Can Foreigners Open A US Investment Account?
The US stock market is about 50% of the world’s stock market capitalization. If you want a diversified stock portfolio it’s pretty natural to include
Continue readingCategory: Investing
Why Stock Picking Is So Difficult
Stock picking is difficult because only a small minority of the stocks contribute to the majority of the gains. It’s skewed to only a few
Continue readingWhy It Is Important To Avoid Investment Mistakes (Remove Unforced Errors)
The good is mostly in the absence of the bad. – Old proverb, mentioned in Nassim Nicholas Taleb’s Antifragile. Why is it important to avoid
Continue readingThe Best Seasonal Period In The Stock Market
Some weeks ago I published an article looking at the worst month in the stock market: September. Today, 29th of September, as September is coming
Continue readingAre Interactive Brokers and Degiro Safe?
In Street Name Your capital is at risk when you are investing in equity markets, but I assume very few consider the broker as a
Continue readingSome Thoughts On Estateguru (review)
Introduction and summary: I have invested in Estateguru since 2016 and this review shares my thoughts and experiences as a lender and investor on their
Continue readingSeptember Is The Worst Month For Stocks
Yesterday, the 3rd of September 2020, witnessed a pretty big drop in the stock market with Nasdaq leading the decline with a drop of 5.07%.
Continue readingWhisky Investment – Cask Is King
Introduction and summary Alcohol has for thousands of years been a vital part of human culture (whether you like it or not). Whisky though, a
Continue readingHow To Hedge Against Tail-Risk
Tail risk is a form of portfolio risk that arises when the possibility that an investment will move more than three standard deviations from the
Continue readingHow Did The All Weather Portfolio Perform During Covid-19?
This week I came across this blogpost by Nick Maggiulli about The All Weather Portfolio. What is The All Weather Portfolio? Maggiuli’s blog post is
Continue readingWhy Tobacco Stocks Outperform
Some months ago I wrote an article about the historical performance of so-called “sin stocks”. Tobacco companies have performed the best in the US, and
Continue readingWhy We Can Expect Lower Returns Over The Next Decade
2010-2020 produced better returns than the historical averages: From the start of 2010 until today, 27th of July 2020, S&P 500 returned 250% (dividends reinvested),
Continue readingFuture Expected Returns In A Zero Interest Rate Policy (ZIRP) Environment
The last decade has produced fantastic returns in most global asset classes (commodities excluded), helped by enormous interventions by central banks. Can we expect similar
Continue readingShould You Invest In Stocks Or Real Estate (Or Both)?
Most people invest in real estate, perhaps quite logically since this is a very easy business model to understand. Equity (stocks) is perceived as riskier
Continue readingThe Importance Of Diversification
Harry Markowitz won the Nobel Prize in 1990 for his work in showing mathematically how you can both reduce risk and create better returns by
Continue readingWhy The Mental And Behavioral Aspects Are Equally Important As The Strategy
No matter how good strategies you have, they are most likely worthless if you can’t execute them properly. What looks like a piece of cake
Continue readingDollar-Cost Averaging: A Simple And Easy Way To Beat The “Experts” And Build Wealth Over Time
Summary and introduction: Research shows that the majority of investors underperform the broad market indices. The most likely reason is due to frequent buying/selling and
Continue readingWhy Women Are Better Investors Than Men
Numerous studies suggest women are better investors than men, which of course might hurt the egos of many men. I find this fascinating, and it
Continue readingDoes Valuation Matter? Less Than You Think If You Buy Quality Stocks
Summary: S&P has an estimated P/E of 23 for 2020. Rich valuations sometimes make the best companies’ share price languish. Low interest rates justify high
Continue readingInterview: Short-Term Trading Is A Zero-Sum Game, Investing Is Not
This week I was interviewed about my trading philosophy. In the interview, I mentioned how difficult it is to make money daytrading or swingtrading for
Continue readingSell In May And Go Away – S&P 500
Most traders and investors have heard that you need to sell in May and go away. Is this just a myth or is it correct?
Continue readingThe Best (Little Known) Investment Advice From Warren Buffett
Warren Buffett, the Oracle of Omaha, has been a strong advocate of buying only what you truly understand and only companies where you can estimate
Continue readingSin Stocks And Performance
A certain group of stocks has outperformed the rest of the stock market by a wide margin: Sin stocks. Tobacco, alcohol, arms producers, the gambling
Continue readingA Long-Term Investor Wants The Share Price To Trade Around Intrinsic Value
Let’s assume you buy Disney at 100 and one year later it trades at 130. A 30% return in one year, isn’t that great! Some
Continue readingWhat I Have Learnt During The Covid-19 Crisis
Now is a good time to start a diary Now is a good time to start a diary. It doesn’t have to be long. But
Continue reading