Some IPO’s go on to be multibaggers, like for example Facebook, Amazon, and Netflix, to name the most successful, but this article provides you with 9 reasons not to buy an IPO. For every IPO success, there are many more failures that tend to be forgotten. The losers mainly don’t catch any interest from the…
Mechanical Trading Strategies Vs. Discretionary Trading Strategies When it comes to trading, you are either using mechanical trading strategies or trading at your discretion. What is the difference, and which is better? Let’s find out. Mechanical trading strategies refer to automated trading using trading algorithms with pre-set instructions. The primary purpose is to remove as…
Chart pattern recognition is one of the most popular techniques employed by chartists and technical traders; they constantly study and analyze price movements in hopes of detecting patterns that show the next most probable price movement. While there are many different types of chart formations out there, the cup and handle pattern strategy is one…
Some investors and analysts turn to technical analysis and chart patterns to analyze price movements and determine the right time to place their trade orders, and one of the most common chart patterns they focus on is the head and shoulders pattern. Let’s take a look at this chart pattern. The head and shoulders pattern…
There are many tools investors use to measure investors’ sentiment in the stock market, but the advance/decline indicator is one of the simplest ones. But what does the advance-decline indicator mean? Often referred to as the advance/decline index or advance/decline (AD) line, the advance-decline indicator is a market breadth indicator that plots the cumulative difference…
As a trader or investor, it is necessary to understand the mood of the market at every point in time, and market sentiment can be a powerful tool for that. But what is market sentiment and how do you measure it? Also known as investor attention or crowd psychology, market sentiment refers to the prevailing…
180 Years of Stock Market Drawdowns In a presentation to the Institut des Hautes Études Scientifiques (IHÉS), termed An Analysis of 180 Years of Market Drawdowns, which is available on YouTube, Dr. Robert J. Frey, a former hedge fund manager and quant trader (whose firm was actually bought out in the 90s by the legendary…
Warren Buffett recommends most investors invest in passive index funds. In general, investors should not be active investors. Why? Buffett recommends passive and low-cost index funds because he believes this is the most rational way to invest for most people. There are so many forms of mistakes ordinary investors can make, but passive index investing…
Bitcoin has appreciated a lot over the last years, and polarized discussions on social media continue endlessly about which asset will perform the best in the future. Many swear to bitcoin and cryptos, while others swear to the more traditional assets like stocks, real estate, and gold. This article looks at productive vs unproductive assets….
Warren Buffett’s investment track record is second to none. Not only has he managed to invest successfully, but his patience has made him compound decade after decade. We can argue Buffet’s skill is investing, but his hidden gem is his patience. 95% of his wealth came after his 65th birthday! A big part of his…
Alphonse Fletcher Jr. is an African-American former hedge fund manager and founder of the Fletcher Foundation. The 50 best trading quotes Alphonse Fletcher Jr’s early life and trading career He was born on the 19th of December, 1965 and was raised in Waterford, Connecticut. Fletcher is the oldest among three sons. His father came to…
Since the early 1980s inflation has been falling, at least according to official numbers. As a result, the interest rates have dropped significantly, even to nominal negative rates in some countries. Because of this, a whole generation of investors have never invested in an environment with rising inflation and don’t know how to protect their…
A recent study about Norwegian traders and investors sheds some light on the returns (or lack of) based on diversification, age, wealth, and risk appetite. It turns out that wealth and age are a major contributor to returns, perhaps not surprisingly: The tilts of investor portfolios toward the new factors are driven by wealth, indebtedness,…
Hormel Foods (ticker HRL) has an outstanding long-term track record, yet it’s not a widely known company. What does Hormel do and is it likely to be a good investment in the coming years? Hormel’s business: Hormel is an old company and was founded in 1891. According to the CEO, Hormel is a protein company,…
Charlie and I don’t know our cost of capital. It’s taught in business schools, but we’re skeptical. We just look to do the most intelligent thing we can with the capital that we have. We measure everything against our alternatives. I’ve never seen a cost of capital calculation that made sense to me. Have you…
What happens to dividends in a bear market? How do dividend stocks perform in a bear market? How does bear market dividend growth investing perform? Dividend investing has become increasingly popular over the last decade. One of the main reasons is the belief that investors don’t need to worry about sequence risk and a bear…
Everyone understands that you need to own stocks over many years to make money. How long do you need to hold a broad portfolio of stocks before selling with a profit? How likely is it that you make a positive return over x years? If the S&P 500 is any guide, you need at least…
