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Showing posts from June, 2022

How Do You Get Financially Free?

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How do you recommend I get started on creating a plan to become financially free?  This is a question I often get because I’m on a financial freedom journey myself and have a plan and framework for how to get there. Financial freedom starts with just that: A plan. And the plan for financial freedom starts with a monetary goal.  How much money will freedom require? You need to know that number to set the goal and you can easily calculate this number. And then you must learn how to invest. No savings account will give you the rate of return you get with a very safe investment in the stock market. Read more about this fact in the article: Why Is Investing Better Than Saving? I invest because I want to be financially free. You think it's scary to start investing? I think it's scary not to invest because though I love my job at the LEGO Group, I don't want to work until I'm 70 years old. This is the current retirement age here and I plan on checking out earlier.  From my pe...

Is It Time to Buy the Dip?

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“Buy the dip” the words are thrown around on Facebook and other social media platforms. You might read these words and wonder what it means. What I have noticed is that every time the stock (or crypto) market dips a bit, some random person encourages followers to buy the dip. And this time the market dipped and the it dipped some more. And then even more. So, to not be in a situation where you’re in doubt if it’s the right time to buy that dip, here’s some information that can help you make a judgement on your own. As value investors we actually like to buy the dip. But we're different than most other investors because we are zooming in on one business and we've studied the business using our checklist before we even think about buying. And when we buy, we like to buy it at a "margin of safety" - or to use a more popular term: "buy the dip". In my investing course I dive deep into these topics, and taking the course is the first way to educate yourself in...

How To Recover from An Investing Mistake

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I was initially inspired by a story posted on Instagram in 2020 by Richard B. "Rich" Handler, Chief Executive Officer of Jefferies Group - an investment banking company. Rich Handler is not a value investor but I’m using this example because it’s solid advice and I’ve followed it myself (yes, I’ve made trading mistakes and other failures ). Everyone fails and from my point of view failing is important, however what is absolutely key is that you learn from your failures and don’t make the same mistakes over and over again. The way to learn from your mistakes is in this post, which is why I find Rich’s advice so valuable. 1) Write It Down Rich Handler mentions that you should write down your trading mistakes and be brutally honest about everything you did wrong. He suggests making a comprehensive list of everything that went wrong and to reflect about the bigger picture and recurring themes – is there a theme in your life of these types of mistakes? It’s the larger issues that...

How To Invest During a Bear Market?

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You might have heard the news that we might be entering a so-called bear market. The financial news sites write about it, and it’s talked about in podcasts and video shows. A bear market is when a stock index like S&P 500 or Dow Jones drops more than 20% from a recent peak. The S&P 500, which is the 500 largest companies in the USA, dipped its toes below 20% recently but went up again and at this time we don’t know whether we will be entering a bear market or not. It would be pure speculation to try to predict the future. But since it’s nice to be ready in case it happens, I thought I would share Warren Buffett’s strategy in a bear market. But first a couple of facts about a bear market. Photo by Janko Ferlic Fun Fact About a Bear Market So why is it called a bear market? Well though many investors are fearful in a bear market the fear of a bear is not the reason for the name. Apparently, the expression is referring to when bears attack they swipe their claws downwards.  A ...