Rational investing for financial independence
“Compound interest is the eight wonder of the world. He who understands it, earns it….he who doesn’t, pays it” -Albert Einstein Presumably Albert Einstein said the words above, and likewise Benjamin Franklin said that time is money. Unfortunately, we seem to forget these very simple principles when it comes to most decision making – be it learning, investing or in
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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 most likely confirms why it makes sense to make investing as simple as possible. Charlie Munger once said the best thing to do is to “sit on your ass” and let your capital compound without
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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 justifies high valuations. Indexers might suffer more from high valuations than active investors. How important are growth and valuations? I look at theoretical returns under different valuations and growth. It turns out Warren Buffett is right: It’s
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I believe Investor AB is well know by most investors, even non-Swedish investors. It has an outstanding track-record of growing net asset value (NAV) for over a century. In this analysis I bring forward some arguments for why I’m long the stock, and why I believe it will continue to outperform. I believe the simplest investment ideas are the best,
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