To build an Investment philosophy is to build a road map that guides your investment strategy and process. It is the framework that helps you make investment decisions, based on your beliefs and principles that correspond with your financial goals and tolerance to risk. A lot of investors lack clarity about the importance of a… Continue reading
Dividend investing is a type of investment strategy and philosophy that mainly concentrates on income-generating investments. A dividend investor believes that dividends have a significant role to play in the overall returns received by shareholders. This approach is based on the idea of being a part-owner of a company that is eligible to receive a… Continue reading
Quality Investing is an investment strategy and philosophy that aims to identify the best quality companies and hold them for the long term. A quality investor seeks to purchase financially healthy companies that have a strong track record of success, high earnings, and a market-leading position with a competitive edge. These high-quality companies often reflect… Continue reading
Growth Investing is an investment strategy and Philosophy that aims to identify companies with the potential to grow at an above-average rate. The primary objective of a Growth Investor is to increase their capital over the long term. To achieve this, growth investors typically look for companies in fast-growing industries that are often small-cap and… Continue reading
Value investing is a philosophy that disregards the efficient market hypothesis and instead, seeks to identify undervalued buying opportunities. The central idea behind this approach is that every company has an inherent intrinsic value that is often mispriced by the market. A value investor has one primary objective, to identify stocks that are priced lower… Continue reading
Inflation refers to the slow increase in prices of goods and services, which eventually leads to a loss of purchasing power of money over time. This impacts both consumers and businesses, as the erosion of money affects entire industries and not just specific products or services. The rise in prices across sectors can push up… Continue reading
Compounding is the “Interest on interest” and multiplies your capital at an accelerated rate the longer you leave it. Compound interest is calculated on the initial principal amount plus accumulated interest. Compounding works by retaining and reinvesting all interest without disrupting the process by drawing capital out. TABLE OF CONTENTS: What is Compound interest? Compound… Continue reading
An investor’s Philosophy will be deeply influenced by how they view, interpret, and interact with the stock market aka “Mr Market”. Before investors start creating an investment philosophy and strategy, they need to consider the two terms below. These concepts refer to the “belief” component when discussing and developing a strategy. Your views and alignment… Continue reading
The debate on holding cash (Dry Powder) will always rage on. The reason is due to cash being a low-yield investment compared to other options such as bonds and stocks. I have very different views about holding cash that is largely shaped by my experiences and my overall financial objective. TABLE OF CONTENTS: A brief… Continue reading
To “Stay the Course” is more than just time in the market. When investors hear the phrase “stay the course”, it often centres around the idea that time in the market is better than timing the market. I agree with this. However, when I am discussing the idea of staying the course it is about… Continue reading
