Retire 42% Richer with Lower Management Fees!
The rise of exchange traded funds (ETF) have made the landscape of investment products much more competitive but there are still far too many investors out there paying inappropriately high management fees! Investment products with high management fees can have a detrimental impact on retirement returns as they will diminish the compounding effect of wealth. […]
How a Mean Reversion Strategy Can Take Advantage of Mispriced Stocks
A mean reversion strategy to the stock market can be applied in various ways. Investors can take advantage of mean reversion through value investing or a momentum-based trading strategy. Let’s take a look at mean reversion in this blog post – what it is and how it can be used with a technical analysis approach […]
Qais Zakaria: The Investor Who Outperformed the Market by 800%
A fund called the Nomad Investment Partnership had one of the greatest 13-year runs of all-time. Started by investors Nick Sleep and Qais Zakaria, Nomad went on to return 921.1%. Compared to their benchmark, the MSCI World Index, Nomad beat it by 800%+ (performance of 921.1% vs 116.9%). How did Sleep and “Zak” (Zakaria) do […]
Mature Stocks: Dead Money? Or Safe and Reliable Investments? (2 Examples)
Investors can have strong views about mature stocks; the reality is there are tangible pros and cons to these kinds of investments. In a nutshell, mature stocks refer to companies in the “maturation” phase of their life cycle with slower or saturated growth. Usually, they also have huge profits and size. Mature stocks tend to […]
Warren Buffett’s Dream Investment: See’s Candies
Warren Buffett has bought some great businesses in his career, including Coca-Cola, American Express, and Apple. But his dream business is See’s Candies, the chocolatier from California. See’s Candies provided Buffett with many of the characteristics he looks for in a company, from great returns on capital, small capital needs, moat, and quality management. Buffett […]
What is a Good Number of Stocks to Own?
The number of stocks in a portfolio can have a major influence on your ultimate results as an investor. Because of this, every investor must answer the question: what is a good number of stocks to own? The short answer is that there is no right answer. The much longer answer is that it depends […]
The Meaning of “Fish Where the Fish Are” in Investing
“Fish where the fish are” is a quote by famous investor Charlie Munger to explain the art of value investing. All investors want to buy low, sell high. They want to buy a stock, and sell it some day at a higher price. Taken to the extreme, this core idea represents what value investing is […]
The Top Down Investing Strategy: Pros, Cons, Pitfalls, and a Hybrid Approach
Updated 5/5/2023 Fundamental investing can take two paths: “bottom up” or “top down.” One style of evaluating stocks is not better than the other. In fact, there are different types of both bottom up and top down investing within those main camps. And finally, there’s nothing stating that an investor needs to be either top […]
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, […]
