I tackle tough investing problems, breaking them down into clear and actionable steps.
4M | An interesting hate comment..
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Hi Reader, As you can imagine, I get a few interesting comments on my YouTube channel. But, there's one investing criticism that I get far more than any other: WHAT IS THIS HATE COMMENT?As you know, I openly share my investing portfolio on YouTube.
You'll notice the similarities of my holdings, they each have:
By investing in these companies for the long-term. I weigh up the stock quality against it's average historical valuations. Trusting that eventually their share prices will reflect their consistent earnings growth. However, some viewers think that everyday investors can't compete with the big institutions.. DOES THAT MEAN AVERAGE INVESTORS CAN'T WIN?Well, not exactly. While EMH (Efficient Market Hypothesis) claims stock prices reflect all available information. The market isn't perfectly efficient, especially over time. Robert Shiller discovered that prices can be more volatile than company fundamentals justify. Suggesting that people and markets can overreact. Meaning, there's still opportunities for average investors. HOW DOES THE AVERAGE INVESTOR WIN?
See you next month, Ozbourne Foreman P.S. Have feedback about today's newsletter? Simply REPLY to this email - I'll surely read it! Disclaimer: I do not provide financial advice. Any views or opinions shared are for informational purposes only and should not be considered as professional advice. Always consult with a qualified financial advisor before making any investment decisions. |
4M | Monthly Investing Newsletter
I tackle tough investing problems, breaking them down into clear and actionable steps.
Hi Reader, The share price might be the first thing you see. But, it's often the last thing you should consider. WHY SHARE PRICE ISN'T EVERYTHING? Picture this: you're in the reduced aisle of a supermarket and you've found a product on sale. Before buying, you'd consider factors like the quality, price and expiration date, right? Investing should be no different. A low share price might appear to be a bargain, but this isn't necessarily the case. For example, imagine two companies in the same...
Hi Reader, As a private investor, I've spent years exploring analysis metrics to find hidden gems. But, there's one widely used investment metric that can be deceiving.. WHAT IS THIS METRIC? Many investors use this ratio to get a quick idea of a stock's value. And I'm willing to bet that you not only know this ratio, but use it regularly: Price-to-Earnings Ratio (PE) = Current Share Price / Earnings per Share A low PE ratio can indicate a 'cheap' stock. But, it's not as simple as it seems....
Hi Reader, We've all heard the saying, "buy low, sell high". But what if there's a strategy that could give you an edge.. IS IT POSSIBLE TO TIME THE MARKET? Imagine buying stocks on sale, then watching them rise in value just a month later! That's the idea behind the January Effect: Buy stocks that underperform before year-end, because they tend to rebound in January. But, there's a catch: This academic research had the benefit of hindsight - They already knew which stocks would underperform...