You’re probably overwhelmed with the number of investment choices you have available. Having options is good, but the paradox of choice is a real problem. This problem can be addressed, at least in part, by realizing that most of those options will be poor ones. Remember the Pareto principle – …
You know that tech stocks have the potential to earn you a lot of money. Tech stocks have created vast amounts of wealth over the past 30+ years and you’re scared of missing out on your share. I can’t tell you, specifically, what tech companies to invest in. Though, you …
Risk tolerance, in investing, is a measurement of an investor’s resilience in the face of adverse events. Over a long enough timeline, an investor will be tested at least once. The riskier the investment, the more often, and more severe, they may be tested. Planning for and understanding how you …
Stock picking involves actively choosing stocks to invest in with the goal of earning greater returns than would be earned with a passive strategy (e.g. index funds). Many investors open brokerage accounts for stock picking, but very few live up to their own expectations. Over the course of decades, index …
Skeptical about what information to include in your stock portfolio spreadsheet? Portfolio headers – video transcript So, what information do you want to capture when you’re creating a stock portfolio spreadsheet in Excel or Sheets? I like to capture the name and symbol, of course, to identify the investment. The …
Investors make money in stocks through capital gains (change in share price) or dividends. Money can be made quickly or slowly. It can also be lost. Most stocks are purchased through a brokerage (e.g. Charles Schwab, Fidelity Investments, TD Ameritrade). The simplicity of buying/selling and the potential for big returns …
Can you get rich from the stock market? Video summary Not only can you get rich by buying stocks, you don’t even need to make a bunch of great stock picks in order to do so. In fact, one exceptional stock pick can make up for a lot of poor …
“Do stocks go down when dividends are paid?” Yes. After a stock goes ex-dividend, the price of the stock usually falls by the amount of the dividend. That’s typically an inconsequential dip, though. Stock prices can fall much further, due to a number of other factors. Most dividends aren’t high …
“Should I keep my money in the bank or at home?” Keeping your money “under your mattress,” as the cliché goes, means that you’ll lose purchasing power due to the eroding effects of inflation. While it doesn’t hurt to have easy access to cash, there are better options than hiding …
“What are the benefits of a long-term strategy?” All things being equal, buying and holding is easier than frequent trading. If you decide to buy and hold for the long-term, then you want to invest in a company with a long-term outlook. This will ensure that they are operating on …