To say that I’m always on the lookout for new investing ideas, is something of an understatement. It’s a constant process of discovery, education, and investigation. Every time I pick up a new product in the store, or encounter a new service online, I’m always checking to see if it’s a public company. It’s practically a habit these days to check and see if it’s public…Read more
Compounding. In a word, it’s the “secret sauce” that makes wonderful things like retirement possible. If you want to have enough money to retire someday, you really WANT to compound your money. And there’s no better investment to compound money than common stocks.
Sure, you could stash your savings in a bank account, but at today’s interest rates you won’t be compounding more than a few pennies per month…Read more
Every once in awhile a new investing book (or personal finance book) comes along that gets an incredible amount of attention. It’s on all the best seller lists. Everyone on your Twitter feed is talking about it. Amazon reviewers give it glowing 5-star reviews, and many people you respect and follow are recommending it.
It seems like the book is the best thing since sliced bread.
Any time I see this much positive buzz, I get skeptical. Maybe it’s the contrarian in me, but all that marketing looks like a giant flashing-red warning sign…Read more
If there’s one unsung hero of the personal financial world that needs a medal, I think it should be Hendrik Bessembinder. “Hendrik who?” you’re probably wondering…
Hendrik Bessembinder, is a professor from Arizona State University that researches and studies long-term wealth creation of the stock market. He studies the how part of how the stock market creates wealth…Read more
If you ever meet someone that says “I’ve never made a mistake”, I will happily point out to you a complete liar. Nobody goes through life without making at least a few mistakes.
The trick however, is to not make too many of them. Keep the numbers low (if you can). Do that and you’ll sail through life with relative ease…Read more
If you’re like most people, your annual household spending was down significantly in 2020 because of the pandemic. Saving money must have been on everyone’s mind, because the U.S. savings rate saw massive increases in 2020. By January of 2021, the U.S. savings rate had increased to 20.5%.
That’s certainly a lot of cash being saved! Bank deposits are now at record highs…Read more
As investors, we often hear the siren call of “being a contrarian” — The stories of bucking the trend, buying stocks at low prices, and then reaping incredible gains are the stuff that contrarian dreams are made of. As such, many investors like to fashion themselves as contrarians.
Unfortunately, real life isn’t quite as easy as in the stories — It takes a lot of guts to buy a stock when it’s down at the bottom of a dumpster. During the best of times, making these buy or sell decisions can be tricky…Read more
With plenty of cash on-hand, I’m always on the lookout to add to my existing stock positions… or find new stocks in which to invest. Generally speaking though, I don’t consider myself a “sector” style investor. I don’t buy sector ETF’s or sector index funds… but sometimes the market will put entire sectors on-sale.
It happens because investors take-on a kind of “group think” around certain industries. This lemming-like behavior can sometimes be completely right…Read more
As a perpetual student of the stock market, I’m always keeping tabs on what’s moving and shaking in the world of finance. Lately it’s been a group of stocks I call the “COVID-proof” stocks — Facebook, Amazon, Apple, Netflix, Tesla, Zoom, Microsoft, and Google, that are doing most of the moving and shaking. (Meanwhile, the S&P 500 is almost flat for the year — down a mere 1.4%)
All of these stocks have seen incredible price gains since the market lows of mid-March…Read more