With a volatile market, even experienced investors can find themselves wondering “what if I sold everything and got back in when the market was more stable?” Although it’s tempting, in almost every circumstance it is much better to buy and hold. Don’t believe me? Let’s look at some data!
As many of you know, I am a marketer at a startup. That’s one of many reasons why I write about startups and equity compensation all the time. Like, maybe too much, but I digress. Although I love my job, someday I’d like to leave the startup world to be an entrepreneur. My problem is that I don’t have any genius ideas for a business. I am just into entrepreneurship, finance, and finding efficiencies. So where does that leave me? Enter the search fund.
Search funds are basically tiny private equity funds. A small group of people (1-4) will raise money to search for and find a business for sale, within a given price range, in an industry where they have some expertise. If they succeed in finding a target business, they do their due diligence and raise money to purchase it. Then they run it, and eventually sell it at a profit. Hopefully.
Earlier in the year, I wrote about search funds, and a couple of people tweeted me to tell me about a Search Fund Conference in Boston. I booked a ticket, and holy shit… I learned a LOT in a single day.
The Bitcoin bubble of 2017 has popped and the crypto market is undoubtedly in the middle of another brutal bear market with no end in sight. Bitcoin has seen this situation before and many supporters will argue that this is all part of a predictable pattern. But that’s hardly enough to solace investors who are currently experiencing an 85% drawdown from all-time-high prices.
As the stock market has been wildly gyrating over the past several months, I’ve come to a realization. Everyone is way too obsessed, and spends way too much time worrying about investment gains and losses.
Happy Holidays! Now, a short break from our regularly scheduled programming. RFG is officially over 70 posts old! It’s time for me to thank my readers, and ask the most important question of all: where do I go now?
Everyone wants a low risk, high reward investment. Unfortunately, there’s no such thing in the public markets, but there are ways that I can increase my chances of making a profitable investment, and decrease the risk at the same time. It’s not low risk, high reward, but it’s definitely close!
It seems like every day that passes, there’s a new variant of the acronym: fatFIRE, leanFIRE, seaFIRE… even baristaFIRE! Today, I am going to dissect each of the different variants of FIRE, starting with FIRE itself!
It’s easy to get discouraged by investing. With interest rates hovering at 3-5%, even modest retirement budgets require well over a million dollars in investments to work properly (e.g., $1,000,000 x 3% = $30,000). Many people get discouraged because they don’t have much saved now, but the truth is that the most important thing in any retirement plan is making repetitive, reliable recurring investments.
A search fund is similar to a private equity fund. Investors sponsor the search for and potential purchase of a small to medium sized business, to eventually be run by those who are searching for the business.
As the Fed has begun to raise interest rates -and the economy improves across the globe- yields have been rising, dropping prices for bonds across the board. As an investor, whenever I see the price of something I am invested in drop, my immediate reaction is to evaluate whether this is a good opportunity to add to my investment. So, is now a good time to add to my bond investments?
With the current expansion nearing its tenth year, it's actually possible that someone could have already worked a third of their professional career knowing nothing but expansion. I figured it might be interesting to describe the experience of a recession for all of those that have never known one, and provide some tips to soften the blows.
At some point, I’d really like to stop working. I enjoy my job, but I am guessing if I had the opportunity to simply “manage my own affairs”, I’d jump at it. I guess I’d like the ability to choose not to work. It’s a nice dream. But, without a job I will definitely need to increase both the number and the volume of my passive income streams.
Last week, I took an in-depth look at one of my favorite short ideas: Snapchat. This week, I am going to continue the series with Tesla. I hesitated a little before writing this post because this is honestly a 50/50 short at best. On the other hand, when Tesla goes into the gutter this year I'd love to be able to look back on this post of vindication... so here we are.
Although I am a huge believer in long term investing, I also occasionally ponder short term trades. I believe it's good to keep a lookout for opportunities, wherever they may be. On occasion, there I find a short that is really hard for me to NOT trade. This is one of them.
I’ve repeatedly seen two narratives told over and over again. First of all, debt is bad. Second, although debt is bad, having a mortgage is alright because it acts like a forced savings plan, slowly enabling borrowers to build wealth. But can't the “forced savings plan” idea can be extended beyond simply mortgage debt, if executed intelligently with low interest, short term debt?
Last week I wrote about the different types of diversification. To put it simply, there's quite a few. It can be exceedingly complex trying to figure out the best way to optimize your portfolio for growth and security. Luckily, there are a couple of free tools that can make everything much, much easier. This is how I would diversify my stock/bond portfolio if I had to do it all over again.
The more that I learn, the more I think about investing and how I can be more effective with my portfolio. As the stock market has begun to falter, this has come to the forefront of my mind. Every day I find myself wondering how I can be more diversified and therefore more insulated from the everyday ups and downs of each market.
Life is expensive, and that can make it really hard to save. With rent, cell phones, cars, healthcare, food, childcare, vacations and thousands of other little costs, it’s not unusual for someone to have 80-90% of their income disappear into the ether. Lately, I’ve been thinking about ways I can try to turn at least some of those recurring payments into recurring investments, or at least mitigate them so I don’t lose so much of my income to recurring expenses each month.
Forgive the alliteration. There's been an awful lot of hyperbole written about the markets over the past week. I thought it might be nice to take a deep breath and look at some raw figures that might help to put things into context. I don't have any real point here... take from it what you will.
Without an investment adviser, I've had to go and create my own portfolio. It's a little scary, for sure, but here's the thing: all it takes is effort. With enough research, patience, self-control and fortitude... I feel I can be just as successful as if I worked with an adviser. What's more, after seeing "how the sausage is made" working at a large wealth management firm, I would say the benefits outweigh the risks.
Because investing is so vital and so confusing, most people decide to hire an investment advisor instead of doing the work themselves. I firmly believe that most people will be better off avoiding the fees and cookie cutter advice.