What Kind of Investor Are You? How to Find Investment Ideas
Finding good investment ideas can be difficult, regardless of whether you are a seasoned investor or Warren Buffett. To assist you in finding the next hot stock, a seemingly limitless variety of financial services firms make grand claims. And everyone has that one overly enthusiastic neighbor or cousin constantly pushing the “next big thing.” Avoid […]
Active and Passive Portfolio Management: Pros and Cons [for Average Investors]
Updated: 5/23/2023 There are two major ways to manage an investment portfolio. Active portfolio management means actively buying and selling stocks regularly. Passive portfolio management means passively buying and holding stocks, without much activity. Average investors can also take an active or passive approach. An investor could do passive portfolio management, on a personal level, […]
What is a Quality Company and Why Should I Pay Up?
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” -Warren Buffett Many investors use the above Warren Buffett quotation to describe his investment approach. Buffett now emphasizes investing in high-quality firms and has since stopped purchasing inexpensive, unloved enterprises. He emphasizes his willingness to […]
The 7 Ground Rules for Warren Buffett’s Partnership that Led to 24.5%+ Gains
At a young age of just 25 years old, Warren Buffett had a keen vision on how he would run his partnership and achieve superior returns for investors. He called these principles The Ground Rules. All partners, friends and family had to agree to these terms so they could understand Buffett’s vision. To say that […]
Why Now is a Great Time to Build a Globally Diversified Portfolio
U.S. stock market valuations are beginning to excite me again after this year’s fall of 15.3% from 52-week highs. Even more so, developed markets across the globe are all hurting in the rising interest rate environment with valuations that compare favorably to U.S. markets as this article will explore. Broad European indices trade at 11.6x […]
Stock Buying Checklist: Essential Part of Evaluating Stocks (Example Checklist)
The stock buying checklist is one of the essential tools to any investor, in my opinion, and to most, an underutilized tool. Using a checklist is a fantastic way to learn from your mistakes, plus it can help you standardize your investment process by building on your experience and what you observe throughout your career. […]
The 5 Types of Stock Correlation — With Examples and Calculations
Updated 2/7/2024 “The possibility of permanent loss is the risk I worry about.” Howard Marks, The Most Important Thing Buffett’s rule number one is avoiding the possibility of losing money, and many value investors, including yours, truly subscribe to that idea. One way to determine the riskiness of stocks in your portfolio is to analyze […]
A Free Calculator to Help You Calculate Your Dollar Cost Average Investments!
Updated: 9/07/2023 One of the most beautiful things about dollar cost averaging (or “ratable lump sum investing”) is that you’re buying on a predetermined timeline. The downside of this is that it can make it extremely tough to track your actual cost basis, however…and that’s why I made a free calculator to help! Key Takeaways […]
Bitcoin, Gold, Stocks, or I-Bonds – What is the Best Hedge Against Inflation?
More often than not, inflation is something that isn’t that pertinent to the everyday person, but that’s not the world that we currently live in. When inflation nearly reached 10% in any year, it’s completely valid to freak out a little bit and start looking for the best hedge against inflation. Key Takeaways: Inflation is […]
The Practical, Ideal Holding Period for the Average Investor Explained
Warren Buffett once said, “our favorite holding period is forever”. But is that really true? Should investors plan to hold every stock they buy, forever? Can investors pick the stocks that beat the market, and hold them forever? How many stocks actually beat the market “forever”? These are all questions we will try to answer […]