By investing passively you outperform most of the professional fund management industry. But how can you invest passively and beat the index? In Sweden, the Spiltan Aktiefond Investmentbolag has managed to beat the Swedish Total Return Index (SIXPRE) in eight of the nine years since its start in 2012 despite being managed more or less…
Do Spinoffs outperform the market? Is a spinoff a good or bad investment? Evidence points out that spinoffs have historically been good investments, for both the company being spun off and the parent company. This article explains what a spinoff is, why a spinoff outperforms, why a spinoff is good, and why a company would…
What is the Holy Grail of investing? The Holy Grail is often used to describe a method to achieve eternal success or happiness, depending on what you are trying to achieve. In investing, The Holy Grail is the lure of high and consistent returns. This article explains some essential advice on how you can go…
Otis is the world’s biggest elevator company. It manufactures and installs elevators, escalators and moving walkways. The name origins from the founder, Elisha Otis, who in 1852 invented a safety valve to stop the elevator should the cables fail. At the time, many were reluctant to use elevators or other hoisting mechanisms because of frequent…
Are there any good Swiss dividend stocks? Yes, there are quite a few. In this article, we look at the best Swiss dividend stocks. Despite its small size, Switzerland is home to many great businesses. The easiest way to get exposure to the Swiss market is, of course, to buy an ETF or a mutual…
Berkshire Hathaway is big, mature, and its chairman is old (92 years). This leads many investors to look for companies that are similar to Berkshire but might offer a much longer runway. This article was initially written in 2019. Invest like Warren Buffett: This article lists 15 high-quality business models which we label Mini/Baby Berkshires…
Constellation Software’s CEO Mark Leonard is a bit of an eccentric character and CEO. Under his reign, the company has compounded at about 40% for almost two decades! We have been avid readers of his annual shareholder letter for years, but unfortunately, he has chosen only to write when he has something “important to write”….
This very brief article looks at Olvi – a Finnish brewer and distiller. We expect a 7-10% return over the next decade. Olvi will not set the world on fire, but a lot must go wrong for this to be a poor investment. Olvi is a beverage and distiller company based in Finland, founded in…
The Nordic region is small, with only 28 million people, but nearly all the main investment possibilities are represented. The Nordic Juggernaut is Nasdaq Stockholm, which has the most companies listed and is the biggest in market capitalization. However, the most prominent company is Danish: the insulin giant Novo Nordisk with a market cap of…
Many investors are obsessed with identifying future multibaggers. How can you find multibagger stocks? Unfortunately, it’s not easy. In this article, we look at a specific research report that addresses how to find multibaggers. The main takeaways from the report are that the Nordic region is a great place to invest, don’t be too obsessed…
Is it possible to get rich by investing in stocks? If so, how do you get rich investing in stocks? It’s possible, of course, to get rich from stocks, given certain assumptions. However, being patient is mainly how to get rich in the stock market. This article gives you some advice on how to go…
Recently the short squeeze in Gamestop and some other stocks have attracted a lot of media attention. Of course, the action in Gamestop is sheer speculation and most likely a short attack on stocks with limited float and high short interest. This is expected to continue for some weeks, and some hedge funds are likely…
We believe the Nordic region is a good place to invest. It’s safe and it scores well on ease of doing business, despite its reputation for being “socialistic”. We remind you about the reasons why we believe it’s a good place to invest: 7 reasons to invest in the Nordic stock markets Finland is most…
An investment checklist is handy no matter your time horizon or investment style. The bare minimum is a mental checklist, but preferably it should be a written one. Just like the aviation industry developed checklists to avoid disasters, investing is very much about error removals. This article provides an investment checklist example and argues why…
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The dividend has always been an important component of the investment culture in the UK. Because of this, we provide you with a compilation of what we consider the best UK dividend stocks. Most British companies pay the dividends semi-annually, but a few pay quarterly dividends. We give you the list of the UK quarterly…
Are there any good French dividend stocks? Yes, there are quite a few. In this article, we look at the best French dividend stocks. France has many high-quality companies: Who have not heard of L’Oreal, LVMH, Schneider, or Sanofi? Both the CAC-40 and the CAC Mid-60 contain many high-quality companies that pay a stable or…
The Danish stock market is pretty fragmented and is not dominated by just a few sectors, like for example the Norwegian stock market. Denmark has a few solid dividend payers, Novo-Nordisk and Carlsberg probably being the best knowns. However, the list below, which is a work in progress, has other interesting names. As we read…
