Let’s talk a little about diversification. Do you need to diversify to reduce risk or reduce volatility? Let’s talk about risk. Negative risk implies you lose actual money, not just market value. If you own tons of just one stock, you have a real risk that you will lose all of your money, in a… Read More »
I am breaking my rule and talking about a specific stock/company. Nvidia. Today 8/29/2024 Nvidia is down almost 7%. That’s right after it posted its Q2 2025 quarterly results. So is Nvidia a bad company? Far from it. Nvidia is likely to go up “a bunch” in the next year. So should you buy on… Read More »
So the market is up a bunch in the past year, what should you do? Here are my answers: You are retired and drawing upon your savings You should probably already have a balanced portfolio that can weather ups and downs. Not too much in bonds, not too much in stocks, but not so little… Read More »
I haven’t written in a while, sorry about that. For all of you that bought meme stocks, sorry for your losses. For those that have lost 30% or more this year, sorry about that too. Ok, lesson today: For the big picture stuff, nobody fu***** knows anything. Nobody knows if we are going to get… Read More »
I wanted to update something I said before, that you do not intentionally diversify. Personally, I do not diversify among sectors but I do diversify among business models. I still strive to pick the 10 best companies I can, but I try to pick the best of breed company based on business model. For instance,… Read More »
Tomorrow we are closing on a new home we put a contract on back around December 1, 2020. Back then there was a big run up in prices and some home builders were having lotteries to pick who gets to buy their new homes. Our builder was reasonable and didn’t do that. Plus we bought… Read More »
Is exceptional growth boring? Typically yes. Because it means fewer changes, fewer trades, fewer hours of research. But it is so worth it! Do you think you need to trade all the time? Do you think you need to own stock in 50 different companies? You are probably making yourself too busy and hurting your… Read More »
Covid. The Election transition. Christmas. The market sure hates uncertainty, and the virus is getting worse. It will probably continue until we have a good vaccine in enough volume. The election transition looks like it’ll play out until January 20. Hopefully not. With the downturn this year, Christmas shopping season is less than certain. And… Read More »
I thought it might be about time for a quick review of focus investing. Here are the tenants and they are linked to articles describing them in more detail: Check out this article on the reasons to invest. Find ways to save more of your income for emergencies and for investing. Make sure to have… Read More »
Tomorrow is election day in the United States, a good day for discussing information. Information is plentiful these days. Some is truth, and there is only one set of truths, there are no alternate truths. Some information is opinion. Some is an interpretation of what the truth means (spin). And some is downright lies (misinformation).… Read More »