You remember the 5 stages of grief? Well these are my 3 stages of investing: Anger So usually when I’m losing money or the market is doing something different than I expect, I get angry. Maybe not angry in a big way, but angry like significantly irritated. Now I know what to do when the… Read More »
If I’m seeing my ideas repeated, does that mean that people are copying me? Or does that mean that a lot of analysts are seeing the same thing? I figure the latter. Here are some highlights of the echo chamber that I hear right now: The market is overvalued The market is at it’s highest,… Read More »
Profit (or earnings) is the amount a business earns over all of its expenses; including taxes and what it pays to the managers. Profit ultimately belongs to the company’s owners, such as stockholders. Usually P/E is what we use to determine a profit percentage. For instance, if P (price) is 100 and E (earnings) is… Read More »
Warren Buffett and Charlie Munger have famously said that you should not diversify. They have also said that diversification should be called di-worse-ification. Other people have said they didn’t mean it. Well, they kind of did. The Right Way To Think Of Diversification You should diversify to prevent “actual loss” rather than “market loss”. Actual… Read More »
Dollar cost averaging is basically something like buying $100 of a mutual fund every month. As the fund goes up, number of shares purchased goes down for a higher per-share price. As the fund goes down the opposite: number of shares purchased goes up for a lower per-share price. Ultimately this leads to having a… Read More »
Here is why you don’t want to generally save cash to deal with a turbulent market. Or at least ideas you should consider as you decide what to do with your savings and investments. Your general return on cash Cash is probably making around 4% in a really good savings account. Which ain’t much. Inflation… Read More »
I have mentioned that you probably want to save cash now because the stock market to GDP is at its highest point, basically ever. It’s scary high. But here are the facts you need to know. You do not need to sell your existing stock holdings I believe there is time before a big decline… Read More »
Sometimes a stock you really like just lays an egg. That’s Mr. Market for you. Stocks of companies will go up and go down for no good reason. Here are some reasons they may go down: The market buys and sells for all kinds of reasons. But as Warren Buffett says: “In the near term… Read More »
Crypto, bipto, bopto. Etherium, you know. There are a lot of them though. The most popular of these is Bitcoin that has been around the longest I believe. If I’m wrong you all can’t tell me anyway. How the heck do you make money from crypto? Today various cryptos have a given value. In the… Read More »
There are a lot of different funds, i.e. ETFs, that trade in a weird way. For instance NVDY makes money by selling options on NVDA… or whatever they do. I’ve never bought NVDY but if I did, I would really understand it. And I guess that’s the point. If you choose to buy any kind… Read More »