Investing Strategy

  • 21 Feb
    You Can Become A Millionaire With Just $5 A Day – Here’s How

    You Can Become A Millionaire With Just $5 A Day – Here’s How

    • Investing is first about allocating capital, then about where to invest.
    • We’ll discuss how much you should allocate to savings for your age and expected market returns.
    • This is the most important thing you should focus on when investing and thinking about your financial future.



    Start With The Goal 

    We should start our investing adventure with the goal in mind. By having clear goals, it will be much easier to find ways to reach those goals.

    The two most powerful factors related to investing are compounded interest and time, which allows for that interest to compound. More →

  • 19 Feb
    Seth Klarman & Monish Pabrai’s Portfolio Rebalancing Master Class

    Seth Klarman & Monish Pabrai’s Portfolio Rebalancing Master Class

    • Both Pabrai and Klarman have huge cash positions, but what’s interesting is that they both rebalance their positions in relation to the risk.



    Introduction

    Monish Pabrai and Seth Klarman are among the top value investors managing significant sums of money.

    Pabrai is a Buffett devotee. You can read more about him in our article here, or read his book The Dhando Investor: The Low Risk Method to High Returns.

    Klarman is the manager of the Baupost Group, a $30+ billion hedge fund. He’s also famous for his book The Margin of Safety. The book is a bit pricey, but you can read my series of articles about the book here. More →

  • 15 Feb
    The Stock Market Crash Hedge You Need Now

    The Stock Market Crash Hedge You Need Now

    • I’ll explain how the key hedge for the retail investor is the cash component.
    • Further, we’ll discuss how much cash one should have now, and there is a method. In the end, it depends on one’s age.
    • Forget about options and derivatives as they are extremely sophisticated strategies for retail investors.



    Introduction

    Volatility has really spiked in the last few weeks and the stock market is in correction territory. The main question everybody would like to know the answer to is whether this slump will continue.

    Of course, even if fundamental indicators have been showing the market is overvalued for quite a while now, you can’t precisely know what will happen.  However, the market isn’t risky because of volatility, it’s risky due to extremely high valuations and rising interest rates. More →

  • 09 Feb
    Just Starting Out? Here’s 15 Things You Should Do As An Investing Beginner

    Just Starting Out? Here’s 15 Things You Should Do As An Investing Beginner

    At first, investing can be really overwhelming. But trust me on this one, it is worth it.

    In today’s article, I’ll try to go beyond what most “stock market for beginners” articles say by discussing actual things to do and not to do. This should help you to get the best out of investing as quickly as possible and to really give you a boost in your path to whatever your financial goal is.



    Open A Few Brokerage Accounts

    One of the first struggles for new investors is the process of picking a broker.

    The easiest thing to do is to search for the lowest transaction cost broker in the beginning. However, nobody forbids you from opening more accounts if they are at no cost and then seeing which broker best fits your needs. You‘ll also learn a lot in the process. More →

  • 08 Feb
    It May Hurt To See Stocks Decline, But Here’s Why It’s Good For You

    It May Hurt To See Stocks Decline, But Here’s Why It’s Good For You

    • The lower stocks go, the richer you will be. Sound crazy? I’ll show you how it works.
    • There is no trick, you just do what you would do anyway and end up richer even if you have $500k in stocks now.
    • I’ll end on a personal note about how I’ve made most of my investment returns after terrible market crashes.



    Introduction

    A real investor is one who is happy when stock prices fall. Let me ask you a few questions borrowed from Buffett: More →

  • 07 Feb
    Thinking About Investing In GE? Read This First

    Thinking About Investing In GE? Read This First

    • I’ll give a simple overview of what investing in GE means now, what the risks and rewards are.
    • Depending on what your required returns are, GE might be an attractive investment.
    • However, a lot of bad things can still happen.



    Introduction

    General Electric (NYSE: GE) was one of the worst performing stocks in 2017 and the situation hasn’t changed in 2018. More →

  • 06 Feb
    This Is What Could Keep The Stock Market From Crashing

    This Is What Could Keep The Stock Market From Crashing

    • There are scenarios that could see stocks double from current levels, no matter how crazy those scenarios might look now.
    • I’ll explain what’s going on, why, and what can you do about it.
    • No one can know exactly what will happen, so the key is to be prepared for anything.



    Introduction

    After yesterday, many are expecting a stock market crash. And by looking at what happened in 2000 and 2009, it seems pretty logical that the market will crash as things are looking ridiculous. More →

  • 30 Jan
    The Black Swan Investing Strategy You Need To Know

    The Black Swan Investing Strategy You Need To Know

    One of my favorite authors is Nassim Taleb. I find his books The Black Swan and Antifragile mind blowing.

    There is a lot of entertaining philosophy in his text and one must really dig deep to extract practical tools to use in this environment full of black swans, randomness, and fragility. Here are a few of his ideas that you can apply if a black swan investing strategy fits your personality.



    What Is A Black Swan?

    A black swan is a metaphor for an event that comes as a surprise but has a huge impact on the market and is later rationalized. For example, the 2008 housing crisis was such an event. Now it’s clear why and how it happened, but only a few saw it coming in 2007. A positive black swan would be an even that is a surprise but has a huge positive impact. More →

  • 26 Jan
    Are Emerging Markets Still Attractive?

    Are Emerging Markets Still Attractive?

    • The MSCI emerging market index is up 53% in the last 12 months.
    • However, nothing has actually changed in the long term fundamentals which makes things much riskier.



    Introduction

    If you have been following Investiv Daily for the past year and a half, you know that I have been extremely bullish on emerging markets because of their relative cheapness when compared to developed markets, positive demographics, and positive economic growth. More →

  • 24 Jan
    What Is Buffett Buying & Selling?

    What Is Buffett Buying & Selling?

    • A look at what Buffet has been buying and selling lately gives us a few clues about how to spot good investments.
    • What we can also see is his investment psychology, which has been the key to his success.
    • With $106 billion in cash and new dividends coming in constantly, you have to be a net buyer.



    Introduction

    Buffett recently said that he’s a net buyer of stocks. Many took that as another bullish signal for the whole stock market, but you should be aware that Buffett doesn’t usually buy what others are buying.

    A year ago, we analyzed how Buffett was buying stocks but not the market. He was buying Apple (NASDAQ: AAPL) and airlines which all had PE ratios way below the market’s and in the single digits. More →

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