More →

  • 30 Nov
    Think You’re Comparing Apples To Apples? Think Again.

    Think You’re Comparing Apples To Apples? Think Again.

    • This article is a warning for novice investors and a reminder for experts.
    • When investing, nothing can be taken as a certainty as all are moving parts, especially financial metrics and prices.
    • Comparing current prices to past prices doesn’t help much, while understanding the fundamentals does.

    Introduction

    Investing shouldn’t be a comparative profession, but that is exactly what we do. We try to find the best stocks by comparing one to others, the best financial vehicle for our investments by comparing the options available, or we compare current prices with those of the past.

    Unfortunately, comparative analysis more often than not gives us poor risk-reward assessments. In this article, we’ll discuss the pitfalls of comparative investing and what can be done to avoid making unnecessary mistakes. More →

1 9 10 11 12 13 14 15 16