Investment styles are categorized into passive or active investing rather than categorized by an investor’s 2 sensible emotional investing choices. These two styles reference the amount of work commitment involved for an investor. A passive style doesn’t require much time commitment whereas an active style does. This isn’t always accurate, and there is a bigger … Read more
Years ago I read an article on golf magazine where the writer maintained described two main types of professional golfers Steady Eddy and the Gunslinger. Both types were very capable of winning tourneys, but both types played with different mindsets. Steady Eddy was the type of golfer that would consistently shoot good rounds with minimal … Read more
An Investor’s smart allocations and rebalancing of their portfolio not only determines a large portion of the risk that a portfolio will have, but it also can greatly influence any potential market edge an investor may have. How often and when the portfolio is rebalanced plays another role with performance. Both over time if handled … Read more
Qualcomm (qcom) was the darling of the 2000 tech bubble. The story of QCOM’s stock rocketing to all time highs in an incredible short time frame in the late nineties and 2000s. Then in about a year it lost half its value and then within two years almost three quarters of its rapid increase was … Read more
On March 13, 1997 Microsoft stock went public for $21 a share. Today, thirty-four years later the stock has made many investors wealthy. Below is a sample list of similar stories. You can find and use an online total return calculator to see what $1000 invested at the IPO would be worth today. Try and … Read more
There are only two elements of risk that anyone can truly define. We know risk is something that could happen in the future, and we can’t see it or touch it. So risk is a projection of possible unknowns events or occurrences. The insurance industry has built a huge industry around the concept of spreading … Read more
Below is a story posted on Twitter and the article from MarketWatch. It’s a sad story, but often true. I’ve been in the market for over thirty years, and I’ve seen it ruin friendships, wipe out people’s accounts, destroy people’s lives, and result in suicide. Never trade on margin, or get into products you don’t … Read more
In Robert Kiyosaki’s highly popular book titled Rich Dad Poor Dad he shows the difference between assets and liabilities, and further discusses the topic of your home. He says a home is a liability, and not an asset. He’s right. Even though your home is an emotional piece of what you own in your life, … Read more
The best data is usually a large sample of data when trying to infer patterns or results based on occurrences. Insurance companies use actuaries tables consisting of large data to determine their exposures to a potential risk. As an example, the insurance companies have compiled many years of historical data for a young driver having … Read more
Jim Simons, the famous mathematician and hedge fund manager of Renaissance Technologies, has built a money management empire based on using mathematical models. Renaissance manages an estimated $21 billion throughout its funds, and it’s $3.5 billion Medallion Fund has amassed estimated annual returns of 35% since March of 1988. Models are a powerful tool in … Read more