Week In Review 6/14/2020

By | June 14, 2020

Let’s start with a little financial market review this week:

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.

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