Category Archives for "Investing"
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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 […]
continue reading....Extraordinary Popular Delusions and the Madness of Crowds – A Key Book for Financial Freedom
A crucial skill as one works towards financial independence is identifying and avoiding speculative bubbles. Spotting bubbles is not as easy as one might imagine, but here are a couple of indicators I have noticed over the years: Massive hype around an emerging technology that is reshaping society. Yes, the changes wrought by such a […]
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Are You A Genius Investor? Concentrate on Your Career
As noted before, most of us aren’t the Babe Ruth of investing. Therefore, we should just buy broad-based index funds (or ETFs) and move on with life. But there is another, subtle reason why index funds are the way to go for most people. Career Opportunity Costs When you spend a ton of time researching […]
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Are You A Mighty Investor?
What Makes a Mighty Investor? Good question. A Few, Simple Qualities Make The Mighty Investor 1. You know that your actions have consequences. That the daily decisions you make from moment to moment cumulatively have a massive impact on your life. That is one of the core beliefs of MightyInvestor.com–we can take cumulative action and […]
continue reading....A Random Walk Down Wall Street – A Key Book For Financial Freedom
Burton G. Malkiel’s A Random Walk Down Wall Street is another key book for anyone interested in investing and financial independence. First published in 1973, Malkiel’s classic has emerged as
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Tax-Efficient Financial Freedom
In 2016, my taxable income plummeted. However, my net worth went up considerably. How does this happen? Tax-efficient investing. Tax-Efficient Investing–Initial Steps Contribute to a Roth or Traditional IRA every year. (See info on the back-door Roth below.) Contribute to a Health Savings Account every year. Contribute to SEP-IRA when possible. If you have money […]
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The Stock Market Is Always Overvalued
The stock market has always seemed overvalued to me. I remember when I first started investing in the mid-1990s. The Dow Jones Industrial Average was closing in on 5000. It made me nervous. The market had moved too far, too fast. I just knew a correction was coming. The market is now four times higher […]
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Try To Get Rich Quick
If you are going to focus intensely on investing and building wealth, something will tempt you as too good to be true. If you are young, I hope you try it, and I hope you lose some money. It will teach you a harsh lesson early in life. Getting rich quick almost never works. It’s […]
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When Buying Stocks, Don’t Chase Yield – Or You Will Quickly Get Burned
If you are going to buy stocks, you are at some point going to become infatuated with dividends. It’s part of the process. But here’s a tip. Don’t chase yield. If interest rates are at two percent, and the overall market is yielding, two percent, there is a reason why a specific stock is yielding […]
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Stocks Are The Perfect Investment
For me, stocks are the perfect investment. Here’s why: Over time (20 years or more), stocks as an asset class have almost always performed better than any other investments. (This is for investments in the developed, western countries). Stocks pay dividends. I like the cash in hand. Dividends receive favorable tax treatment over earned income. […]
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