The big killer to any portfolio is too much exposure to a single stock that plummets. It’s the type of thing that looks oh-so-obvious in hindsight because it’s clear after the fact that you bought into a story, not fundamentals.
There have been lots of “stories” in recent years:
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The past few weeks have been difficult for Amazon investors. After the company announced slowing revenue growth and weaker-than-expected financial guidance, the stock price plummeted.
Although investors were likely troubled by Amazon’s poor quarterly results, they may have missed one of the most important figures in the company’s filings with the Securities and Exchange Commission (SEC).
It’s been a rough time for Amazon. The company announced lower-than-expected sales results and fourth-quarter sales guidance that missed analyst estimates during its most recent earnings call, resulting in a share price plunge year-to-date of 43.2%.
What does it all mean for Amazon? Is the stock a steal or is there more to fall?
Warren Buffett and his partner Charlie Munger are two of the most successful investors in history. The cornerstone of their investment strategy is focusing on companies with a “moat.”
A moat is a competitive advantage that allows a company to maintain its market share and profitability over time.
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If there’s on thing that won’t change in a volatile market, it’s human behavior. Whether it’s cycles of fear and greed, currency debasement, or euphoria and panic, one thing is constant over the centuries and even millennia, and that is people will react the same way to similar events quite predictably.
One constant through all the ups and downs is that humans will figure out a way to connect,
Airbnb is one of the most successful startup companies in recent history. Not only has it disrupted the hotel industry, but it has generated billions of dollars in revenue. So what is behind Airbnb’s success, and why should investors take a closer look at the company?
Airbnb is an online marketplace that connects people who need a place to stay with people who have accommodation to rent out.
It’s not always obvious where to go to make more money. Side hustle? Buy crypto? Bank savings account? Bonds? What’s the right answer? Here are 9 statistics that show why investing in the stock market is perhaps the best wealth creation engine of all time.
In real terms, $1 invested in the stock market has grown over the past 150 years to as much as $19,000.
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50% a year? Impossible, you think. How could Warren Buffett possibly earn that much from a single investment?
You’re about to find out.
There’s a reason Warren Buffett earned the name the Oracle of Omaha. He can see (decades into the future) the effects of powerful forces that move slowly from one day to the next but that create tectonic shifts in economic fortunes over time.
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Charlie Munger said at the 1996 Annual Berkshire Hathaway Shareholder Meeting: “Warren talks about these discounted cash flows. I’ve never seen him do one” [“It’s true” replied Buffett. “If (the value of the company) doesn’t just scream out at you, it’s too close”]
“Since I know of no way to reliably predict market movements,
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