My investment philosophy is quite simple.
Most investors should utilize a passive investment strategy, with an emphasis on cost minimization and optimal portfolio diversification.
We have covered my reasoning for this in many posts leading up to today.
In short: (more…)
I saw a (now) humorous video from The Today Show dated January 1994.
Quite funny now, but back then a serious topic.
It is a great lesson on how the investment world is constantly changing.
What was a relatively unknown concept 17 years ago is now commonplace.
First the video, then a few examples: (more…)
Like the old E.F. Hutton advertisements, when Warren Buffet speaks, people listen.
And listen closely. (more…)
Occasionally I watch the financial channels and listen to advice from the various talking heads.
I do not believe their advice is usually worthwhile. Many throw out wild predictions (e.g. the Dow going to 36,000) in the hope that if they are correct, they can live off the glory for a long time. You always hear about the ones they called correctly, never the ones they got wrong. (more…)
In Compound Return Investment Lessons, we saw the significant impact taxes and transaction costs have on wealth accumulation.
The more you pay others, the less remains to compound. To maximize returns, you need to minimize expenditures.
In Minimizing Investment Costs – Taxes, we explored ways to reduce the impact of taxes. Today, let us consider how to reduce transaction costs. (more…)
Investment strategies can be used to reduce the risk of getting caught in a bursting investment bubble. Here are a few practical strategies for consideration.
1. Diversify Your Investment Portfolio (more…)
In my post, Compound Return Investment Lessons, we explored how the principle of compounding can impact portfolio returns.
One lesson; by minimizing money spent on taxes and transaction costs, the amount available for reinvestment increases. And it is the reinvested money that is critical to successful compounding.
So what can you do to try and maximize your cash return? Let’s look at reducing taxes first. (more…)
Many people think that investing is all about calculations and analysis. Poring through financial statements, expert analysis, and news releases to determine the best investments.
While true to a certain degree, investor behaviour also has a tremendous impact on portfolio returns. At times I think behaviour has more clout than either technical or fundamental analysis. (more…)
Recently we have explored developing investment and business ideas from unusual sources.
Jay Walker uses his library to help stimulate his business creativity. (more…)
In a prior post, “Investment Ideas Come From Everywhere”, we looked at how potential investments can be found pretty much anywhere.
But at the U-haul shop? (more…)
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