Being a full-time private investor is no easy feat, and one of the hardest parts is being consistent like clockwork. Many people envision private investing as glamorous, but there are numerous challenges that come with being a full-time money manager. Like many other investors who have chosen this path, I face a variety of obstacles… Continue reading
There’s a lot of information about buying a stock, how to value it, along with countless best-buy lists. However, the actual execution of a buy order is often overlooked, even though it’s a crucial step in the investment process. Many investors spot a potential opportunity and dive in, but the results can be hit or… Continue reading
It’s amazing how much time is spent arguing about which investment strategies or styles are better in the investing universe. Like many of you, I’ve heard the long debates about value investing being better than growth, or small-caps being higher risk and therefore not better than large caps. Even long-only strategies are considered the only… Continue reading
Half the battle is just showing up… Sounds like a motivational speech… Showing up will lead to success. Just turn up at the office or the gym, and the rest will fall into place. Well, not necessarily – there is still work to be done, but showing up is the first step. 🪝 Investors need… Continue reading
Investment monitoring is an ongoing process of evaluating the fundamentals of underlying businesses and the performance of your investment portfolio. A disciplined approach to portfolio monitoring is essential. It’s not just about logging into your brokerage account and checking stock prices. It’s about knowing what you own. TABLE OF CONTENTS: What is Portfolio Monitoring? Portfolio… Continue reading
Portfolio rebalancing is the process of ensuring the portfolio weightings remain consistent with the asset allocation strategy in your investment plan. Assets/positions can become overweight or underweight based on the movements of the markets. The purpose of rebalancing is to ensure you manage risk in correlation with returns and your overall investment objective. Periodically you… Continue reading
As an investor, it’s important to know when to sell a stock. While there’s plenty of information on buying stocks and investing strategies, there’s not as much coverage on when to sell a stock. Selling a stock is just as important as buying one, yet many investors don’t have a sell strategy in place. TABLE… Continue reading
The Dividend Discount Model (DDM) is a valuation method that uses Dividends instead of Free Cash Flow to calculate Intrinsic Value. The Intrinsic value of a stock is the sum of all the expected future dividends, discounted back to a present value. Table of Contents: The Dividend Discount Model explained. The Dividend Discount Model (DDM)… Continue reading
Multiples Valuation Analysis is a relative valuation method using financial ratios such as the P/E ratio or the EV/EBITDA ratio. This approach values a company based on specific operating metrics, such as earnings or cash flow. It is also referred to as the market-based approach, as it suggests that similar companies should have comparable valuations… Continue reading
The Reverse DCF Model is an excellent tool for valuing a stock based on the market’s pricing rather than your own forecast. This model uses the Inversion concept which is a modified version of the Discounted Cash Flow model. By beginning with the current stock price and adjusting the expected growth of the business, we… Continue reading
