Showing posts from May, 2022

How do You Unleash Your Investing "AHA!"?

Do you know of those moments in life where you get this big AHA!-moment and something you thought was a set way, or worked a certain way turned out to have a completely different angle to it than you thought to begin with? This article might change your world view in a profound way and you might change how you invest.  Investing and being successful at it is not about picking a stock because you believe that the stock price goes up.  Many individual investors believe that investing is about predicting a future trend and buying a stock that will likely go up. Making a bet on a stock. I used to believe the same and it turns out that Warren Buffett early in his career as a stock investor also invested with this mindset: picking stocks that he believed would go up. What made everything change – the time where the lightbulb went on for Buffett - was a book he picked up. The Intelligent Investor by Benjamin Graham.  “I saw this one paragraph and it told me; I had been doing everything wrong

Buffett's Answer to How to Time the Market

Timing the stock market means that you buy stocks when they’re at an all-time low and sell again when they’re at an all-time high. And in the recent shareholder meeting in Omaha, Buffett explained some of his amazing timings. I recently went to the Berkshire Hathaway Annual Meeting for Shareholders in Omaha Nebraska, which was an extraordinary experience. At the annual meeting it’s possible for shareholders to ask questions to Buffett and his business partner Charlie Munger and one shareholder stood up and had an interesting question about timing the market. “You’ve always said that it’s impossible to time the market, yet if you look at your track record you’ve had amazing timings with some of your key decisions”, the shareholder said and continued: “You got out of the stock market in 1969-70 and you bought back in in 1972-74, when the markets were really cheap. And you did the same thing in 1987, 1999, 2000, and in 2003. You're sitting on a significant amount of cash when the mark

Books to Help You Overcome Fear in a Mixed Market

Are you feeling fear in the current mixed stockmarket conditions? When checking the overall stock market conditions these days the prices a down, then up again and the instability leads to an increase in fear and questions on social media. For value investors this is the ideal environment because we are "buying the dip". In my network of value investors, we are excited to buy our favorite businesses when they go one sale. I’m incredibly grateful to have found value investing because I used to be very anxious and stressed during a period like this. These days I invest in great companies on sale. I feel calm and even excited when the market is down so I can buy some quality stocks at a discount.  The reason I’m sharing this is because there might be people out there who are feeling like I used to feel, and I want to share my knowledge with everyone, so everyone is able to invest while being calm and confident. Please reach out to me , if you want me to be your trainer and if yo

Warren Buffett's Advise on an Inflation Resilient Stock

"If you had to pick one stock to bet on to be resilient in inflation, which one would you choose?" At the Berkshire Hathaway Annual Meeting for Shareholders 2022 Daphne, a young woman from New York City stood up and asked this question. It was her 5th time at the Annual Meeting, and she wanted to know which one stock Warren Buffett would bet on in this inflationary environment and she wanted to know why that particular stock would do well in what would likely be a very difficult market. Though Warren Buffett had hoped for a question about apple pie, haha, he did give Daphne an answer that was much better than pitching an individual stock (and depending on your admiration for investing maybe even better than a piece of warm, homemade apple pie). I’ve translated Buffett’s answer and put my own filter on what he said. He talked to Daphne directly but in my translation, I’ll make it business focused. If you want to know what he said without my filter, the annual meeting can be f