Category: Learning to Invest
The analysis published under this category are as follows.
Wednesday, July 02, 2025
The Parasite (Israel) Retains Full Control Over the Host (USA) / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Dear Reader
The AI fruit machines have been going kaching, kaching, kaching, Nvidia $160, AMD $148, MGNI $21, RBLX $108, how high will the S&P blow? My base case 6350 by end August, though it's destined to be a jagged edge ride due to Trump uncertainty syndrome, who despite all of his election promises is playing the same old game of dollar destroying MONEY PRINTING with his $4 trillion Big Booty Bill which is already further inflating the bubbles as the markets are DISCOUNTING future INFLATION. And then we have Dementia, we don't know what he is next going to say that moves the market up or down, hence this IS the getting lucky rally! I mean some folk were commenting that they were in total despair when AMD was trading at $100 barely a few weeks ago, now it's retreating from $148! Such fragile investing minds now need to guard against becoming infected by FOMO by FAILING to press the SELL Button and I can see that many in the comments are asking what's cheap to buy! BUY? Only the idiots are buying right now, destined to lose most of what they invest!
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Saturday, February 08, 2025
Betting On Outliers: Yuri Milner and the Art of the Power Law / Companies / Learning to Invest
By: Submissions
By halfway through 2024, annual global venture capital funding had reached $94 billion across 4,500 deals. Most of these investments supported companies in artificial intelligence, financial services, and healthcare.
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Sunday, December 22, 2024
STOP LOSSES / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
A Patron asks -
"Hi Nadeem, How do you plan for the unforeseen? In RUS-UKR context, recent Russian declaration/updating of Nuclear Doctrine. That a Non-Nuclear state can be nuked under this doctrine. This may or may not happen. However that is not the point. I have not put the Stop Orders on any of the shares, may be being a rookie. Should there always be a Stop Order for each share I own to hedge against black swan events? Would negative 20% Stop Orders make sense? I am saying 20% just as a random number. "
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Sunday, December 22, 2024
Never Buy an IPO / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Here's a reminder of why you should never buy IPO's. not worth the risk. IPO's are accompanied with a huge amount of sales and marketing hype so that the insiders can offload their shares to retail crowd at an inflated valuation where the figures in the financial statements tend to be pure fantasy conjured out of thin air by the merchant banks.
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Sunday, October 27, 2024
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future / InvestorEducation / Learning to Invest
By: Sumeet_Manhas
In The Power Law: Venture Capital and the Art of Disruption (2022), Sebastian Mallaby delves into the transformative impact of venture capital (VC) on industries worldwide.
The book examines how some of the most successful figures in the field, such as billionaire Yuri Milner, have harnessed the power law to secure massive returns. These investors have played a key role in shaping the future of technology and innovation.
Monday, February 05, 2024
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Most investors obsess over trying to buy THE bottom or try and sell THE top and thus they either end up holding nothing or are weak hands eager to sell everything on every rally. Here I teach a simple mechanisms that stops one from obsessing over tops and bottoms but instead goes with the flow by trimming into rallies (banking profits) and accumulating on the dips with little thought on trying to buy the bottom or sell the top.
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Saturday, January 27, 2024
Investing in the Stock Market is Like Boxing With Mike Tyson - Investor Psychology / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Most market participants soon learn that stock market investing isn't as easy as the clowns on the CNBC cartoon network sales pitches present it to be. Investing is like getting into a boxing ring with Mike Tyson, become arrogant and you will get knocked out in the first round. Whilst all those fund managers and analists on the financial cartoon networks never even fund set foot in the ring. Think of the stock market as Mike Tyson, it will knock you out! All one can do is to learn through experience to dodge as many as those punches as possible, that is the way to win in the stock market.
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Sunday, January 07, 2024
Investing in the Stock Market is Like Boxing With Mike Tyson / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Most market participants soon learn that stock market investing isn't as easy as the clowns on the CNBC cartoon network sales pitches present it to be. Investing is like getting into a boxing ring with Mike Tyson, become arrogant and you will get knocked out in the first round. Whilst all those fund managers and analists on the financial cartoon networks never even fund set foot in the ring. Think of the stock market as Mike Tyson, it will knock you out! All one can do is to learn through experience to dodge as many as those punches as possible, that is the way to win in the stock market.
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Saturday, September 30, 2023
10 Tips To Get The Best Return From Your Investment / InvestorEducation / Learning to Invest
By: Mark_Adan
Every investor in financial development looks for the secret to maximizing returns. But how can one ensure their money works as hard as they do in the face of a constantly changing economic landscape? You've arrived in high income investing, where clever tactics can dramatically increase your earning potential.
Balancing risk and reward is not just about storing your money; it's about using it wisely to generate the greatest returns. In this post, we'll share 10 doable suggestions for improving your investment strategy, guaranteeing that you're not simply saving money but also significantly increasing your wealth.
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Wednesday, September 06, 2023
Reasons Why You Should Build Your Portfolio and Live Like Rich People / InvestorEducation / Learning to Invest
By: Submissions
Living like rich people is often seen as a fantasy that only a select few can achieve. However, building your portfolio can give you the opportunity to live a life of financial freedom and abundance. The advantages are undeniable, from wealth accumulation and passive income generation to financial security and access to exclusive opportunities. Here are several compelling reasons why you should build your portfolio and aim to live like rich people.
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Sunday, September 03, 2023
Why you’re Hardwired to be Pessimistic About Markets / InvestorEducation / Learning to Invest
By: Stephen_McBride
Fear is creeping in.After a blazing-hot start to the year, in which the Nasdaq notched its best first half in 40 years...
And the S&P 500 rallied 20%...
