Why Does Everybody Love a Sale Except When it’s the Stock Market?

The peculiarity of most people is perhaps no more apparent than how they deal with money.  I find that one of the funniest phenomenons is that of the idea that you’re “saving money” by buying something on sale.  A person might drop $1,000 on a new T.V. that’s on sale, for example, but be more excited by the fact that the regular price was $1,300 and therefore claim that they “saved” $300.  No, they actually didn’t save a single dollar – they just spent one thousand of them!  However, so few people seem to see things this way when it comes to retail spending.

Retailers have most people brain-washed into thinking that Continue reading “Why Does Everybody Love a Sale Except When it’s the Stock Market?”

Advertisements

Is Diversification Good or Bad?

A popular mantra in the world of investment advising is the idea of diversification, of dividing your money into several different types of investments instead of just one or a few and, in the case of stocks, into several different companies.

This is in stark contrast with Warren Buffett, considered one of the most successful investors of all time and arguably the most famous, who once said: Continue reading “Is Diversification Good or Bad?”

Should You Hitch Your Wagon to a Racehorse?

Whether you’re a seasoned stock investor or a newbie, chances are that you’ve come across that one stock that seems to be on fire.  It will surge a percent or more for a few or even several days, cool off for one or two, then continue its strong trajectory for weeks and even months.

The question arises:  should you jump into owning a stock that’s growing fast?

Continue reading “Should You Hitch Your Wagon to a Racehorse?”

Building An Investing Cushion

People who are invested in the stock market are enjoying one of the longest periods of sustained growth in its history.  Following the recession of the late 2008-09, the U.S. markets in particular have moved steadily upward, having only short periods of minor setback and few at that.  It’s really quite an amazing run when compared to the overall history of the market.

Even if an investor has started buying stocks of quality companies only within the last five years and held onto them, they will typically have already experienced Continue reading “Building An Investing Cushion”

The Poor Won’t Get Richer Until They Get Smarter

Although I don’t always trust the credibility of facts and statistics that I see on social media, I saw a recent Facebook post that had a lot of truth to it.  In a nutshell, it illustrated how big-ticket items like a car and home were a few times less expensive a few decades ago when compared to an average person’s annual wage than they are now.  The point:  the spread between what the average person makes and the things that he/she needs or wants to buy is growing larger.  This made me think about Continue reading “The Poor Won’t Get Richer Until They Get Smarter”

Death By Subscription

The great financial plague that is wiping out households across North America in particular is none other than personal or “consumer” debt.  I’m describing it like it’s something to be feared because there’s still enough old-school financial thinking left in me to realize just how nefarious it is.  Once out of hand, it not only destroys one’s financial situation, but it has also Continue reading “Death By Subscription”

Through the Lens of an Investor

Sometimes life is funny, like when you give a blog post a title without realizing until after that it was subconsciously inspired by what got you to write the post.  This post, for example, was inspired by some of the lively discussion that happens on Digital Photography Review, better known by its web address dpreview, and of course a lens is an integral part of photography.  Title explanation aside, dpreview.com started in 1999 as one of the first sites Continue reading “Through the Lens of an Investor”

The Most Stressful Thing About Buying a Stock

I hope that what I’m about to share will help you recognize possibly the greatest reason why people lose money in the stock market.  If you can overcome this hurdle, I’m confident that you can experience long-term success as a stock investor.  Why I’m so confident is because I’ve had to overcome this same hurdle myself not just once, but every time I buy new shares in a stock and often with very good long-term results.  One of those times occurred recently  Continue reading “The Most Stressful Thing About Buying a Stock”

How One Stock Will Produce Winners and Losers

Let me reveal right up front what most inexperienced stock investors fall for:  the buy recommendation.  Whether it’s from a time-tested, reputable service like The Motley Fool, a financial advisor, or from a friend – or a friend of a friend – people who know little to nothing about stocks and the market and investing can get Continue reading “How One Stock Will Produce Winners and Losers”

So You’re Following this Blog, Eh?

A few months ago, a very curious thing started happening with this blog.  I started getting regular and numerous e-mail notifications about new followers, all with an @outlook.com e-mail address and mostly non-sensical user names.  However, none of them show up in my list of followers and so I’ll call them “mystery followers.”  This is a bug of sorts that other WordPress bloggers have noted in forums, but which nobody seems to have an answer for.  Allow me to entertain some thoughts. Continue reading “So You’re Following this Blog, Eh?”