Pilot Flying J: Warren Buffett’s latest buy shows that you should invest in what you know

http://www.compoundyourfreedom.com/wp-content/uploads/2017/10/Pilot-Flying-J-Warren-Buffet.jpg100 Billion Dollars but nowhere to spend it. This has been one of Warren Buffett’s biggest problems in 2017. For us small investors, we are always scrambling to put as much capital as we can as soon as possible into the appropriate investment vehicles. Our problem is having to little cash relative to investment opportunities as opposed to the opposite scenario for Buffett.

However, on Continue reading

Rebalancing your investment portfolio – The Michael Jordan way

portfolio-rebalancing-jordanRebalancing investments is one of the most important steps in portfolio management for both individual and institutional investors. The main purpose of rebalancing is to ensure that your portfolio maintains the desired asset allocation, so that you can meet your goals while also preserving your wealth. With many methods for rebalancing available, here I will outline some and describe which one I think is best. Continue reading

Automation and the rise of the machines – are you ready

automation-investingToday we can see rapid developments in automation coming seemingly from every direction. From self driving cars, package delivery by drones, self service supermarket checkouts to robo-advisors in the financial industry. To take advantage of this and make massive cost savings, companies will strive to utilise the new technology, sometimes sadly at the cost of human job roles. Continue reading

Why you should invest only for the long term

long-term-investingIt is often recommended by financial advisors that people should only consider investing in stocks and shares if they intend to not need the money within the next five years. The main reason for this is that the stock market can be very volatile in the short term. For example, the United States’ S&P 500 index lost nearly 40% of its value in 2008. This would not have been a good outcome for an investor wanting to utilise investments in this fund shortly after the drop. However, there are other benefits of adopting a long term approach to investing, which are often overlooked or which are not widely taken seriously. Continue reading