Stocks just slammed into a brick wall.
The Nasdaq and S&P 500 are each down around 3% this month. And investors are on edge.
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Thursday, June 29, 2023
Mark Denning’s 6 Effective Strategies To Ensure Success / Personal_Finance / Learning to Invest
By: Sumeet_Manhas
Entrepreneurs must recognize that building a successful business requires dedication, resilience, and a willingness to adapt. It's a transformative journey, one replete with both triumphs and trials. While these lessons are often best learned through experience, it’s worth heeding experts like Mark Denning, a leader in global finance who has helped manage more than $300 billion of investors’ money.
By staying focused and committed to their vision, entrepreneurs can navigate the winding path, overcoming obstacles and inching closer to their goals. While preventing business failure is never guaranteed, implementing these strategies provides a robust foundation for success. By constantly evolving, learning from mistakes, and staying passionately dedicated to their venture, entrepreneurs can breathe life into their dreams, create an enduring impact, and leave an indelible mark on the dynamic tapestry of the business world.
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Thursday, June 22, 2023
How to Profit From the Smart Money Footprints / InvestorEducation / Learning to Invest
By: Submissions
By Justin Spittler Imagine you’re sitting at a bar in Manhattan.
As the bartender’s making your drink, you overhear a conversation from the table behind you.
Two well-dressed men are talking. One looks familiar. He’s a hedge fund manager you’ve seen on TV.
You don’t recognize the other guy. But, from the sound of it, they work together.
Monday, June 19, 2023
Why Most investors Underperform the Indices / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Time and time again I hear this mistake in the comments section, S&P is going down down should I sell x,y,z, stock and buy back later. As I often voice the indices such as the S&P are a red herring, ask anyone heavily invested in the likes of Apple, Nvidia or Microsoft and so on, The S&P is definitely not of much use for timing purposes in terms of accumulating and distributing as we saw this past week opps to distribute in the likes of MGNI and accumulate in the likes of Qualcom. So keep things in perspective, the indices are just that indices, a metric to gauge the direction of travel on an average basis and to perhaps swing trade the index but they are not that useful for buying and selling individual stocks, in fact can prove highly dangerous! For instance if the S&P looks toppy and a stock breaks higher then the investor might sell the strong stock. (META) as the index was heading lower. Similar for when the index is going up and a stock starts falling and the investor buys on perception that the stock is now cheaper (SVB).
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Tuesday, April 18, 2023
Financial Advisors Take Heat for Market Losses (Will Anger Intensify?) / InvestorEducation / Learning to Invest
By: EWI
Was 2022 an aberration for the 60/40 allocation?
Many financial advisors steer clients who are willing to take some risk toward a 60% stocks / 40% bonds portfolio.
Alas, investors who followed that strategy in 2022 saw the value of their portfolios decrease substantially.
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Thursday, February 23, 2023
What to Do When Making an Initial Investment / InvestorEducation / Learning to Invest
By: Sumeet_Manhas
When you have decided to make an initial investment, there are many steps that you need to take beforehand to ensure that you are able to do this without a hitch. As such, here is what you should do when making a financial investment in 2023.
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Sunday, February 19, 2023
HOW to INVEST - THE POWER OF TRIMMING! / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
As a reminder when I see an opportunity to buy target stocks at deep discounts then I don't tend to flinch and buy the panics, the falling knives, even if takes me to well beyond my target exposure as has been the case for many stocks during the bear market of 2022 because of what will likely follow, a rally to TRIM.
The objectives is to bank profits and free up cash for future buys, as my target is to be approx 15% in cash (current 7.2%), as with many things I take trimming for granted and assume everyone does the same to some degree i.e. the more target stocks fall the more I buy with a view to engage in trimming during a subsequently rally. If you don't trim then it is something you need to adopt as part of your investment strategy as over time it does add up! Substantially for two reasons -
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Wednesday, December 21, 2022
CHANGE the Way You Think About Profit and Loss / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
From the comments section many patrons appear eager to trim holdings. However, this is a dangerous game and mindset to have one of selling on a few percent gain on fears that that smaller profit will evaporate into a loss.
Think about it?
If you follow this investing mindset what kind of portfolio will you end up with?
You will have a portfolio where you have sold all of your winners and are only left holding losers!
This is probably down to the way humans are hardwired to avoid pain, i.e. eat the food now rather than it be stolen or lost in the future.
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Monday, September 19, 2022
STOCKS BEAR MAKRETS ARE SUPPOSED TO BE PAINFUL! / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
The bottom line is that bear markets are supposed to be PAINFUL! And I can tell many investors feel that PAIN from the comments as they post the latest price of say Intel or AMD or TSMC or any other stock trading lower as if I have a magic button to press to make the stock go higher. So if you are feeling PAIN then go read my earlier recent articles on the psychology of investing in bear markets because bear markets are PAINFUL where the degree of pain experienced depends on what time frame on is focused upon.
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Monday, July 18, 2022
The Psychology of Investing in a Stocks Bear Market / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Every bull market is followed by a bear market and every bear market is followed by a bull market, where courtesy of the electron and inflation mega-trends the general indices are on an upwards exponential trend trajectory. Thus all bear markets are living on borrowed time and thus ones focus should be on accumulating positions in good stocks i.e. those that actually generate earnings and have good prospects for continuing earnings growth that courtesy of bear market negative sentiment results in prices trading to under value stocks i.e. to under X18 earnings, where everything above X18 is carrying a premium which is why I completely sold out of many stocks last year such as Amazon and Nvidia even though they had yet to peak due to the risks of a valuation reset as I covered in my in-depth analysis of August 2021
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