In his 1962 partnership letter, Warren Buffett gave his investing clients an overview of his value investing strategy he calls The Generals.[1] “We usually have fairly large portions (5% to 10% of our total assets) in each of five or six generals, with smaller positions in another ten or fifteen.” – Warren Buffett This example […]
Warren Buffett: How Many Stocks Should You Own? Read More »
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” – Warren Buffett Warren Buffett only buys stocks when he believes he’s getting a great company for a good price. He is able to get the best companies at great prices during bear markets. This is when he believes the biggest
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Success is not random and it’s not luck. There are clear patterns that are obvious in hindsight for people that end up as success stories. It doesn’t matter as much where you start as your behavior and habits determine your destiny. Many rich kids end up broke and many poor kids end up rich, an
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The calculation of your monthly mortgage payment has many inputs that effect the amount you will be paying. What affects a mortgage payment? How much your home costs. The time duration of your loan. Your down payment. Your interest rate. Home insurance. Property taxes. If you need private mortgage insurance. Home association fees. How much
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One day trading rule that many new traders don’t understand is the “pattern day trader” rule or PDT. The Pattern Day Trade (PDT) rule is enforced by the U.S. stock market regulatory body (FINRA). This is a rule for limiting the amount of active day trades a small account trader can make in their stock
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Michael Burry began warning about the stock market being in a passive investing bubble. The primary area of passive investing in 2022 is putting money into the SPY ETF and low cost S&P 500 index mutual funds. According to Bloomberg approximately 21.2% of all the S&P 500 companies shares are now held inside passive funds
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“Inflation is a very serious subject, you can argue it’s the way democracies die.” – Charlie Munger Charlie Munger goes on to explain the political dangers of hyper-inflation running too high in a country. “What brought in Hitler was the combination of the Weimer inflation, where they utterly destroyed the savings of the middle class
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There are seven financial sins that will keep you broke. Taken to excess they can even make you poor. Broke is a state of mind while poor is a condition of poverty. Broke is being deeply in debt but still getting a $8 coffee while being poor is not being able to buy groceries when
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The traditional way to see how much of a mortgage payment you can afford is to take your monthly income and multiply it by 0.28. So if your monthly income was $5,000 this formula would say you can afford a $1,400 a month house payment. So someone with a $60,000 annual income could afford a
How Much House Can You Afford? (The 3-30-10 Rule) Read More »
Emotions are the natural instinctive state of mind created internally as a reaction to your circumstances, derived from your mood, or arise based on interactions in relationships with friends, family, or strangers. These are feelings and different from logic, thinking, or knowledge. Emotions are messengers to your nervous system on how to react to a
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