7 STOCK MARKET INVESTING RULES + MY PORTFOLIOS

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There are some things to important when it comes to investing, and especially investing in the stock market that I cannot stress the importance enough. The 7 investing rules are related to how to approach investing in stocks and other assets.
Unfortunately most people lose money when investing so it is important no to do so. The stock market can crash and stay down for 20 years.
The key is that investing is a positive sum game in the long term and in that light I also share my portfolio with you.

20 COMMENTS

  1. I'm surprised you are not looking at cash more skeptically knowing that the debt cycle is coming to a head. I was just a baby in the 80s, but from what I understand inflation will take your cash for a ride before you can take advantage of interest rates that will rise to meet it. For myself, I cant believe how many people dont seem to care for or want physical gold right now. I work in the mining industry for one of the companies you've profiled and I know how expensive, risky and uncertain a venture it is to pull the yellow metal out of the ground. To skip owning the risk of stock and buy the gold as as subsitute for cash seems like a bargain to me at this point. Its more viscous than cash but you get to hedge while serving the same function.

  2. hi from Brazil Sven, learning a lot with you. please keep posting! Question: I have only one house for leaving with my family, no morgage/debt. If I consider my house as an asset class in my portfolio I land in 86% Real State, 9% Bonds, 4% Stocks, 2% Cash. If not consider my house then 60% Bonds, 29% Stocks, 11% Cash. Which way do I need to see my portfolio?

    * Bonds in Brazil are not negligible – we have `Inflation + 4.6% yield` for 8 years treasure bonds and some liquidit to sell.

  3. Have a thought: there are stock markets ups and downs – but for high ROCE emerging businesses with extreme growth at decent valuations should we really go by general market ups and downs. But if we do not get into these individual gems at the right time, they grow too big later. The idea is to catch them when they are not too big. So what is the objective of tracking general market ups and downs – Keep lots of free cash for a good general dip. Should we depend on general Sp 500 valuation or valuation of individual stocks? Though, now – its difficult to find stocks which are at decent valuations.

  4. Do you remember in 2008 and 2009 the media was scaring everyone about the “debt ceiling” and the “fiscal cliff”? I think that’s one reason people were afraid to buy stocks when they should have been buying them.

  5. I started investing way too quick at around June 2017 in brk and made a fairly big profit, but after thinking about it I think I'm going to trim to the point where I'd be if I dollar cost averaged into brk from day one. I'm going to write off my abnornamlly high gains from investing all at once as gamblers luck and just dollar cost average from here on out.

  6. thank you so much! i need to be patient! how will i really know when the market has crashed and won't go down even further? your channel is awesome.

  7. Most everyone I know who has a chunk of wealth relative to others in our age and income level have one thing in common… real estate, the true way to make wealth. And I have about 50% in real estate, income generating real estate that you own is truly awesome. Especially when the renter always pays you and you have a long term contract. I love the wind blowing here is lovely southern California. More wind more money

  8. Worth noting that valuations by themselves may not be the best market timing tool. Markets can always get more overvalued and vice Versa to zero at least.

  9. Very good info thanks, I wonder if increasement in housing prices have something to do with rising costs in environmental certificates such as expensive materials to insulate homes etc.. easy lending by banks controlled by governements (behind the curtin) It seems to me that the governement has found a new piggy bank in real estate… building houses creates lots of jobs and income for government and not to mention the transfer and all property taxes… in some countries 1/2 of the value of a new property development goes to the pocket of the governement, but you can lend more and longer time (30y) at very low interest… Bubble ?

  10. I started off with a brokerage account in 2012, then didn't do a lot between 2014 and 2017, then came back in late 2017 and only then realized that stocks had gone up 50-100 % without me having been invested anywhere. Then I lost a lot of money around the end of the year, and now I've decided to commit to a dividend strategy so I don't have to worry about the ups and downs any more.
    What I care about now are solid companies, great brands, acceptable payout ratio, dividend growth, growing earnings and cash flow. I want to aim at an average 5% dividend yield 5 years from now, build up savings year after year, and maybe 15 years from now, a yield of 5-10 % will be okay for my wife and myself to work less / save less while the dividend yield goes up.
    If stocks go down, it's a bargain, if stocks go up, that's a sign that the company is doing well (of course I have to check if predictions come true).
    I admit to making a lot of mistakes, but now I've realized that I don't need a tenbagger to be happy and I can reach my goals with relatively little risk in my opinion.

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