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
An investment time horizon is the length of time investors hold an investment until they need the money back. Without knowing how long you want to or need to stay invested, investors may not be adequately allocating capital to the right asset classes to help them achieve their financial goals. TABLE OF CONTENTS: What is… Continue reading
To form your Investment Philosophy, you need a general idea about what Investment Risk is and what your tolerance towards it is. Once investors understand the types of risks involved, they can shape their investment process and overall portfolio to suit their appetite. TABLE OF CONTENTS: What is Risk Vs Return? The definition of Investment… Continue reading
Understanding your circle of competence is important as it can help you make better investment decisions perhaps with an edge over other investors. A circle of competence is a mental model concept that aligns the investor’s skills, expertise, curiosity, and passion. TABLE OF CONTENTS: What is a circle of competence? All investors have heard of… Continue reading
