We sometimes tend to think that ideas and feelings arising from our intuition are essentially superior to those achieved by reason and logic. As such, intuition—the good old “gut feeling”—has come to be idealized as the Noble Savage of the mind, fearlessly cutting through…
Now, that is a no-brainer! Others might even call this a “know-brainer”. Still, I know from personal experience that this principle is not easy to apply; nevertheless, it is worth your utmost attention as it is the key to growing your savings. People are always talking about character,…
Your answer might be a clear “Yes,” in case you have loads of money and zero concerns about it—EVER—being depleted. Congratulations! But in all other cases, I would recommend that you get yourself informed about how money (in general) and the stock market (in particular) work.…
Are you a bit shortsighted? Well, I was. Do you suffer from Myopic Loss Aversion—when it comes to money? Myopic-what-aversion? Myopic Loss Aversion is the tendency to focus on avoiding short-term losses—even—at the expense of long-term gains. As a consequence in the investment field—and…
Let me share some thoughts about what we call Home Sweet Home, or what behavioural economists call Home Bias. Or what investors need to remember—to achieve a diversified portfolio. Have you heard of what investors in Sweden do ? Although all of…
… is not really a secret at all. Nevertheless, still not enough of us are doing the obvious: Investing in an asset class that has the highest chance of beating the inflation rate. Inflation is the opposite of a gift that…
They are Exchange Traded Funds. Huh? Simply, an ETF is an investment fund that is traded on a stock exchange. Although the ETF is similar to a mutual fund (or unit trust) and comprised of many individual investments such as stocks, bonds, or both,…
I am a huge fan of the exponential function. It is simply magic. This ninth world wonder—as Albert Einstein (or some other clever person) called it—can make everyone a millionaire with merely saving 1$ a day. That’s a bold statement that…
Consider a scenario of two people: each 25 years old, David who makes $40,000 a year and Michael who makes $80,000 a year. Each year, they get a 2.5% raise and both work until they are 73 (yeah, this might be the regular…
Endowment Effect is the tendency to fall in love with what we own and makes us resist change. Or in other words, this is the tendency to consider something you own to be worth more than it would be, if you didn’t…