This isn’t an isolated incident, and it’s not about stocks vs mutual funds. It’s a pattern I’ve observed repeatedly over two decades of writing about investments. The most analytically gifted individuals often struggle with investing, not because they lack intelligence, but because their very strengths become their greatest weaknesses when markets turn volatile. Consider the…
The FIRE movement can be a life-changer even for those who don’t plan to retire early. Rasheeda Creighton, of Richmond, Va., discovered FIRE—Financial Independence, Retire Early—at a time when she needed it: She was going through a divorce, had a toddler, and didn’t know how far her retirement savings would take her. At 40, she…
The first involves doing your homework (reading company reports, analysing mutual funds, keeping tabs on the economy) before deciding which stocks or funds to invest in. This may sound straightforward, but the reality is only a few are cut out for this kind of investing. For most, the second option is more realistic – outsourcing…
Warren Buffett famously said: “Be fearful when others are greedy, and greedy when others are fearful.” If you were bullish in September 2024, there is no reason to be bearish now just because of the correction. A correction was due any which way, as valuations were stretched. Whichever parameter you take for valuation—price-to-earnings ratio (PE),…
