Showing posts from October, 2022

What Can You Do If You’ve Lost a Lot of Money in The Stock Market?

One mantra that is echoing these days is: “you haven’t lost money until you’ve sold your stocks”. There is some truth to that saying, so if you’re holding stocks right now that are showing a loss of 50, 70 or 90% this is what you can do to take stock of the situation, regain some faith in your ability to make decisions, and decide on your next step. Don’t sell a wonderful business (but you might want to sell a bad businesses) Some businesses are of high quality – we call those "wonderful businesses". They have great leadership and a competitive advantage . Some businesses are sickly, they are not profitable and/or have a lot of long-term debt. Review the companies that you hold in your stock portfolio by using my checklist – are they healthy or are they sickly. If you don’t know how to use a checklist, watch this free webinar . It's not too late to find out if it’s trash or treasure you hold, and you can make a sound decision based on your new knowledge. Don't trade

How to Reduce Cost Price on Your Stocks

If you’ve bought a share in a wonderful business earlier this year and are experiencing that the stock price keeps falling you might be in a situation where you’re considering selling. But what I will teach you today is to do the exact opposite – I’m going to not only teach you why to hold on, but also how you can reduce the cost price of that wonderful business in the current climate. The first thing you want to do before you proceed is to check if the business is still wonderful. Check your 3 key numbers and revisit the case you’ve built using your checklist . Is the company still healthy and wonderful? Then keep calm and carry on reading… Click to download this phone wallpaper Averaging down What you can do is that you can lower the money you have in the investment. This is called reducing your basis or averaging down. A strategy you should only use on quality businesses. Let’s say you buy a share in a healthy company XYZ at $100 a share. Since your purchase you learned that this p

How To Boost Portfolio Returns

The biggest expense in personal finance is taxes. And minimizing investment taxes is an important step to boosting your return. But when you trade stocks, you might not be thinking about taxes – at least that’s something I must admit I didn’t pay attention to.  But getting familiarized with taxes when it comes to investing, is key. The reason why you don’t have it on your radar might be when you sell a stock and get the payout of your investment you don’t immediately see the cut that the tax man takes. But look at this visualization below - knowing how to minimize taxes are key to maximize your return.  Click on the image to zoom The example above is from the USA and the American capital gains tax - if you’re from ex. Denmark there are other rules and they’re pretty simple: you pay 27% capital gains tax for gains below DKK57,200 and if your annual gains are above, you pay 42%. Other countries in the world have no capital gains tax on stocks. I will continue to describe the American sys

How To Shift Focus from Fear in This Market

In a lot of groups on social media discussing the stock market, there’s a lot of fear these days. One person was asking, when does the downward spiral in the stock market stop? He was clearly frustrated and likely due to having a portfolio in red. The comments were generally mean and many people were mocking him. I felt bad for the guy – it’s not a fun situation to be in.  There's really no need for being mean or laughing at others these days. Let's help each other out instead and that's what I will do with this article.  In the post from the fearful guy a lot of people shared their take on when the market would rebound. But the fact is that no one has a crystal ball that can predict when this market will end. There are hundreds of thousands of experts out there – if not millions – that are predicting when this will end and the only thing we can be certain of is that with so many opinions, one of them will be right in their prediction. Someone will be right about their prog

Guest Article: The Mindset of a Value Investor

Today I have another treat for you written by Wes  Chambers -  also known as @investingwithwes . Wes is an incredibly inspiring and phenomenal investor to follow, and I recommend that you give him a follow on Instagram if you aren't already following him. So much excellent content and I'm truly grateful to be able to share this second guest article from Wes. Enjoy! Mindset of a Value Investor  By Wes Chambers In this post, I am going to break down the mindset someone needs to have before they become a value investor. The 4 main characteristics I am going to mention are: Business Owner Mentality Different Time horizon Demand A Huge Margin of Safety You Are the Minority Business Owner Mentality. To become a value investor, you must adopt a business owner mentality. 95% of investors in the stock market don't think about investing the correct way; they see stock as ticker symbols that bounce around. To become a value investor, you must have the mindset that you're buying a