Category: Basic of Investing: Seeing Right

The reason why we make basic investing articles is due to our decision-making bias.

Our decision-making weighed heavily on the first impression. Attractive politicians often win the election. Surprisingly, even we are far away from the evolutionary phase, we still fall into the physiognomist. We believe that person’s character is reflected in his face: Henry Cavill for Man of Steel and RDJ for Tony Stark.

Problem is, our first impression about anything is often wrong – including investing. When we see a girl with sexy cleavage, we assume that she is flirting. When we read the term “fundamental analysis”, we simply think about financial series. When we read margin of safety, we assume it is about buying undervalued stock. When we see dividend investing, we say that it is about investing in stock with a high dividend yield.

Actually, they aren’t.

From our first years of investing till today, almost no investment resources cover and fix these kinds of misconceptions. We believe such misunderstanding will prevent investors from the optimal outcomes.

This circumstance is like looking at an object through the dirty – old – blurred glass. You can’t make the best decision before you set the glass clean.

Article in this category provides a cleaning kit. We scroll to the bottom of investing building block, finding the misconceptions, and present the right ideas for the reader. We try to change your first impression about some of investing concepts. Once you get the proper insight, you are one step closer to the valuation.

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Stock Market Bubble: Happy New Year, Genius

source: Photo by mentatdgt from Pexels

The stock market bubble unsurprisingly appears in 2020. Thanks to COVID-19 pandemics. Quoting Bloomberg Businessweek 23rd November 2020 edition, “This Market is for Noobs. Professional money managers aren’t beating the market1, The novice trader next door might be”. With smartphones in their hand, everyone is a stock market genius right now.

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  1. Actually, ever they? [↩]
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Berkshire Hathaway Analysis: Be a Full-time Investor.

When Look Warren Buffet via Berkshire Hathaway, we see one of most important factor of investing success
Berkshire Hathaway has something that you may not notice.
Photo by the framestreet from Pexels

Berkshire Hathaway analysis: What do you think about Warren Buffett investing style in practice? If Warren Buffett holds Costco and needs to buy Phillip66, first, he has to sell his Costco shares. Don’t you think so? Warren Buffett gives so much advice about investing. Unfortunately, there is a thing that he does not tell us.

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