The world of equities consists of fuel generators and fuel suckers. I use this terminology to describe the types of companies that either fuel or hamper wealth creation. Both categories include companies that: distribute no dividend, or that have unimpressive dividend metrics; and have alluring dividend metrics. This is why it is so important to [...]

  Morgan Housel’s The Psychology of Money – Timeless Lessons on Wealth, Greed, and Happiness is one of the thought-provoking books listed in the Books section of this site. Chapter 4 entitled Confounding Compounding touches upon why compounding can be difficult. The counter-intuitiveness of compounding may be responsible for the majority of disappointing trades, bad [...]

In times like this, it is no surprise many investors are experiencing some trepidation. Let them panic. You, however, should proceed knowing that corrections are healthy. Allow me to take you back in time to the mid-1970s when I was in high school. Several (most) of my high school courses never interested me. I never [...]

One of the books listed in the Books section of this blog is Peter L. Bernstein's Against the Gods: The Remarkable Story of Risk. In this book, Bernstein delves into the importance of risk assessment. It traces developments from ancient times to the modern financial era and emphasizes the critical role of risk assessment in [...]

Investing is difficult unless you master your mindset. The math component of the investing process is not what makes investing difficult. The difficulty lies in our ability/inability to control our emotions. Investing requires us to understand how we react in various situations. After having invested for almost 4 decades, I distill my approach to investing [...]

I now pay considerably more attention to the tax implications of my investment decisions. Gone are the days where I looked forward to receiving dividend income. Our circumstances may differ, and therefore, my decision to significantly reduce dividend income may not align with your objectives. Furthermore, the tax treatments of different forms of investment income [...]

In my recent Tips To Achieve Investment Success post, I touch upon why it is important to think like an owner when investing. Shares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner. - Warren Buffett Many shareholders totally miss the [...]

As a follow up to my Investing Should be Like Watching Paint Dry post, this post provides tips to achieve investment success. Success, however, can be as much about what to do as it is what not to do because our emotions lead us to make decisions that are not always rational. The following are [...]

I firmly believe investing should be like watching paint dry. Investing before the advent of the internet was cumbersome. In the 1960s and early 1970s, I remember my parents receiving share certificates which they would deposit in a safety deposit box at the bank. In late 2020, one of my tasks as their Executor was [...]

  The impact of brain health on our finances is a follow up to my February 5 Setting Financial Goals: Your Path To Financial Freedom post in which I use the analogy of physical exercise challenges when it comes to setting objectives and goals. Shortly after composing that post I stumbled upon a presentation entitled [...]