Reason – The Power of investing sensibly

Investing sensible or as Benjamin Graham says, investing intelligently is a central aspect for value investors. The power of reason is huge and using it well, can increase your success tremendously. Many people believe, investing successfully has a lot to do with luck. Especially many average private investors are convinced about the great influence of luck when investing. That’s why they …

Average Investors – Why they don’t get great returns and how you can do it better!

The investment market is a place of hopes and fears. Many average investors hope to make a lot of money, sometimes to make it very quick. But they also fear to lose their hard earned money and some really do very quick. The most, I think, don’t get great returns, in the best case, mediocre returns. The question is, why and …

Risk – How to deal with it?

When you invest money, risk is always inherent. For many small investors, the question of risk, i.e the risk of losing money, is of great importance. Especially, because they invest their hard earned money. So today, we want to look a bit closer to risk. (Watch the risk post as video!) For many people, investments are a very sensitive issue. It’s …

Valuing Companies – Three ways

Valuing a company is one of the most important tasks an investor has to solve. Buying an overpriced business all too often leads to massive losses. But how to value a company? (Watch the VLOG) Valuing a company is difficult and associated with a lot of work. When I’m sneaking around social media and read about investments young investors make, …

Benchmark – Forget it!

It’s like a disease. To get a notion about ones investment success, many want to know if he was better than his benchmark. But I tell you what. Forget the benchmark! The benchmark doesn’t decide on your investment success. I’ve never understood why so many people equals investment success with beating a benchmark. I’m not investing on the stock market to …

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, …

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 …