Envelope / Develope

Photo by HH E on Unsplash Today, 16th of March 2020, I saw again a stock market in free fall - almost 12% down. Friday, 13th of March, the whole market was up because of the fiscal stimulus released by US government. The funny thing is that I just finished a discussion with a friend who is telling me she is waiting for the signal to get back in the market. I almost laughed, because there is no signal, the market is on uncharted territory and inevitably that is not a strategy for investments, maybe for daily traders, but I would not do that in the current market. Yes, we are in the COVID-19 craziness, self isolated and looking to Italy with increased anxiety. It is not their fault (Italians, Koreans), dear readers. It is the laissez-faire of an entire political class, an entire generation in power which cannot comprehend simple mathematical models and technical prognosis about the possible quick exits for mankind. We can blame the bat-eaters in China, or the travelers ...

Photo by Michael Longmire on Unsplash This post is a convergence of my thoughts after re-reading a few books I always recommended for novice investors: The little book of common sense investing by John Bogle Where are the customer's yachts by Fred Schwed Thieves of Bay Street by Bruce Livesey (for Canadian investors) The Four pillars of investing by Michael Bernstein and also the continuous reading of web sites posting ideas and analysis for the investing community: Seeking Alpha Morningstar Bogleheads Investing  I am writing because I have friends who don't have the time/inclination and maybe curiosity to look a little bit deeper than the Yahoo financial articles and Motley Fool articles about investing (where people are goaded to consider different companies just because arguments are presented with catchy pseudo-reasons). They are at an age where planning for retirement should be a priority but, for some reason, the basic education of how to do ...

Why the same financial analysis ends with yes instead of no, a few years later I am following the investment community by reading all the common sites - Seeking Alpha, Morningstar, Fast Graphs, etc..- and have the conviction there are gems left in the stock market and just a few people are acting on them. I keep also the view that there are business people totally unqualified for their position and pushed by market events to lead something beyond their understanding and comprehension. Those statements are coming from working in many start-ups which were acquired or imploded spectacularly and the investment community did not have a clue of real motives. The financial statements released every quarter forces a short (maybe medium) strategy in the life of a public company. In my MBA years I was so amused by all the case studies providing hints of the health of the company based only on those numbers. It helps to know the industry, to know the players and the direction it goes but mo...