Successful entrepreneurs are usually hard-working, brave, and energetic. These traits serve them well since business success requires dedicated hard-work, risk taking, and boundless energy. So why are entrepreneurs often good business people but such bad investors? What lessons can we learn from their investing approach? This post suggests the challenges entrepreneurs face when making passive investments and the strategies that can...
Dividend investing is a popular way to earn passive income. So, this post describes ways to evaluate dividend stocks to create a sustainable income from your portfolio.
Each transaction we make in our investment portfolio adds friction and potentially drags down our returns. During times when the stock market is falling, many investors fall victim to fear and follow the headlines by selling their investments. The classic “buy high, sell low” mentality haunts many investors. To help you combat those tendencies, this post provides 4 reasons why you...
The disposition effect is an investing bias that refers to our tendency to prematurely sell assets that have made financial gains, while holding on to assets that are losing money. We are driven to sell our winning investments to ensure a profit but are averse to selling losing investments in hopes of turning them into gains. The disposition effect is an investing bias that...
Investors may wish to harvest capital losses by selling shares and then re-purchasing those shares immediately with a lower cost base. Doing so would result in a tax benefit because investors could use the resulting capital losses to offset capital gains from other parts of their portfolio. But, CRA has closed this loophole by the “superficial loss” rules. To avoid...
When I was a kid, I had a Nintendo plugged into an old black and white TV in my bedroom. The best game I had was RBI Baseball. In it, you can run “watch” mode. So, instead of playing against the computer, you could simulate games where the computer would play itself. I started investing my time running simulated...
Wealthy investors have many of the same fears as everyone else, the stakes are just higher when you’re rich. This post describes five common threats wealthy investors face and how to combat them. Threats faced by wealthy investors
Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original or desired level of asset allocation or risk. This post will describe some methods to rebalance your portfolio, and consider alternative ways to think about the concept.
This post describes three common investing biases and how to overcome them. Overconfidence Bias, Loss Aversion Bias, and Confirmation Bias are each discussed. Overcoming these common investing biases will greatly improve your portfolio’s performance and help you gain more consistent returns that meet your objectives.
