What’s the difference between stocks and poker?

When I first entered the stock market, I used to think I could beat it. I thought I could pick the best stocks and see the value of my account increasing every day, and this same feeling affects most people in the market. This is also what happens to most people at a poker table. Sometimes you just need to lose some money to get rid of your arrogance. The problem is that by listening to news from the stock

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The Power of Passive Investing

At the start of 2008, Warren Buffet made a million-dollar bet with the CEO of money management firm Protégé Partners. He bet on an index fund that invests in the S&P 500, while Protégé bet it could pick five “funds of funds” that would perform better. His side Warren Buffet’s thesis that the best thing a young man could do was to put his money in an ETF tracking the S&P 500 and just forget about the money. The compounding

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Financial Bubble

What is a financial bubble? How does it evolve? How can we protect ourselves from a bubble? I will try to answer these questions in this post, as this subject is always relevant but somewhat more relevant today when some assets are being traded near all-time high levels. A financial bubble (or economic bubble) happens when the price (e.g., market value) of an asset greatly exceeds its fundamental value, which is the value according to standard economic methods of valuation,

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Follow the Money (and the Millennials)

Once there were Baby Boomers and Gen x’s, and they lived happily. They had brands they really liked along with their favorite beers, cereals, and department stores. They also had their particular way of consuming—looking for a specific physical location, buying lots of things they didn’t necessarily need, and essentially really liking certain products. Then came the millennials, who are less of a brick-and-mortar kind of people. Millennials want to buy everything online. They want everything delivered to them very quickly,

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The Eighth Wonder

Compunding

Lacking financial literacy, many people are unaware of what might be the most important factor for increasing your own capital. It’s a term that Albert Einstein referred to as “the greatest mathematical discovery of all time” (and Albert Einstein knew something about math) and “the eighth wonder of the world.” If there is anything you need to know about finance, it’s Compound Interest (Compounding). But compounding is not just math or finance. It’s a more profound idea than it may seem

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Vocabulary for the Solid Investor

In the last few weeks, I have received some feedback saying that I have put the cart before the horse, and that some readers first need to understand the basic ideas and concepts of investing. I strongly believe in strengthening financial literacy, so I immediately thought about discussing important vocabulary terms for the new investor, who will hopefully become a solid investor. This discussion will not follow a strictly ABC approach but rather focus on the order in which a

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Does the President Really Influence the Economy?

Presidents come and go (in democratic countries), but they often leave their mark. They mark the country politically, economically, and even culturally. The president of each country is considered to be the most influential person in the country, and the president of the U.S. is considered to be the most influential person in the world. In most countries, the economic state of the country is likely to decide the winner of the elections. We all remember Bill Clinton’s saying “it’s

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What’s the Deal with Cryptocurrencies?

One of the trendiest subjects in the financial and technological world is cryptocurrencies. According to Wikipedia, the definition of cryptocurrencies is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are part of a technological revolution, but the scope of this post is to determine if they are part of an investment revolution. Many people are talking in favor of investing in cryptocurrencies and are definitely

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How will Robinhood affect your returns?

Robinhood is definitely a cool app. It is one of the fastest-growing apps these days, and when taking into account its particular field of financial services, its growth is even more impressive. Robinhood is a financial services company showing growth similar to that of an internet services company, with over 140K new subscriptions a month, and 17% monthly growth to their premium subscription. Robinhood is a disruptive company. It allows people to trade stocks with no fees. With this simple,

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Shit people (who don’t invest) say

They are everywhere around us. Some of my best friends are this way, and in this post I want to address all their sayings. All their clichés. I’m talking about people who don’t invest. People who have strong feelings about the stock market or don’t have any feelings about it at all. Some of them are just being lazy, but some are doing it out of principle. Let’s dig into their characters. Types of non-investors The lazy—He intends to invest.

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