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Wealth Building Strategies

Hope

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Posted by Richard Russell - Dow Theory Letterss

on Thursday, 11 February 2016 08:27

UnknownHOPE: It's human nature to be optimistic. It's human nature to hope. Furthermore, hope is a component of a healthy state of mind. Hope is the opposite of negativity. Negativity in life can lead to anger, disappointment and depression. After all, if the world is a negative place, what's the point of living in it? To be negative is to be anti-life.

Ironically, it doesn't work that way in the stock market. In the stock market hope is a hindrence, not a help. Once you take a position in a stock, you obviously want that stock to advance. But if the stock that you bought is a real value, and you bought it right -- you should be content to sit with that stock in the knowledge that over time its value will out without your help, without your hoping.

So in the case of this stock, you have value on your side -- and all you need is patience. In the end, your patience will pay off with a higher price for your stock. Hope shouldn't play any part in this process. You don't need hope, because you bought the stock when it was a great value, and you bought it at the right time.

Any time you find yourself hoping in this business, the odds are that you are on the wrong path -- or that you did something stupid that should be corrected.

Unfortuneately hope is a money-loser in the investment business. This is counter-intuitive but true. Hope will keep you riding a stock that is headed down. Hope will keep you from taking a small loss and instead, allowing that small loss to develop into a large loss.

In the stock market hope get in the way of reality, hope gets in the way of common sense. One of the first rules in investing is "Don't take the big loss." In order to do that, you've got to be willing to take a small loss.

If the stock market turns bearish, and you're staying put with your whole position. and you're HOPING that what you see is not really happening – then welcome to poverty city. In this situation, all your hoping isn't going to save you or make you a penny. In fact, in this situation hoping is the devil that bids you to sit -- while your portfolio of stocks goes down the drain.

In the investing business my suggestion is that you avoid hope. Forget the siren, hope -- instead embrace cold, clear reality.



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Wealth Building Strategies

How to Win the Loser's Game - Part 6

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Posted by Sensible Investing TV

on Tuesday, 09 February 2016 16:18

So, how can ordinary investors apply the academic evidence - the lessons learned from more than a hundred years of rigorous research? How can they apply that to achieving their financial goals?

Well, this might sound dramatic, but the work of Louis Bachelier, and of Nobel Prize-winners like Samuelson, Sharpe and Fama, should make us question almost everything we thought we knew about investing; and almost everything the financial industry and the media tell us we should be doing. Let’s watch….

“If you are serious about investing and building wealth the video documentary series ‘How To Win The Losers Game” is a must see. It’s excellent. 

After watching the video if you want to learn more about better low-cost, long-term, low-maintenance, diversified investment strategies, download our free guide “12 Essential Ideas For Building Wealth” by clicking on the banner at the top of this page.

Paul Philip, Financial Wealth Builders Securities

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Wealth Building Strategies

Can We Expect Lower Returns In The Future?

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Posted by Paul Philip

on Friday, 22 January 2016 10:27

buffett futureIf you have invested for any length of time, you will have heard the expression "Past results are not an indication of future performance." The best in our industry not only agree with that but some feel that in the coming years we should prepare ourselves for lower returns than we are used to. If the markets are indeed prepared to not be as generous, then keeping fees as low as possible has never been more important. We need to keep as much of the overall return as possible... CLICK HERE to watch the video

The Evidence-Based Investor Video series is a service provided by Paul Philip and the team at Financial Wealth Builders Securities



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Wealth Building Strategies

Use Accelerators to Achieve Your Goals FAST!

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Posted by Eamonn Percy - The Percy Group

on Friday, 22 January 2016 06:58

c2794b04-7787-4f0d-a027-f25ce7d5ce49
 
“When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.” Henry Ford

George Bernard Shaw once said that “Youth is wasted on the young!” It’s true: not because the youth don’t necessarily appreciate the abundance they have, but because they don’t appreciate the time they have remaining to create more abundance. We all like to think that we have an ample amount of time to accomplish everything we wish in our lives. The reality is quite different. We often underestimate the amount of time, and effort, involved in truly accomplishing great goals, since we likely haven’t done it before. We don’t really appreciate the time we have and many of us waste what little time we do have in the pursuit of meaningless pastimes, trivia, time wasters and low value activities.

Later in life, our responsibilities and opportunities seem to increase in direct proportion to the decrease in available time. Renowned Canadian Entrepreneur and Philanthropist Joe Segal refers to this declining balance as ‘the runway of life’. Our lifespan is finite, and just like a runway, it will come to an end. There is no extension, or extra time, or second life to live. This is truly it!

Consequently, it’s important to be wise with the limited time you have and avoid time consuming people and activities. This will make an enormous difference in your life and immediately free you up to achieve greater productivity and focus throughout our day. While this alone won’t give you sufficient time to accomplish your most important goals, time wasters should be ruthlessly eliminated from every possible aspect of your life.

I believe the best way to generate more time is to use accelerators. Back to the runway of life analogy – while a jet fighter cannot increase the length of a runway, it can use afterburners to massively accelerate and take off in half the distance. Just like a jet, we too can use accelerators to massively increase our capacity and achieve more results in a shorter period of time.

Quality education is a form of accelerator. Whether at a top high school, university, night school or even the school of hard knocks, we can massively increase our capacity in a very short period of time and learn skills from those that have gone before us.

What are other accelerators can you use? Try these:



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Wealth Building Strategies

Sage investment advice from Mike Tyson

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Posted by SuperAdmin

on Tuesday, 19 January 2016 07:32

tyson-money[Editor’s note: This letter was penned by Tim Price, London-based wealth manager and editor of Price Value International.]

In a crisis, it helps to have good counsel. Consider the following sage advice from investment strategist Mike Tyson:

“Everyone has a plan ‘til they get punched in the mouth.”

Or as German military strategist Helmuth von Moltke the Elder put it, somewhat more formally:

“No battle plan ever survives contact with the enemy.”

The enemy has been quick to show himself this year, in the form of a bear market, at least for stocks.

This bear has so far been quick, and indiscriminate: the US; Europe; China; stock markets have fallen sharply, internationally.

Investors, being human, have scrambled in search of an explanatory narrative.



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