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 »
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 »
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 »
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 »
A successful invester, as opposed to a trader, does two things well: he identifies a good company from the thousands of companies available, and he chooses the right time to buy and sell. Sounds easy enough doesn’t it? But the ultimate result of this process is very few trades and a lot of patience. Or… Read More »
Honestly I know nothing for sure. But I’ll take a stab at answers you probably would like to know. What Is Nvidia Nvidia is a company that started out making graphics chips and cards for video gaming. Bitcoin miners use Nvidia’s GPUs for mining bitcoin. Nvidia had been having real problems keeping the graphics chips… Read More »
Our stock market as a whole is overvalued. Some individual stocks are undervalued but the market as a whole is overvalued. And guess what happens when the market gets overvalued? It deflates, i.e. goes down. It may not do it right away, it may take years, but it does decline. Now you’re looking at the… Read More »
To me, an oak is a retiree looking mainly for income (as opposed to an acorn just starting out). Generally a retired person should be split between bonds and stocks. 50/50 is a good ratio but some recommend a split of 60% stocks and 40% bonds. I initially thought all bonds would be a good… Read More »
Write for this blog that is. Therapy maybe? I’d like to believe that I’m helping you, my audience, invest better and avoid some of the major pitfalls of investing. I certainly don’t make money doing this. Perhaps I am looking for future riches doing this? Yes, I’m thinking that I might make a little money… Read More »