3 Ways We Sabotage Our Wealth
We started saving as soon as we got our first jobs. My wife and I set aside 10% or more of our paycheck each month and have maintained this discipline through our 26 years together. In this context, we’ve been successful savers. In spite of this, we’ve certainly made our share of mistakes along the […]
Q&A – Starting Young
I’m in my 20’s. How do I invest? Answer By wanting to invest this early in your life, you’re already taking advantage of the most important asset you have as an investor (Time). You really only need 3 other things. An investment vehicle/fund (to invest in stocks); A discount brokerage account; Conviction – the most important […]
The Market “Melt-Up” – A Note to the Young Investor
Happy New Year! As I write this in the first few days of 2018, North American stock markets are going up and breaking new records on a daily basis. The economy looks good, data shows that main street investors are jumping into stocks and the 2008 economic crisis is a distant memory. Everyone is optimistic. […]
5 Basics of Personal Finance You Need to Know
Here are 5 basics of personal finance and investing every person should know. Spend less than you earn – The simplest way to do this is to practice Make, Save, Live (in that order). That is, Save before you Spend. No matter how much money you make, if you do not spend less than you earn, you will […]
Your Relationship with Money
Money is important. Money buys the freedom to pursue your dreams. Money empowers your ability to jump out of bed each morning to choose exactly how you’re going to add value to the world. Yet, in spite of its great importance, statistics show the majority of us have a poor or negative relationship with money. […]
Principle #9: Conviction is the #1 Trait of Successful Investors
Conviction in business is a rare trait. In order to hold firmly to a belief or opinion in spite of rapid changes in market forces requires study, expertise and introspection. The most successful businesses are run by managers with this rare commodity they leverage to make decisions to profitably allocate capital. It should not be […]
Principle #8: Investing is not a Zero-Sum Game
Many investors lose because they try to win. That is, they try to outsmart other investors by trading their investments based on short-term predictions of the future price of their holdings. A recent study, published by Forbes magazine shows the “average” investor had underperformed a wide range of asset classes by a very wide margin. […]
Principle #7: Understand the Difference between Value & Price
“Buy Low, Sell High” is likely the most common of all investing adages. The implication, of course, is to purchase an asset (e.g., shares of companies) and sell it to someone else for a higher price. This is difficult to achieve since lows and highs in price only become clear in retrospect. In the equity markets, […]
Principle #6: Time is Your Most Valuable Asset
Procrastination is a mysterious force that keeps many of us from completing the most important tasks in our lives. Often, we put off something we deem important simply because we believe it may not necessarily be urgent. We know it is important to save for our future, but we typically underestimate the damaging effect of […]
Principle #5: Abhor Risk, Embrace Volatility
Chances are, when you first met with your financial advisor, she asked you to fill out a questionnaire to assess your risk tolerance using a question similar to the following: “Given your financial goals, how much risk are you willing to assume to achieve your portfolio’s expected return?” At best, this type of question is […]