Rational investing for financial independence
To shelter your savings from taxation while building your nest egg is extremely important. I believe this is pretty obvious for most investors, but I suspect it’s still neglected because the headwind takes about ten years to really make a difference. Unless you have a tax-sheltered account you will take a beating whenever you receive a dividend or sell a
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The word scalable is in Merriam-Webster defined like this: 1 : capable of being scaled 2 : capable of being easily expanded or upgraded on demand // a scalable computer network The media loves a good story of someone who has disrupted an industry or made a fortune doing something unique. An article in the Boston Globe caught my
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I guess most readers of my website have read books by management gurus like Jim Collins and Tom Peters, and many more have probably studied Micheal Porter’s Competitive Strategy. But the “problem” with business theory is that it’s solely built on case studies and has not been tested scientifically. Matthew Stewart’s The Management Myth – Debunking Modern Business Philosophy “debunks”
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I believe Buffet’s annual letters are an invaluable source of investment knowledge. I recently reread all of them, in addition to rereading Lawrence Cunningham’s The Essays Of Warren Buffett – Lessons For Investors And Managers, a book containing excerpts from all the annual letters. I have read the annual letters a few times, but I keep rereading them at 2-3
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I like to take notes when I read (see my notes on the pic to the left, excuse my eight-year old handwriting). I believe notes are a wonderful resource to revert to later, an even better is having the quotes easy accessible online for later use. Thinking In Bets by Annie Duke is a fantastic book on how to make
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Charlie Munger likes to think inversely. Inverse thinking simply means focusing on the things you don’t want to happen. Munger didn’t invent this concept, but he has made it immensely popular. While Munger turns the question on its head, he touches upon a very important aspect: how to avoid mistakes. Why does inverse thinking help? Munger says inverse thinking avoids
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I sometimes receive e-mails from potential traders that want to get “rich” trading. I tell them to instead consider investing their capital for long-term appreciation, preferably via passive or active mutual funds. This is why: The chart shows 10 000 invested annually for 30 years with 9% return: after 30 years you have almost 1.4 million in assets. Not bad!
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Some weeks ago I published an article about what investors and traders can learn from Atul Gawande’s The Checklist Manifesto. I like to take notes when I read (see my notes on the pic to the left, excuse my eight-year old handwriting). I believe this is a fantastic resource to revert to later. Better, though, is reading a good book
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This weekend I reread The Checklist Manifesto, a book published in 2010, which argues the case for a systematic approach to our daily work as professionals. Below you find arguments for why I believe a checklist should be a part of the toolkit of any aspiring speculator or investor. Both Charlie Munger and Warren Buffett use checklists. Buffett has a
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I reread all of Nassim Nicholas Taleb’s books in October 2019 (except The Bed of Procrustes, which I have not ordered yet). I strongly recommend all his books, both for insights in your “everyday” life or “trading/investment” life. His books have made a huge impact on how I view the world and how I invest. While reading I wrote down
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Crowdfunding/p2p is a relatively new asset class and has increased in popularity over the last five years. To my knowledge the biggest market, UK, at one point had 12% (?) of the lending market served by crowdfunding. But before you dip your toe in the crowdfunding water you should carefully evaluate if this is for you. My advice: be very,
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About one year ago I moved from a house to an apartment. I try to keep physical possessions to a minimum and this philosophy made all my possessions fit into just one big van. My only problem was my huge bookshelf, in addition to books stored and placed at different locations, even different countries. When I put my books into
Continue readingNorway is an expensive country, I guess most tourists can agree on that. But why? One of the main reasons is the financing of the welfare state. Let me give you an example on how taxes make prices go up: Let’s assume I make 100 EUR per day in my job as an accountant. I need to paint my house
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Mainstream media and politicians always call for limitation of firearms to avoid murders and violence. Because of this, I wanted to look at some numbers by myself. This article is superficial and does not in any way explain any cause and effect, which I believe are more complex than we imagine. First up is simply a correlation of all countries:
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I have now lived as an expat close to two years in Latvia. Coming from a different country I see things in a different light than the average Latvian. Norway and Latvia might not be that far apart in distance, but in terms of mentality we’re sometimes on different planets. Both countries have a history of being “occupied”. Norway with
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More or less all countries have established minimum wage by law. It serves as a floor for the price of labor. Put simply, minimum wage is the lowest hourly, daily or monthly payments that employers can legally pay to its workers. Even a worker cannot sell his labor at a lower price if he wants to! In this article I
Continue readingMy name is Oddmund Groette (1971) and I reside in the former USSR (but I’m a citizen of Norway). This website contains my thinking, thoughts and opinions on the subjects that interest me the most: investing, stock analysis, business and philosophy in everyday life. I have been an investor for almost 20 years (investing my own money), and I spend
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