Portfolio Literacy is dedicated to transparency and promoting free financial literacy for everyone. Here are Portfolio Literacy’s latest blog posts. If you are looking for specific topics, the categories are at the bottom of this page.
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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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Bogleheads’ Investment Simplicity: The Three-Fund Portfolio Model Explained
Investing strategies often become mired in complexity, but the Bogleheads champion a philosophy that prizes simplicity and efficiency. The Bogleheads, a group inspired by Vanguard founder Jack Bogle, advocate for an investment approach that is accessible to everyone—not just financial experts. Central to their philosophy is the three-fund portfolio model, a strategy that simplifies investing…
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How Do Bonds Work: An Investor’s Guide to Debt Securities
Bonds act as loans that investors provide to governments and corporations for funding, in return the investor receives a (most often times) fixed rate of return on their capital. When an entity issues a bond, it is essentially borrowing funds from the bondholder and in return provides them with periodic interest payments. At the end…
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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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Achieving Portfolio Critical Mass: My Strategy for Exponential Growth
Understanding Portfolio Critical Mass The concept of critical mass for a financial portfolio can mean different things to different people, some might say its once you cross $100K net worth, or even once your portfolio contributes more growth than how much you invest into it. To me, portfolio critical mass is when a portfolio contributes…
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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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VOO and Chill: Adapting Your Portfolio Strategy with Age
Investing in a single index fund, such as the Vanguard S&P 500 ETF (VOO), has become a popular strategy for its simplicity and potential to mirror the performance of the broader market. Often dubbed “VOO and Chill,” this approach advocates for long-term investing without frequent adjustments, under the assumption that the market will generally appreciate…