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Category: General Investing

How Carl Icahn, Ray Dalio and Seth Klarman Beat The Market

How Carl Icahn, Ray Dalio and Seth Klarman Beat The Market

One of the great things about investing is there is no right or wrong way to make money, just ask Ray Dalio, founder of the world’s largest hedge fund, Bridgewater. Just because one investor has made money using a particular strategy does not mean it will work for someone else. Simultaneously, just because an investor has lost money using a specific strategy does not mean every other investor will lose money following this path. The way to achieve a successful…

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5 Things I Learned As An Investor In 2020

5 Things I Learned As An Investor In 2020

Last year was a challenging one for investors all over the world. As the pandemic spread around the globe in February and March, shockwaves rippled through global financial markets.  Central banks acted quickly to flood the financial system with liquidity avoiding a full-blown economic crisis. This deluge of money went on to spark one of the most aggressive market recoveries of all time.  Markets went from being utterly distressed to euphoric in just a few months.  Now, one year on…

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Mohnish Pabrai: The Greatest Lesson Of 2020

Mohnish Pabrai: The Greatest Lesson Of 2020

At the end of January, value investor Mohnish Pabrai held a virtual Q&A session with Clemson University students. In the 45-minute session, the investor discussed what he called the “second-highest period of learning and growth” he’s experienced as an investor. Last year was a period of learning for Pabrai, and he’s attributed the bulk of this learning to his “good friend” Nick Sleep. Sleep ran an investment partnership I’ve covered before on this blog: The Nomad Investment Partnership. The partnership…

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5 Takeaways From Warren Buffett’s Annual Letter

5 Takeaways From Warren Buffett’s Annual Letter

Warren Buffett published his annual letter to investors over the weekend. The publication of this letter has become a significant event in the investment calendar.  In the annual correspondence, the CEO of Berkshire Hathaway usually provides his thoughts on the current state of the market and offers advice for readers on the topic of investing.  Here are my top five takeaways from the annual letter.  The power of share repurchases In 2018, Berkshire Hathaway changed its share repurchase policy. Previously,…

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The Secret of the Warren Buffett Stock Portfolio

The Secret of the Warren Buffett Stock Portfolio

There is one major secret of the Warren Buffett stock portfolio. Other investors often overlook this factor, but it has probably been the most critical contributor to the investor’s success over the past few decades. When combined with his stock-picking skill, this factor has helped the billionaire investor achieve the outstanding return he has today. The Warren Buffett stock secret Over the past few decades, thousands of individuals have tried to crack Buffett’s secret. They have been looking for a…

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How To Start Investing: 5 Simple Steps

How To Start Investing: 5 Simple Steps

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…

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The Best Method To Overcome Uncertainty It To Embrace It

The Best Method To Overcome Uncertainty It To Embrace It

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…

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When Is The Right Time To Start Buying Stocks?

When Is The Right Time To Start Buying Stocks?

At the time of writing, the MSCI World Index is up around 21% from its March low. This performance has stunned analysts and investors around the world. It seems to me this is one of the most hated stock market rallies of all time. It is easy to see why analysts are skeptical. The global economy is reeling from the coronavirus crisis. While governments are doing everything they can to help businesses survive, surging levels of unemployment, rising corporate failures,…

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The Best Investors Only Act On Their Best Ideas

The Best Investors Only Act On Their Best Ideas

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…

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Warren Buffett’s Advice On How To Value A Business

Warren Buffett’s Advice On How To Value A Business

Warren Buffett has been investing in stocks since his teenage years. Over the past seven decades, he’s bought and sold thousands of stocks across sectors and industries accumulating hundreds of billions of dollars in value for himself and his investors along the way. During his lengthy career, Buffett has become skilled at calculating intrinsic value, the underlying value of a business based on its fundamentals. Warren Buffett: Starting with the cash flow statement The exact process Buffett uses varies from…

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