The Importance Of Margin Of Safety

Given the current market conditions in which the likes of Robinhood have helped turn the stock market into a casino, I find it to be invaluable to re-read The Intelligent Investor by Benjamin Graham. I highly recommend Chapter 20 which covers the importance of margin of safety. Chief Hazard Of A Buyer Of Securities The [...]

By |May 2nd, 2021|General Investing|Comments Off on The Importance Of Margin Of Safety

Charlie Munger’s 13 Personal Attributes To Improve Investment Success

When I retired early a few years ago I had visions of being able to regularly travel and to exercise a few hours a day when at home. All was going according to plan until the COVID-19 pandemic hit. Now, we have provincial quarantine restrictions. Couple these restrictions with less than pleasant weather conditions and [...]

By |April 23rd, 2021|General Investing|Comments Off on Charlie Munger’s 13 Personal Attributes To Improve Investment Success

Hope Is Not An Investment Strategy

In several recent articles I have indicated that when it comes to investing, as with many other aspects of life, it is important to set objectives and a goal and to have a strategy by which to achieve them. Hope is not an investment strategy I have ever recommended. The subject matter for this post [...]

By |April 20th, 2021|General Investing|Comments Off on Hope Is Not An Investment Strategy

Avoid These 25 Investing Mistakes

There is a host of possible investing mistakes. Avoid these 25 investing mistakes to improve your investment returns and enhance your investing experience. Investing In Stocks Is Like Gambling This is a common myth among people who know little about stocks. Because they know so little about equity investing they choose to believe it is [...]

By |April 17th, 2021|General Investing|Comments Off on Avoid These 25 Investing Mistakes

Applying The Patience Wealth-Building Habit of Self-Made Millionaires

In my recent Wealth-Building Habits of Self-Made Millionaires post, I list the findings by Thomas J Stanley, Ph.D., Sarah Stanley Fallaw, Ph.D., and Thomas C. Corley after several years of research. The post also includes the US and Canadian wealth distribution statistics. These statistics strongly support the findings that most people struggle in applying these [...]

By |April 15th, 2021|General Investing|Comments Off on Applying The Patience Wealth-Building Habit of Self-Made Millionaires

Employing Debt to Buy Equities

In my Margin is a Double-Edged Sword and Investing Using Margin Debt Leaves You Vulnerable articles, I touched upon the risks of employing the use of margin debt for investment purposes. Margin investing is the practice of borrowing money from a brokerage firm to make investments. Traders tap this to increase buying power and then [...]

By |March 29th, 2021|General Investing|Comments Off on Employing Debt to Buy Equities

Buying Stocks When Valuations Are High

Several existing holdings, or companies on my watch-list, are trading at forward-adjusted diluted PE levels above the upper-20s. These companies with lofty valuations, however, have hundreds of thousands and millions of shares trading hands daily. This has me wondering what type of investors are buying stocks when valuations are high. Before I delve into this, [...]

By |March 24th, 2021|Equity Investing, General Investing|Comments Off on Buying Stocks When Valuations Are High

Two Questions I Ask Before Investing Money

In my recent The Secret to Making Money – Positive Cash Flow article I indicated the simple secret to making money is positive cash flow. In this article, I lay out the two questions I ask before investing money. These questions are: Will this investment generate a level of return commensurate with its level of [...]

By |March 24th, 2021|Equity Investing, General Investing|Comments Off on Two Questions I Ask Before Investing Money

Hype Versus Reality

The degree of irrational exuberance we are witnessing suggests many investors are focusing on the 'hype' and are paying little heed to reality. The 'fear of missing out' is what is likely driving many investors to 'invest' in companies or instruments which they do not fully understand. The valuation of many companies with no proven [...]

By |January 26th, 2021|Equity Investing, General Investing|Comments Off on Hype Versus Reality

Just Looking At The Price Is Not Investing

There is a big difference between investing and gambling. Do not merely look at the fluctuation in a company's stock price. Look at the underlying fundamentals of a business.   The current volatile market conditions make it doubly important to adhere to the teachings of Warren Buffett. Here is a brief interview conducted in February [...]

By |December 22nd, 2018|General Investing|Comments Off on Just Looking At The Price Is Not Investing
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