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Showing posts from August, 2022

How Can You Tell If a Company Is Profitable?

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Some people will spend a lot of time doing research before they buy a new dishwasher or choose which model car they want to buy, but then when it comes to buying stocks, they don’t do any due diligence but buy what they heard about in a podcast or picked up in a social media post. It’s important to change your perception of what a stock is.  A stock is linked to a physical business with offices and machines etc. Let’s say you had a dream about owning a small cozy cafe, and a café just like that was put for sale in a neighborhood nearby. Wouldn’t you want to investigate the business before you acquired it? What if it had a lot of debt or what if the business came out with a loss every year - you would want to know that. It’s the exact same thing with a stock.  Though you can put less money into the company than if you had to purchase a café, and with a stock you can choose to only own one share of the whole business, you want to make sure it’s a healthy one.  How to tell i...

How Do You Find Out What Billionaires Are Buying?

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It is very easy to find out which stocks billionaires like Warren Buffett and Ray Dalio are buying and selling. Fund managers with more than 100 million under management must report to the governing body – the American securities and exchange commission SEC – which stocks they are buying and selling. This is done through 13F reports and the most recent report came out Monday. The report comes out quarterly and I have a calendar reminder on my phone, so I remember to check what has been sold and bought. Photo by USA International Trade Administration  Mohnish Pabrai, a multi-millionaire investor actually started using the copying strategy, where he copied Buffett’s investments. He describes his strategy in his book “ The Dhando Investor ''. The link is an affiliate link to Amazon and I recommend the audio book. Copying Buffett made him rich. But it can easily end as a bad strategy if you don't know what you’re doing. I don’t just buy what the millionaires are buying because ...

How Do You Invest Intentionally and With Your Values?

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“I’ve put my money into some stocks I really believe in. Where the company is focused on sustainability and green energy…” My friend took a sip at the wine glass and continued “I don’t know much about the business but I’m passionate about the cause”. She said that it was ok if she lost money because the cause was so important to her that she wanted to support the company and the cause - and if she got some money down the line that would be ok - but it was not the main objective of putting her money in stocks. Another friend said the exact same thing later that evening. Supporting a cause through stocks. It was interesting for me to hear how my friends chose to invest their money in the stock market and I believe there’s some important lessons that can be learned from them. I have two ideas for you if you’re an investor (like many of us) who wants to invest intentionally and to support your priority causes.  Collecting for SOS Children Villages Voting with your money is so incredib...

5 Ways to Get Financially Literate

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Congratulations, you’ve actually already done the first step by opening this article. Because getting started on your journey towards financial literacy starts with you getting knowledge about investing and here are 5 ways you can get financially literate. You’ve got the hunger and you’re here! For some people a breakthrough happens when reading and reflecting, others by watching a video while others learn best by participating in a course and speaking with others about investing. The first step is really for you to reflect on how you learn things best and then implement what you learn. So many people read a book or listen to a podcast but forget to take an action and implement what they’ve learnt. A course can be a great way to hold yourself accountable for following through.   1)    Read Investing Books Beginner books explain investing in a language that most people can understand and take the reader by the hand when entering this world of investing. Get some inspiratio...