Investing

  • 10 Nov
    Following These 4 Rules Will Make You A Millionaire

    Following These 4 Rules Will Make You A Millionaire

    • Becoming a millionaire takes time, and it’s easy to lose focus.
    • I’ll discuss 4 rules that should help you to achieve your long term financial goals.
    • I prefer the option on growth rather than frugality, which is an often shared method of accumulating wealth.



    Introduction

    Today, I’ll discuss four essential rules that will almost guarantee to put you on the path toward becoming a millionaire.

    You may want to retire, achieve financial independence, buy something you’ve always wanted, or simply want to have enough to do what you love. These four rules will get you there. More →

  • 09 Nov
    Margin Of Safety – Is It A Method Or A Mindset?

    Margin Of Safety – Is It A Method Or A Mindset?

    • Many would like the formula for calculating intrinsic value and deriving a margin of safety.
    • I’ll discuss a few issues about the margin of safety that are mostly up to one’s personal preferences.
    • There are also some issues with a margin of safety. It’s not really free.



    Introduction

    I get lots of questions about how to properly value a company, what the best method is to determine intrinsic value, what clear buying signals look like, and especially a lot of questions on the best valuation metrics and financial indicators to use.

    I completely understand where these questions come from as it’s in our nature to simplify things and look for the magic formula that has all the answers, especially in an uncertain environment like financial markets are. However, investing and especially value investing, isn’t that easy. More →

  • 01 Nov
    Are You Saving Enough? Probably Not, Here’s How You Can

    Are You Saving Enough? Probably Not, Here’s How You Can

    • Today, I’ll discuss Thaler’s Save More Tomorrow concept and the behavioral issues that impact how much we save and invest.
    • Secondly, I’ll dig into how much someone is supposed to save and invest to reach a future target.
    • I’ll conclude with this question: are you saving/investing enough?



    Introduction

    Yesterday, we discussed Nobel prize winner professor Richard Thaler’s findings in the field of behavioral finance.

    Thaler’s findings can really help us to lower our investment risks and increasing our returns. However, investing isn’t only about picking the right stock or properly timing a trade, it’s also about carefully allocating our capital in investing in the first place, thus saving for investing. More →

  • 03 Oct
    Good Debt Explained: Why You May Want To Take Out A Loan To Invest

    Good Debt Explained: Why You May Want To Take Out A Loan To Invest



    • Investing isn’t only about choosing the right stocks, it’s also about proper capital allocation.
    • Taking on leverage to invest can be smart but it can also be incredibly dumb.
    • From an historical perspective, it could be a very smart thing to be ready to refinance your home and invest in stocks.

    Introduction

    Buffett and Munger praise themselves for never taking out loans for Berkshire and one of the most famous Buffett quotes is:

    “If you’re smart you don’t need debt, if you are not smart, you better stay far from debt.”

    However, this is another half-truth that he tells the world. More →

  • 04 Sep
    Is It Possible To Time The Market?

    Is It Possible To Time The Market?

    • Accurate market timing would lead to amazing returns, however it’s extremely difficult to actually time the market. I’ll show why.
    • As market timing is difficult, I’ll also show what you can do that will allow you to lower your risk and increase your returns.
    • Focusing on long term underlying earnings will allow you to outperform the market and significantly outperform the average investor.

    Introduction

    The question many investors ask themselves is should they try to time the market.

    This is especially important now that many, including myself, keep shouting about how the market is overvalued.

    I have also discussed scenarios that imply a 70% downside for the S&P 500. Therefore, I understand your concern and I’ll try to provide a valuable answer to the question of market timing in this article. More →

  • 20 Jul
    Sven’s List Of The Five Books Every Investor & Trader Should Read

    Sven’s List Of The Five Books Every Investor & Trader Should Read

    I love books on investing, and find them to be the best possible investment. For just a few bucks, you can get the synthesized knowledge of the most successful investors. On top of that, many also discuss their mistakes, which are an even more valuable source of learning.

    So with that, today I’ll the list the books on my list that I think every investor or trader should read alongside a short commentary. More →

  • 18 Apr
    What’s Better, Trading Or Investing?

    What’s Better, Trading Or Investing?

    • Both trading and investing can lead to satisfying returns, but the important thing is knowing which is best for you.
    • Psychological traits of both successful investors and traders are the same: patience, discipline, rationality, sticking to a well-defined, tested and working strategy, and risk reward calculations.

    Introduction

    I started off investing as a convinced value investor looking for, and investing in, bargains. My way has brought me extremely satisfying returns that, alongside lots of youthful exuberance, made me, quite often, enter into fierce discussions with traders. I would try to convince traders that trading is too risky and they would try to convince me that holding stocks for a long period of time is even riskier. More →