Let’s start with a little financial market review this week:
- Tesla Shares Surpass $1,000 On Semi Truck Production Memo – Tech Crunch
- Restaurants Parse Extensive And Conflicting Guidance As They Reopen – WSJ
- $410 Million Mega Millions Winning Ticket Sold In Arizona – USA Today
- Jim Cramer: The lesson from Wall Street’s biggest sell-off since March – YouTube
- Dow futures rise more than 100 points as Wall Street tries to recover from its worst day since March – CNBC
- Protesters Pack Seattle City Hall To Demand Mayor’s Resignation – NBC News
Those are the ones that caught my eye. The George Floyd protests were also getting bigger but winding down. If you have a different story of the week please let me know in the comments.
The subjects we were exploring on the blog this past week are as follows:
- I created a video that showed the different ways a company can be evaluated to decide whether it is a buy or not. I had talked earlier about pricing a stock which should be done separately. For instance, you may want to buy a company stock, but the price is high. Then you decide whether overpaying is worth it or whether you should wait.
- We explored Warren Buffett’s quote that his “…favorite holding period is forever.” You should buy stock like you expect to hold it forever and factor that into your decision making.
- We talked about the financial news and how a person can make bad decisions if he or she spends too much time paying attention to it.
- We looked at the UPRO/TMF combo of ETFs (Exchange Traded Funds). Both are triples, meaning the emulate the results of the underlying index times 3. UPRO’s index is the S&P 500 and TMF is long-dated treasury bonds. I recommend against this strategy because of the real risk of a major loss with UPRO.
- We talked about making bigger bets (big bets) within your portfolio, where you outweigh a particular stock that you think has a better chance for big gains. Warren Buffett has used this strategy since the very beginning.
- We talked about gold, and possibly making it part of your portfolio. I recommend against buying gold because the long-term results will probably only keep up with inflation.