Browsed by
Author: Money Is Boring

Peter Lynch: Why It’s Important To Do Your Own Research

Peter Lynch: Why It’s Important To Do Your Own Research

Comments 0 Comment

Here’s an excerpt from an article I recently stumbled across written by Peter Lynch in 1993. In it, he talks about the importance of doing your own research and not relying on the opinions of others to make your investment decisions. I’ve edited the text below for clarity and conciseness: “The fact that the professionals now dominate the markets, which so often leads people to conclude that the amateur has no chance, has actually improved the amateur’s chance…What holds them…

Read More Read More

Why Warren Buffett Reads Annual Reports

Why Warren Buffett Reads Annual Reports

Comments 0 Comment

Most investors never review company annual reports. It’s easy to understand why. Full of facts, figures and detailed accounting notes, these reports are hard going. They’re not exactly bedtime reading. However, annual reports often contain valuable information for investors. As such, they shouldn’t be overlooked, no matter how dry the material is. So, what’s the best way to read these reports? Is there anything we should be on the lookout for that might provide insight into a company’s financial position…

Read More Read More

Warren Buffett: How Phil Fisher’s Scuttlebutt Method Should Be Used

Warren Buffett: How Phil Fisher’s Scuttlebutt Method Should Be Used

Comments 0 Comment

In 1960, Warren Buffett read a book that changed his investment mentality forever. The book was called “Common Stocks and Uncommon Profits,” and it was written by Phil Fisher in 1958. In the book, Fisher described what he called the scuttlebutt method for finding investments. This method was the process of discovering as much about a company and its products as possible. To do this, Fisher recommended interviewing competitors as well as listening to rumours on the business “grapevine.” He…

Read More Read More

How To Start Investing: 5 Simple Steps

How To Start Investing: 5 Simple Steps

Comments 1 Comment

Over the past 10 years, I’ve learned a lot about the stock market and what it takes to start investing and successfully and build wealth. Most new investors trip up because they make some simple mistakes, which are quite easy to avoid if you know what to look for in the first place. However, if you don’t know what to look for, these mistakes could become costly learning experiences. With that in mind, here are my five simple steps to…

Read More Read More

The Best Method To Overcome Uncertainty It To Embrace It

The Best Method To Overcome Uncertainty It To Embrace It

Comments 0 Comment

Investors currently have to grapple with one of the most uncertain investing environments in recent history.  There are so many things going on right now it’s challenging to figure out which is the most pressing, especially from an investment perspective. The coronavirus is a global health emergency, and it has caused untold economic pain around the world.  Brexit is also on the agenda once again. It’s looking increasingly likely that the UK and EU will fail to reach an agreement…

Read More Read More

Lessons from Wall Street’s Four Great Bottoms

Lessons from Wall Street’s Four Great Bottoms

Comments 0 Comment

Professor Russell Napier spends most of his time studying financial markets. Author of The Solid Ground investment report for institutional investors and co-founder of the investment research portal ERIC, Russell has been writing global macro strategy for institutional investors since 1995. He’s also a student of financial mistakes. He set up the not-for-profit Library of Mistakes in 2014, a library dedicated to avoiding mistakes. The professor set the Libary up with the simple goal of educating the financial world about…

Read More Read More

How Phil Fisher’s “Common Stocks and Uncommon Profits” Changed Warren Buffett’s View Of Investing

How Phil Fisher’s “Common Stocks and Uncommon Profits” Changed Warren Buffett’s View Of Investing

Comments 2 Comments

Warren Buffett was taught how to invest by Benjamin Graham, who is considered to be the Godfather of value investing. In the early years of his career, Buffett followed Graham’s style of investing closely. He concentrated his efforts on finding so-called “cigar-butts,” stocks trading at bargain-basement valuations due to structural issues.  Here’s Buffett explaining the approach in his 1989 letter to Berkshire Hathaway shareholders:  “If you buy a stock at a sufficiently low price, there will usually be some hiccup…

Read More Read More

The Best Investors Only Act On Their Best Ideas

The Best Investors Only Act On Their Best Ideas

Comments 0 Comment

According to Investopedia, 630,000 companies are traded publically on stock exchanges around the world.  Of these, less than 5,000 trade on US exchanges and 2,080 are listed on the London Stock Exchange, which claims to be the world’s most international of global exchanges. With so many options out there, investors are spoilt for choice when it comes to choosing investments. But this level of choice is not necessarily a good thing.  Most companies underperform Of the thousands of public companies…

Read More Read More

Lessons From The Charlie Munger Partnership

Lessons From The Charlie Munger Partnership

Comments 0 Comment

Before he became Warren Buffett’s right-hand man at Berkshire Hathaway, Charlie Munger ran his own investment partnership where he established an impressive track record for himself. In fact, the Munger partnership performance earned him a place in Warren Buffett’s now-famous essay, The Superinvestors of Graham and Doddsville: “ … is the record of a friend of mine who is a Harvard Law graduate, who set up a major law firm. I ran into him in about 1960 and told him…

Read More Read More

Property Investing And The Advantages of an Illiquid Asset

Property Investing And The Advantages of an Illiquid Asset

Comments 0 Comment

Real estate is a great way to build wealth, and owning property has made a lot of people a lot of money over the years. However, equity investing has yielded similar, if not better results over the years (although this varies from market to market and depends on which benchmark you use.) The one primary difference between real estate investing and equity investing, however, is liquidity. The liquidity issue It is very well known that investors are their own worst…

Read More Read More