diversification risk

Is Diversification the Opposite of Risk Reduction?

“Diversification is one of the most important component regarding risk reduction.” Most investment professionals would agree to this statement and private investors believe it. But is this statement true? (also published on GuruFocus.com) One of the first things you hear when starting your investment career is that you have to diversify your investments. Your bank manager is saying it. Your …

investing

Value Investing – higher return with lower risk!

IN THE INVESTING WORLD, MOST PEOPLE ASSUME THAT HIGHER RETURNS CAN ONLY BE ACHIEVED WITH HIGHER RISKS – BUT THAT’S NOT ALWAYS TRUE! “When you’re investing and you want higher returns, you also have to take a higher risks!“ One can hear something like that all too often. Not only by private investors with little experience in the investment market, …

bitcoin

Bitcoin – avoid this pain!

„Bitcoin reaches new all-time high!“ (FAZ 12.12.2017) „Bitcoin unstoppable“ (Handelsblatt 07.12.2017) „Bitcoin starts with a boom and a crash“ (N24/Welt 11.12.2017) „Bitcoin starts miserably into the new financial age“ (N24/Welt 12.12.2017) „Bitcoin crashes by 18 percent“ (Handelsblatt 29.11.2017) „More than $60 million worth of bitcoin potentially stolen after hack on cryptocurrency site“ (CNBC 08.12.2017) Huge success and failure are close …

loses money

Who doesn’t invest – LOSES MONEY!

For several years now, we have been living in a low-interest trap. Although you can lend money on favorable terms, you can hardly get interest on overnight money and treasury bonds. This is really hard for the German savers, because they are highly risk averse and most of their savings are put into such investments and thus loses money. The …

Wallstreet investors

Investors mistakes – Why investment mistakes are no mistakes at all?

Private investors are lagging far behind the return of the overall market. The reasons are worth discussing. According to a recent study, private investors are lagging far behind the return of the overall market. While the market achieved an annual return of 8.7%, the return on the portfolio of private investors was only 3.1%. This I have recently read in …

gold

Why gold is not a safe haven?

Gold – what a facility! A safe haven for our hard earned money. The only viable currency in times of crisis. And crisis is always somehow. And it also looks beautiful when it shines so brightly in the sun. This beloved metal does not look any better than that. Because “gold is only once meaningless” as Andreas Beck, founder of the …

Efficient Markets

Efficient Markets – Why they’re a Fairy Tale!

“Financial markets are efficient. All available information has already been entered. For this reason, no market participant is able to achieve permanently above-average profits.” If the tale of efficient markets is true, why are some of the greatest investors making so much money with their investments in the stock market and have such an incredibly high a fortune, like Warren …