Compounding investing wisdom...
Every decision you make comes with the chance of being wrong. Being wrong isn’t something we like to think about, but it matters.
Limiting your decisions, those potential points of failure, can improve your portfolio returns. It definitely impacts your costs, your free time, and your sanity.
So a good goal would be to streamline your investment process to the fewest possible (bad) decisions. Continue Reading…
Peter Lynch is one of the greatest fund managers ever. Though, it’s been over two decades since he managed money, the lessons he learned are timeless.
Lynch ran the Fidelity Magellan Fund from 1977 to 1990. During that time, he beat the pants off the market. He outpaced the S&P 500 11 out of 13 years, averaging a 29% annual return. From start to finish, that’s a 2700% return!
Lynch documented his experience in two books: One Up on Wall Street and Beating the Street. The lessons you’ll take away from both books far exceeds the ten below.
Every day brings something different to worry about – inflation, recession, depression, natural disaster, war, market crash, and that bus when you cross the street. In the last 100 years, the market has seen it all and recovered. You can wait for the sky to fall or you can invest knowing it will happen, you’ll get through it, and the market will too. Continue Reading…
Three choices exist for every investment decision – buy, sell, and do nothing. Probably the most overlooked part of each choice is taxes.
Taxes are decided by what you buy, what you paid for it, what you’re paid while you own it, when you sell it, and what you sell it for. Simply, income and realized gains get taxed. Gains are a direct result of buying and selling. Notice, there is no capital gains tax for doing nothing. Continue Reading…
You don’t have to look far to find someone proclaiming what will happen next. You see it in sports, politics, and especially the markets.
Someone always knows the outcome before it happens. If the person sounds smart and confident enough, some people listen. And some spend good money for the information, so they can risk even more money for the hope of great results. Continue Reading…
Most people only want to look at the upside. How much money can I make? How big of a return can I get? Big wins are important.
Few people ask, “How much can I lose?”
You should always play offense and defense with your portfolio. Continue Reading…
For some reason, the idea of contrarianism has popped in my head these past few days (probably from something I read but can’t remember what). The idea of a contrarian view gets tossed around a lot in investing.
Understandably, if you want to outperform most investors you need to invest differently, independent from most investors. You’re betting against the crowd, which is not an easy thing to do. It can feel like you’re trying to walk into a stadium just as the game is letting out. Most people understand this concept, but few actually follow through with it successfully because they give up before they get to their seat. Continue Reading…