Category Archives for Investing
What’s The Business Of Investing?
As an investor, I am in the business of buying assets that: 1. Go up in value due to an increase in earnings or due to speculative mania. 2. Pay a stream of cash to me as a dividend or other type of income stream. 3. Combine both items one and two. I am also […]
continue reading....Are You Smart About Your Emergency Fund?
So you have set up your emergency fund. Maybe you have even built out your financial buffer. I have a question for you: Are you maximizing the returns on your emergency fund? If you have a stable job and career, there is no reason not to invest your emergency fund assets in a certificate of […]
continue reading....Overcoming Fear On Your Path To Financial Independence
There are three key obstacles to becoming financially independent. 1) You have to earn significant amounts of money. 2) You have to save a large portion of what you earn. 3) You have to invest wisely. When it comes to challenge three–investing–one element holds most of us back the most. Fear. Fear of losing money. […]
continue reading....My Biggest Investment Mistakes, By Far
I have been investing since 1991. Yep, since I was 18 years old. I got an IRA that year and funded it with a small amount money. I had no idea what I was doing. None. I didn’t know what a mutual fund was. I hardly knew what a stock was. In truth, the only […]
continue reading....Personal Capital – The One FREE Portfolio Management Tool You Should Be Using In 2018
The Personal Capital Dashboard The Mighty Investor trifecta is to earn money, save as much as possible, and invest wisely. Each of these three factors is crucial to achieving financial independence. Without Earnings, you are dead in the water. Without Savings, you never develop the seed capital to start building assets. And without quality Investments, […]
continue reading....Why I’m Ditching Lending Club….
I have invested with Lending Club for four years. My returns have been decent. About 8 percent in mid-grade quality loans. (For those unfamiliar with Lending Club, the company serves as a platform allowing investors to make unsecured consumer finance loans to individuals.) However, I have decided to liquidate my accounts — one a regular […]
continue reading....Is Facebook Evil?
“Facebook Is Amazing,” the whole world in 2013. “Facebook Is The Devil,” the whole world in early April 2018. “Facebook Makes Money Hand Over Fist,” the whole world in late April 2018. One of the recurring themes of Mighty Investor is that manias drive markets and groupthink runs riot in the media. The treatment of […]
continue reading....The Ambassador’s Tale of Financial Woe (A True Story)
Ambassador X walked into my office, and she wasn’t smiling. “F$##$k,” I thought. It’s not normal for an ambassador to come to your office. You’re supposed to visit her. “Ambassador, how can I help you?” I asked. She sat down. Clearly in a sour mood. “F#$%#$,” I thought again. “I want to tell you […]
continue reading....Stock Market Risk – Key Challenges For the Medium-Term
I’ve been watching U.S. and global stock markets for decades. In my judgment, the key medium-to-long-term risks to the U.S. stock market have remained the same since at least the early 1990s. There are two main risks–the overall debt load to the U.S. economy and demographic trends. Let’s take each of these stock market risks […]
continue reading....Investment Bubbles – How To Spot Market Manias And Avoid Getting Burned
People get absorbed and carried away with certain topics. It happens over and over again. Most people don’t realize this while it is happening, though some do. I have used this aspect of human behavior as an investor since at least 1998. In my case I have tended to use it to recognize growing investment […]
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