A value investor seeks to buy a stock for less than its intrinsic value (for example, buying for 50 cents a stock worth a dollar).
How does a value investor establish that the intrinsic value of a stock?Continue reading
Category Archives: Active investing
Chasing the Dream
People love to dream, they dream of the big pay-off, winning the lottery, a forgotten uncle leaving them a fortune in their will, finding gold or making a fortune on a speculative share.
Why else do we spend so much on lottery tickets when the odds are against us? Only around 60% of lottery ticket sales are redistributed in winnings and this is before you even count the odds of having the winning ticket. This is not the basis for a sound decision.Continue reading
How can I avoid getting caught in speculative bubbles?
Why is it that many investors get caught up in the hype of making a quick fortune and instead experience poor or mediocre results?
The financial world is littered with examples of speculative bubbles. This is often when common sense goes out the window and people get caught in the lure of making easy money. And it doesn’t seem to matter that these bubbles and the disasters that can follow are well documented.
30 Years on from the 1987 share market crash – What lessons can we learn?
Friday 20th October 2017, was the 30-year anniversary of the 1987 share market crash when the Australian share market fell 25% in a single day.Continue reading
Has Passive Investing Won The Active Versus Passive Debate?
“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”
Warren BuffettContinue reading