Showing posts with label Stock Investment Strategies. Show all posts
Showing posts with label Stock Investment Strategies. Show all posts

Wednesday, July 10, 2019

How Warren Buffett Become Wealthy and Successful

Many value investors out there probably know who Warren E. Buffett is. If you don’t know him yet, let me give a short summary about him. Warren Buffett is an American successful investor, business man as well as a benevolent philanthropist. He was born in August 30, 1930, and apparently he is still alive as this article is written in the year of 2019. He is considered as one of the most successful investor in the world that inspired many people. Many value investors try to understand how he invests and replicate his strategy. I as a dividend growth and value investor am inspired by his success and teachings. Even though I had never met him in real life; however I became really inspired by him for his investment ideology and respect him for his benevolent philanthropist act to the society. As this article written today (June 30, 2019), Warren E. Buffett has an estimated net worth of $87.5 billion USD making him the third richest person right before Bill Gates and Jeff Bezos. Having him to be one of the richest people in the world is not the reason why I idolized him so much. Warren Buffett is not the typical rich person that spent his money on materialistic things such as fancy cars, huge mansion, or lavish yachts. He lives just like the typical average American who purchases his breakfast at McDonald every day before going to work. In addition, he still lives at the same modest home he purchased back in 1958 for $31,500 or about $250,000 if adjusted with inflation. Like I said, he is not the typical rich people who want to have lavish things and life style but he is just a humble person that loves to build his business empire that will eventually go back to society. He pledged more than 99% of his wealth will go to philanthropy during his life or at death and he couldn’t be happier with that decision. I’m so amazed of his generosity since he has dedicated his life building his wealth without much inheritance from his parents. He didn’t come from a wealthy family but an average middle class family and through hard work and dedication; he has built the fortune he has today. I love building wealth and doing business just like Warren Buffett and believe that wealthy people who is in the 1% wealth list should donate at least 50% of their wealth before or after their death. My dad similar to Warren Buffet who started from nothing, and he is considered to be wealthy today; however I don’t see his wealth as my success. I believe in building my own score card and fortune just like my dad and Mr. Buffett; and I would not be upset if my parents decide to give away their wealth to charity later on. I mean after all I believe that their wealth is theirs and I don’t want them to feel obligated. However, if my dad let my brother and me to inherit his business legacy, I would still continue to expand his wealth. It would be better for me and my brother to grow the wealth since my dad has already built the tree for us which gives tremendous head start. However, towards the future if I become really wealthy, I might pledge to give away up to 50% of my wealth to charity after my death. Anyways let’s not get distracted about me being philanthropy; I’m still far from being in the 1% list!  Let’s go back to topic of Warren Buffett. After understanding his stories of his success and the amount of wealth he accumulated, you readers might wonder how on earth he does it. I myself was curious on how Warren Buffett did it. After doing many bibliography studies and research about him, I learned how Warren Buffett became successful and wealthy therefore I’m here to share his stories with you guys.

Saturday, July 6, 2019

5 Reasons to Become a Dividend Growth Investor

The America stock market has been one of the greatest long-term wealth generators in history. It has a record of compound annual growth rate of 9% since the late 1990s. Even after Great Depression of 1929 and other stock recessions and stock collapses, the U.S. stock market has always performed well for investor in the long run. Many people have different strategies towards their investment. Some like to speculate stock in short term period such as day trading, some prefer to let the experts do their job such as fund managers to manage their money in a form of mutual fund. However, an average person can learn how to invest safely. Dividend growth investing is a good strategy if you want invests on your own. Here are five reasons why you should become a Dividend Growth Investor.

Sunday, June 23, 2019

Difference Between Investment and Speculation

There are many people who purchase stocks thinking they are making an investment and not knowing they are actually speculating. They buy certain stocks with just certain assumption that the stock will go up in price without doing a thorough analysis. And yes, some people actually do make capital gain from speculating and sometimes they made a lot of money. That is what we call speculating. The person who made tons of money from speculating on certain securities might just be lucky. However people need to know the difference because Investing and Speculating. Those two are totally different terms. Benjamin Graham who is Warren Buffett’s mentor believed in separating investing from speculation. I strongly agree with that ideology because not knowing the difference can cost you dearly. In this article, I want to talk about the difference between Investing and Speculating, and why I personally dislike speculating and prefer Investing instead.

Thursday, June 20, 2019

How to Make Money Using Dividend Growth Investing Strategy

Before I start explaining about “Dividend Growth Investing”, we need to understand the basic of dividends. A dividend is a distribution of income from a portion of company’s earning (net profit) and it’s paid to its shareholders. Dividends are decided and managed by the company’s board of directors, and they must be approved by the shareholders by voting rights. Dividend Growth Investing is a simple strategy of purchasing stocks that are paying dividends and have been growing their dividends from the past year. A Dividend Growth Investor also can benefit from the capital appreciation from the dividend paying stock. The goal is to look for dividend paying companies that have strong track record of paying dividends. In addition, the companies need to have strong financial fundamental as well as the quality of the company. The strategy to Dividend Growth Investing is to seek for companies that increase their dividend payment overtime. So how do you make money using dividend growth investing strategy?

Thursday, June 9, 2016

Turning Bear Market Into 'Buying Opportunities'

A Bear market is a market condition in which the prices of securities are falling due to widespread pessimism that causes the negative sentiment. During this time, many speculators and investors rush to sell their positions worrying that they will lose their portfolio value. Since there are more seller than buyer in the market, the pessimism only grows stronger which will eventually lead to a huge stock decline. Many people were told to stay out of the market during this time or maybe to sell all their positions in certain companies (I did this before and I regret it till now). However, you may be surprise to find out that you don’t need upward trend market to make money in the stock market. As for me who is a dividend growth and value investor, I tend to see things with long time horizons and see the bear market condition differently than most investors out there. You will see many great quality dividend growth companies trading at cheaper price. As a value investor, I tend to focus more on the quality of the business rather than the short-term or near-future share price. You shouldn’t be scared that the stock price has decline tremendously, in fact you should embrace it. I focus more on the quality of the business rather than the short-term or near-future share price. And knowing the quality of business, I use the bear market condition as an opportunity to purchase great companies. So what’s the reason behind it!