Investments Archives - New Trader U

People Who Build Wealth Make These 5 Asymmetric Investments

The difference between building wealth and staying financially stagnant often comes down to one critical concept: asymmetric investments. While most people focus on symmetric exchanges, where what you spend equals what you get, wealthy individuals seek opportunities where the potential upside dramatically outweighs the downside risk. An asymmetric investment is any opportunity where you risk […]

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5 Mathematically Sound Wealth Building Purchases

Investing, Investments, Wealth / Steve Burns

Building wealth requires strategic purchases that leverage mathematical principles like compounding gains, capital appreciation, and income generation. The key lies in prioritizing investments with strong historical returns while minimizing risk through diversification. These five mathematically sound purchases below can transform your financial future when implemented consistently over time. 1. Index Funds and ETFs: Harness the

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The 3 Best Middle-Class Investment Strategies

Investing, Investments, Stock Market / Steve Burns

Picture this: you’re earning a decent living between $50,000 and $150,000 annually, but you’re watching your savings account earn practically nothing while inflation chips away at your purchasing power. You should be investing, but the financial world feels overwhelming with its complex terminology and endless options. The good news is that building wealth doesn’t require

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3 Best Passive Income Ideas to Generate Cash Flow

Investing, Investments, Wealth / Steve Burns

Understanding and implementing effective cash flow strategies is critical to financial freedom from generating passive income. As we navigate an ever-changing economic landscape, the allure of earning money with minimal ongoing effort has never been more appealing. This article dives into three quintessential strategies for passive income: investing in dividend-paying stocks, selling call options on

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Two Golden Rules of Competitive Advantage: Charlie Munger

Investments / Steve Burns

In the ever-evolving business landscape, understanding the underpinnings of competitive advantage is crucial. Few individuals grasp this concept better than Charlie Munger, renowned investor and vice chairman of Berkshire Hathaway. In this article, we will delve into the two guiding principles that have steered Munger’s remarkably successful investment strategy and two other edges that Buffett

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Speculating vs Investing

Investing, Investments, Speculating, Speculation / Steve Burns

“An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” – Benjamin Graham Example of Investment and Speculation An investment is buying an asset with intrinsic value that has cash flow and/or physical asset value. Speculating is buying something in an

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Negative Correlation Definition

Investing, Investments, Portfolio / Steve Burns

Negative correlation in markets, also known as an inverse correlation, indicates that two securities have a relationship where their prices move in opposite directions from each other most of the time. As an example, if gold and the U.S. dollar have a negative correlation, as the dollar goes up in value then gold will go

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