• 09 Jan
    Sven Thinks You Can Be A Millionaire & Tells You How To Get There

    Sven Thinks You Can Be A Millionaire & Tells You How To Get There

    • Investing for the long term isn’t hard and if you avoid doing stupid things, you should expect to be a millionaire when you retire or likely even sooner.
    • Maximize your IRA as it isn’t taxed.
    • Beating the market by a few percentage points leads to staggering differences in 30 years.


    People usually wonder how much money they should put aside and invest in stocks. Should it be 5%, 10% or 15% of your income? Should you put any lump sums into the stock market or not?

    As most of us don’t have clear plans and goals, what happens is that investors invest more when they should invest less and nothing at all when they should go all-in.

    Today’s article will describe the expected end result from investing in stocks, how much your investments will return on average, and how to create a stable strategy in order to not make costly mistakes. 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 →

  • 23 Dec
    The Dow To Hit 20,000 Alongside A Strong Dollar, Time To Be Greedy?

    The Dow To Hit 20,000 Alongside A Strong Dollar, Time To Be Greedy?

    • Investors can expect a nominal return from stocks of 4.3% per year going forward.
    • The story looks far different for speculators. The strong dollar and higher debt costs should weigh on the economy and stocks.
    • Specific sectors and international diversification offer a better risk reward situation.


    The Dow Jones is flirting with 20,000 points, and it’s possible that by the time you’re reading this, it has already crossed the mark.

    In addition to the Dow reaching all-time highs, the dollar index has also reached new highs for the decade. 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 →

  • 09 Dec
    Check Your Dividend Yielders Before It’s Too Late

    Check Your Dividend Yielders Before It’s Too Late

    • Higher interest rates will increase required returns while higher debt costs will lower available cash for dividends.
    • However, things vary extremely among sectors so check your portfolio stock by stock.
    • The current 5% shareholder yield is unsustainable with aggregate earnings yielding 3.93%.


    Things are changing!

    We have been enjoying a period where yielders were in high demand as interest rates declined. However, there are two things that will have a severe impact on dividends and asset prices. The first is that low interest rates enabled companies to take on more debt and increase their return to shareholders while keeping their interest expenses low. The second is that with the Fed about to increase interest rates and the yield on the 10-year treasury note up 75% from its July low, the value of your dividend yielders is also about to collapse because stocks simply carry more risk than treasuries. More →

  • 08 Dec
    Brazilian Investment Opportunities

    Brazilian Investment Opportunities

    • Many stocks in Brazil have the potential to double in 2017, but they also have the potential to lose 50%.
    • We’ll briefly describe investment opportunities and our approach to the research.
    • Emerging market volatility should be considered a great thing, not a risk.

    Investing Rationale

    Monday we discussed the current situation in South America. Reading the article, available here, will give you a good intro into what we’ll discuss today.

    The source of our long-term investment ideas comes from constant research on macro trends. These ideas are bound to benefit from positive economic, demographic, and political environments. 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.


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

  • 05 Dec
    A Look At Opportunities In South America

    A Look At Opportunities In South America

    • Intensified selling is making emerging markets an interesting opportunity, will selling get to January levels?
    • Brazil has to be watched, of course, but Argentina has too much political risk for rational decisions to be made.
    • Chile is stable, but PE ratios are also much higher.


    After Trump was elected, many emerging markets were hit as a result of a growing negative sentiment toward their performance amidst tougher global trade.

    It’s great when prices go down as it allows you to buy stocks at better prices, if you don’t own too much of the stock, of course. The truth is that many businesses won’t be affected by Trump’s decisions, so it’s a good time to shop around.

    Today we’ll take a look at opportunities in South America. 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.


    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 →

  • 23 Nov
    How To Make Activist Investors Work For You

    How To Make Activist Investors Work For You

    • We’ll analyze the scientific data that explains how activists effect returns.
    • Activism increases returns, but you can increase your returns without paying the 2/20 fees.
    • There is enough time from the first activist announcement to actual fundamentals improving to carefully analyze the investment and make an appropriate decision.

    Activist Investors

    Activists open a position in a company that is large enough to enable putting pressure on management, more often than not in a public way. They put pressure on management because they believe that the company is mismanaged and value can be unlocked through changes in corporate policies, acquisitions, divestments, better use of cash, larger dividends, cost-cutting, better financing options, etc. More →

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