Category: Experienced Investors
I am a CPA Candidate sharing my experience building my portfolio while in my 20s. During this process of sharing information online I hope to increase free financial literacy access for all.
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The Only Free Lunch in Investing is Diversification
In the world of investing, you often encounter the phrase that there’s no such thing as a free lunch, implying that it’s impossible to achieve a reward without taking on some risk. However, diversification stands out as a unique strategy, often referred to as the one ‘free lunch,’ where you can potentially reduce the risk…
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What does it mean to be an Accredited Investor and How to be One?
Wealth can be both a measure of financial success and a gateway to exclusive investment opportunities. As you explore the realms of investment, you may encounter the term ‘accredited investor,’ a designation that carries significant meaning in the financial world. Being an accredited investor denotes that you’ve met specific regulatory guidelines which, in turn, allow…
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Net Worth: Knowing Your Entire Portfolio of Assets and Liabilities
Understanding your net worth is a fundamental aspect of personal finance management. It provides a clear snapshot of your financial situation by balancing assets against liabilities. Totaling the value of everything you own and subtracting what you owe gives you a figure that can be pivotal for making informed financial decisions. This number serves as…
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How was the 2024 Berkshire Hathaway Shareholder Meeting?
Attending a Berkshire Hathaway annual shareholder meeting is akin to a pilgrimage for investors seeking wisdom from arguably the most celebrated names in the world of finance, Warren Buffett and the late Charlie Munger. Held in Omaha, Nebraska, this event is more than a standard review of financials; it’s a festival celebrating the culture and…
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Investing Community Spotlight: BiggerPockets – The Real Estate Investor Network
Investing in real estate has become a popular avenue for wealth building, and platforms like BiggerPockets have emerged as vital resources for both novice and seasoned investors. BiggerPockets is a comprehensive online community that leverages the collective knowledge of a diverse group of individuals who share a common interest in real estate investing. The platform…
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What is Sequence of Returns Risk and How to Mitigate it in Your Portfolio?
If you intend to use money in your portfolio to buy a home, afford a wedding, or maybe you are getting ready for retirement, one financial concept you need to be acquainted with is sequence of returns risk. This term refers to the uncertainty and potential impact that the order of investment returns can have…
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Investing Community Spotlight: The Boglehead Philosophy
The investing world is filled with different philosophies and strategies, but few have garnered as much respect and following as the principles of being a Boglehead. Named in honor of John Bogle, the founder of Vanguard Group and a staunch advocate for individual investors, the Boglehead approach to investing is centered on simplicity, low-cost index…
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What is Concentration Risk and How Can You Mitigate it in Your Portfolio?
Concentration risk is a potential pitfall in investment portfolio management, manifesting when a significant portion of your portfolio is tied to a single investment, asset class, or market segment. Concentration risk is not inherently bad however, it is a negative opportunity that is present in your situation. It essentially magnifies your exposure to the risks…
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The Best Investment Strategy is Set It and Forget It: A Guide to Long-Term Growth
Investing can sometimes seem like an activity that requires constant attention and fine-tuning. However, having an automated ‘set it and forget it’ investment strategy offers a compelling counterpoint, advocating for a long-term, hands-off approach. By establishing a well-diversified portfolio aligned with your investment goals and risk tolerance, you can minimize the need for ongoing management.…
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Dividend Irrelevance: The Lack of Impact on Stock Value
Dividend Irrelevance Theory, a fundamental concept in corporate finance, conveys that the dividend policy of a company is inconsequential to its valuation. Pioneered by economists Franco Modigliani and Merton Miller in their 1961 paper, the theory points that the value of a firm is determined by its earnings and the level of risk of its…