Not everybody is convinced that investing on your own by choosing individual stocks could be successful for ordinary people. I’m of a different opinion. Today, I tell you why! When you’re young and at the beginning of your investment career, you’re enthusiastic and maybe driven by the wish to become rich for whatever reason. You start to read and learn …
Why do most fund managers underperform?
Most fund managers don’t beat the market. Are they lousy investors? Or do you have to be extraordinary to beat the market? I don’t believe it. And you shouldn’t believe it either. Because you want to beat the market. I’m a stock picker, you know that already. And I’m a kind of value investor, too. Nothing new for you, I …
Value and Price – Are they both the same?
People tend to express value by a price that we’re willing to pay. Therefore many, if not the most, people equate price and value. But are both really the same? Recently I had a really nice conversation about investing. During our little chat we came to Bitcoin mining and crypto trading and to the question, why investors aren’t very interested in …
Selling Stocks – When is the right Time?
Selling stocks is at least as hard as buying them. For me, it’s like giving up a good friend. But that’s emotional. What about rational reasons? Although not as difficult as constructing a rocket, buying stocks reasonably needs some work to be done. I talk about this in my post “How do I find a stock to invest in?”. When you …
The Advantage of small Investors
Many professional advisors as well as many private investors are of the opinion that an average investor has no chance to beat the market. Rather, he will perform worse than the market just because of his background. But is this really true? Or do they have an advantage? People who read my latest posts know that I love to invest in …
Should I invest in Stocks with little Money?
People who are young and at the beginning of their investment career often don’t know if they should invest in stocks with little money. Some market participants say, it’s not worth it. But is that true? If you want to build you a fortune, it’s a good idea to start as early as possible. The longer you’re investing the compound …
Why I prefer to invest in Stocks!
The possibilities to let your money work for you are endless. I myself prefer to invest in stocks for different reasons. One is, it’s great for professionals and quite easy for small investors. I prefer to invest in stocks. I do it for more than 25 years now. But being an investor could mean a lot more, i.e. investingin real estate, …
Don’t Panic! It’s just the Market that’s dropping!
Dow Jones Industrial Average down 4.60%. S&P 500 closed -4.10%. The Nasdaq Composite down 3.78%. Since is high Jan. 26, the Dow Jones industrial average has dropped 8.5%. But this is no reason for panicking! Since his high since Jan. 26 the Dow Jones lost more than 2000 points and the stock markets world wide also decreased. The DAX (the …
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 …
Money to invest – where do I get it from?
Investing your money will give you two great opportunities. First, the money provides you against future risks. Second, you can do many things with the money that you dream about. But often people don’t know, where to get the money from. When I’m talking to people about investing, I all to often can perceive two reactions, especially from young people. The first reaction is sincere …