Wall Street Analysts are bad at stock picking: Analysis of all sell and buy recommendations in 2003 showed that the portfolio with negatively viewed stocks gained 53.5% (over two years), more than 75 percentage points better than the market. Investing, contrary…
… 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…
The other day, an ex-colleague asked me to point him to some trading books that would teach him to get rich. I was cracking my head for some wisdom that could help him with in his journey as trader. After a while,…
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…
This is the tendency to avoid taking an action due to the fear that—in hindsight—it will turn out to have been less than optimal. Like leaving money in a bank account, rather than putting the cash in an investment with…