Showing posts from March, 2022

Five Forces which Paralyze New Investors

These days the financial newspapers and commentaries from hedge fund managers and the financial community oozes of constant worry and occupation about downswings in the market. Sometimes this commentary is super optimistic and “stocks only go up” while currently it is gloomy because of interest rates, higher inflation, and a terrible and shocking war. This commentary paralyses some people, so they never get to invest. Are you that person, who doesn’t get to invest because the time never seems just right? The financial commentary is one of 5 forces that prevents us "common" stock investors from investing. According to Philip A. Fisher, investor and author of Common Stocks and Uncommon Profits (one of Warren Buffett’s favorite books) the other four influences are:   2: Government attitude to businesses The attitude of governments towards companies can impact the actions (or lack hereof) from beginner investors. Governments can either create laws, tax regulation, incentives, and

How to Transform Your Spending Patterns.

To change your financial future, and one day be financially independent, you must make some decisions with money, and one great step you can take is to change spending patterns. To keep your expenses low, control what you spend your money on and invest your money, so that one day you can live a life of financial independence. In this article you can read tips on how you can change from spending to being conscious and intentional with your money.  Every month you should review what you’ve spent your money on. You can do that by either logging in to your online bank and going through each expense you’ve had or you can use an app that tracks your expenses. In the beginning of my transformation journey I would check every expense in my account – now I use an app. Here’s what you can do: at the beginning of a new month save your latest monthly statement in an excel spreadsheet and color code every expense manually. Create a color for each category. This is one way to see which categories yo

Which Stocks Will Be Trendy in The Future?

The headline is a question that I often see posted in groups on social media. You might be thinking about this too which might be why you clicked the link to the article. But let me share a secret with you that many of the pro’s know, but only a few amateur investors know: investing is not about predicting trends. So, before you read on let me tell you honestly, that you’ll not find the answer for what will be trendy in the future in this article instead I’ll share what the pro investors do.  If you want to invest like the most successful investor – Warren Buffett, number 5 on Forbes’ Billionaire list – you don’t need to try to guess what will be trendy in the future. You don’t need to wonder if you should invest in hydrogen because some host on a radio show speculated it might be a future source of fuel, in diabetes medicine because you’re guessing that increasing obesity would result in more sales for pharmaceuticals, in gold mines because the future is unpredictable etc. etc.  Inste

What are Warren Buffett's Money Moves Right Now?

As an investor it can be difficult to find out who you should listen to and learn from. An idea to find the best investing strategy is to model successful investors – people who have done extraordinarily well over many years. Since 1965 Warren Buffett’s investments have increased 20% every year. Had you invested just $1 with him back then, you would’ve had $3,6 million today. Imagine the number had your investment been $100.000 - the money he asked his first partners to invest with him (in today's money that would be just south of $1 million, so definitely not a partnership that anyone could enter - hurray for the Berkshire Hathaway stock!) My purpose of this blog and everything I do is to describe what Buffett is doing so you can learn from him and so you can be successful in your life as an investor too. Today’s lesson is about what Warren Buffett is doing with this money these days and inspiration for you to do the same.  Let's start with a story and an important anniversary