Can You Invest on Your Own?
Yes you can invest on your own and be very successful at it. You don’t need to rely on financial planners, mutual fund sales people, or investment advisors.
Investing isn’t rocket science and you certainly don’t need a degree in finance or economics. My approach to investing is simple, buy stocks in quality companies when they are undervalued. By quality I mean companies that:
- Are financially healthy
- Have low debt
- Have very little competitors
- Are virtual monopolies in their field
- Are co…
Mutual Funds vs Simply Investing
In this example let’s take a look at $10,000 invested in mutual funds and $10,000 invested on your own, what I like to call the Simply Investing way.
Both methods are simple, in option #1 you simply handover $10,000 to your mutual fund advisor. In option #2 you simply deposit $10,000 into your trading account and purchase quality stocks when they are undervalued.
After 10 years which investment will be better? Take a look at the table above, and you can clearly see that the Simply Investing …
490,409% Return? Who is this man?
Which American corporation has had an overall gain of 490,409% from 1964 to 2010 and who is this man in the picture? The company is Berkshire Hathaway and it is owned by the man shown in the picture, Warren Buffett. In 2011 Warren Buffett was ranked the third wealthiest person in the world.
Buffett was born in Omaha, Nebraska in 1930. Born to middle class parents, Buffett never inherited large sums of money or won the lottery. While studying for his business degree at the University of Nebraska…
Why Investing Isn’t Sexy
My approach to investing isn’t sexy. In fact my approach is rather boring and simple, just the way I like it, because it’s profitable!
I don’t invest in the high technology companies, airlines, automotive manufactures, or entertainment companies. My portfolio doesn’t consist of flashy companies selling the latest gadgets. I avoid these companies, because they do not have:
- Regular dividend payments, or
- Consistent earnings, or
- Consistent dividend growth, or
- A long-term history of dividend p…
Why I Left the Mutual Fund Industry
My Own Advisor also has a great link to a mutual fund fee calculator which you can use to estimate the true cost of your funds. In his example a $25,000 investment in the RBC Canadian Equity Fund would have cost just under $6,400 in fees! I’ve written about high mutual fund fees before, and I urge you to see for yourself by using the mut…
How to Be a Successful Investor
Here are 5 ways to help you become a successful investor:
1. Educate Yourself
Don't worry this doesn't mean going to university to get a MBA, or a degree in finance, or accounting. I am talking about practical education that you can implement right away on how to invest for success. Education is the first and most important element, because without you will not be able to implement the rest of the items in this list. A lit bit of effort in education will reap huge benefits for you for the rest…
Jack and Jill – A Fairy Tale or How Jack Lost $97,429
Don’t wait to start investing. The sooner you start the more money you will make.
Once upon a time there lived two friends in a land far far away, both were the same age with the same birthday but very different in all other aspects. Jack was the impatient type, always wanting to “live large” and spending everything he earned. Jill was more patient and a visionary, she always thought long-term.
Jill started investing at the age of 25, she invested $1200 each year and earned 6% annually. Jack …
Why Bother Investing?
Why should you invest your hard earned money? Why bother to learn about investing, and then spend time implementing investing strategies? Most people will respond: “Because I want to make money!” Why do you want money? You want money because it will give you the freedom and time to do what you love. Here are some of the reasons why people invest:
1. To live comfortably
2. To travel
3. To support their children/parents
4. Buy the house/car/clothes they always wanted
5. The ability to retire …
Whose Interests Are Truly Being Served?
How do you tell financial advisors and product pushers apart? Is your financial advisor looking out for your best interest or their own? A recent article from Morningstar identifies 4 things to consider before working with a financial advisor. I’d like to add one more to the list:
Is the advisor living paycheck to paycheck?
In other words if the financial advisor isn’t wealthy himself, how can he or she help you to achieve financial success? Ask any potential advisor how long they have been fo…
Saving money for a vacation, car, or house? Don’t put that money in stocks.
Don’t put your short-term savings in stocks and that includes ETFs, and equity mutual funds. If you are saving money to go on vacation, buy a car or a house in less than 5 years then don’t put that money in stocks. Investing in stocks requires a long-term time horizon, generally more than 5 years, and the more the better.
Imagine you are trying to save $5000 towards a vacation, car, or down payment. You don’t need the money till 2 years from now so you invest it in stocks. In 2 years when it co…