There were a couple of really good articles last week about the quick collapse of wealth. The first one in the Financial Times was about the final hours of FTX. It was a fascinating insight into the collapse of a company once worth $40 billion. Its founder Sam Bankman-Fried had a personal wealth of $20 […]
For years, tech stocks were all the rage. The Nasdaq 100 post double digit returns for eight of the ten years up to the end of 2021. The other two years posted returns of 4.58% and 9.91% (you could round this up to double digits!). With returns over 30% for last three of those years, […]
There was a time when if you wanted to invest, you had to go to a stockbroker and they would place the trades for you. They earned a commission on placing the trades, so it was only worth their while making sizable investing. In other words, you had to be rich to invest. Current Day […]
2022 has been a horrible year for investors. Inflation continues to be high, interest rates have been increased agressively, Russia invaded Ukraine and energy costs have skyrocketed. All of these factors point towards a recession in the next few months/ next year. Year to date, the market is down -9.70%. It is understandably a hard […]
We frequently hear people comparing investing to gambling. When in fact, they are the opposite. When you gamble, your greatest chances of coming out on top is in the near term. The longer you gamble, your chances of beating the house decrease further and further. With investing, the chances of losing money in the short […]
Ask any financial advisor if you should borrow to invest in a basket of equities and 99.9% (0.1% margin of error) of them would tell you no. There are loads of reasons why you shouldn’t. The cost of entry for investing in equities is very low. You can just save up a small amount and […]
When I do a risk profiling questionnaire with clients with DataPoints, the first topic in the results that we talk about is Investing Confidence. Making decisions about investing requires you to have confidence in the decisions you make. You need to be confident that you invested in the correct assets and it will come good […]
In the book, How much is enough? by Arun Abey & Andrew Ford, they lay out the four golden principles of investing. They are quite simple and easy to follow. They are not new either but sometimes we lose sight of them, especially when FOMO takes over and we want large returns instantly. Principle 1 […]
In 1992, the top 10 holdings in the S&P 500 were: General Electric Exxon AT&T Wal-Mart Coca-Cola Philip Morris Shell Merck Proctor & Gamble General Motors 10 years later the top 10 holdings were: Microsoft General Electric Exxon Pfizer Wal-Mart Citigroup IBM Intel Cisco System In 2012, the top 10 holdings were: Apple Exxon Google […]
I had a financial planning meeting with Bob last week. Going through his investments, he noticed they were up 7%. He was both delighted and surprised. How could this be with everything that is going on in the markets? Bob looks at his portfolio once a year when we update his plan. For the other […]