Showing posts from July, 2021

When should I sell my shares?

The article about when we should sell, starts with a story and food for thought: Visiting Warren Buffett’s house in a quiet neighbourhood in Omaha, got me thinking about the importance about having calm surroundings as intelligent investors. The calm neighbourhood is lush and green with trees, and it almost felt like being in a park or forest: calm and safe. As value investors we’re in a unique situation because we are not day traders or speculators, we don’t need to act fast; we are not a part of the fast-paced environment of Wall Street in downtown New York City. It’s in credibly important that we don’t make a swift decision and sell (or buy for that matter).  We must understand our reason for selling, get focused on the selling case and only act when we are certain that our selling parameters are met. Put ourselves in a quiet, safe and calm environment. In this article I’ll share my strategy of when I sell shares of my wonderful business as well as give some mental nourishment, so y

How do I find the best broker?

When I first started trading stocks over a decade ago, I had no clue what I was doing and I had no goal. So, I started out with a broker that was recommended on online forums. Once I became financially literate, it turned out it was expensive in fees, had limited access to certain securities, and didn't have the functionalities I needed. It was easy to switch but expensive to move funds from one platform to the other. I still have stocks in my first brokerage account but don't actively use the account anymore. In order to start trading stocks, you'll need to open a brokerage account. Since all countries have different brokers (According to Google Analytics my top readers come from around the globe: Denmark, USA, Norway, Germany, China and Australia) I’ll try to give some general information about what you need to be looking for when choosing a stock broker. With a brokerage account you have access to buying and selling securities like stocks. Today it’s very common to have

How to get rich? Mindset matters

Do you have limited money patterns that's holding you back from building wealth or getting rid of debt? When I was in my 20’s I had sleepless nights because of dept. I was buying "stuff" and paying with borrowed money. My account was always in minus and at the end of every month I was anxious because I could barely cover my expenses. At the time I was working as web editor at a popular women's magazine and I'm sure that from the outside it looked like I had all the success in the world and had everything put together. In reality I wasn't feeling that great and something had to happen! Something had to change. The thing that changed my life back then was asking myself some tough questions about my money past, present and future. I got the questions from a danish book (unfortunately it's not translated to English) by Mette Marie Davidsen. I had a copy of the book at home but never read it until one night - in the middle of the night - where I was sleepless a

How To Find a Stock Price? A Company’s Intrinsic Value

Buying a stock in a company means that you own a part of that company. If we had to buy an entire business today, what would it cost? A value investor wants to know what the company is worth – the intrinsic value - and then we want to know the company value per share. But we’re not done yet, because the essence of the value investing discipline is buying the stock at a lower price than what the company is worth. Phil Town, a well-known value investor, has a great analogy: He calls the intrinsic value of a company the “sticker price”. Town refers to a car dealership. All the cars in the show room have stickers with prices in the windows. This price is the car’s sticker price. But most people don’t buy a car at the sticker price but at a lower price. It’s the same thought we have for stocks. Buy it cheaper than the sticker price. We call this buying at a “margin of safety” When can you buy a company lower than the sticker price and how do you calculate this price? I’ll return with the an

When should I start investing?

At the time this article is published the stock market is at an all-time high. A lot of stocks are super expensive and over-prices, so right now is the perfect time for you to be a value investor. Yes, you read that right! Right now, is the perfect time to learn about value investing. Value investors are looking for wonderful companies at fair prices and since the prices aren’t fair these days, we can research and study wonderful companies. And if the stock market goes through a correction in the near future, we are ready to grab those wonderful companies at great prices. Use this time right now to your unique advantage and start your investing practice. If you don’t know about the value investing method right now is the best time to start studying and learning about this style of investing, so you’ll have perspective to make your own investing decisions. You’ll be able to gain knowledge right now, so you can get the confidence to start investing when a wonderful company is up for gra