Tag Archives : mental strength


Averaging Down On A Stock Requires Mental Strength And Conviction 


I have made it no secret that I like to buy shares when prices go down. Just like you would get excited for when those trainers you were admiring go on sale, I feel the same when it comes to shares in quality comes. When prices go down, I am able to buy more shares for the same amount of money. And more shares mean more dividend income. If prices go down further from the point at which I made my investment, I would be inclined to add to this position. Just look at my investment in Shire PLC. I first initiated a position at £44 a share. After my […]


Investors Are Fickle As Seen By Sages Share Price Volatility

The more I learn, understand and partake in the markets, the more I realise that many investors should not be investing in the stock market. Don’t get me wrong, I do believe that the stock market is the greatest wealth generating tool ever created but I just feel too many people don’t use it correctly. Most people treat the stock market like a casino as opposed to it allowing them the chance to buy ownership stakes in wonderful enterprises. Most don’t have the mental aptitude and calm persona to withstand short term volatility. They do the most wealth destructive thing by selling out low when a stock price moves downwards. […]


Saving Money Is Good For Your Psychological Wellbeing 1

Copious consumption. This seems to be the trend at the moment. Everywhere I look I see people spending money frivolously. Always updating to the latest version of a smartphone. Always wanting to stay in fashion by buying this seasons clothes. Always wanting a newer car. Always wanting to keep up with the Joneses. Now I am not against consumption. As long as you pay cash, I am fine with that. But that is not what is happening here. All this consumption is being driven by debt as opposed to money people actually have in their bank accounts. This is a worrying sign and it has has led to debt levels […]


My Strategy For The New Stocks and Shares ISA 4

When it comes to Investing and Saving, I cannot believe how lucky we are in the UK. We have an account that lets you invest and save money completely tax free. And unlike a pension, you can withdraw the money at any age you like. Yes, I am talking about the Investment and Saving Account (ISA). I do most of my investing these days using an ISA account. No capital gains tax to pay and no dividends tax to pay. Without these expenses I can let more of my money compound for longer. Every year, each individual can put a set amount into an ISA account. Over the past few […]


Fear Of Missing Out – Investors Worst Nightmare

One of the biggest detractors to investment performance is FOMO or Fear Of Missing Out syndrome. This is when you make an investment, whether it be stocks or any other asset, simply because you do not want to miss out on the possible gains it makes. You do not want to miss out on the gains therefore you buy something out of fear of missing out as opposed to being rational and looking at the numbers. Buying assets just because you fear missing out on the gains does sound stupid but it occurs more often than people like to admit. It happened in the dot-com bubble where people were investing […]


Investing Is More About Emotional Control Than Technical Skills 1

One question I keep getting asked is ‘what is the most important skill to have as an investor.’ Many people think the answer is something technical like great analytical or quantitative skills. But the answer is much more simple than that; in theory. The most important skill in my opinion is the ability to keep your emotions under control. The ability to keep your head in check when the world is going mad. The ability to think rationally. All the great investors, from Buffet to Templeton to Munger to Klarman understand this and that is why they are truly great. In down markets, they keep their cool by not selling […]


The 5 Models To Know If You Want General Worldly Wisdom – A list by Charlie Munger 1

Charlie Mungers philosophy on worldy wisdom is one of the best articles I have ever read. For anyone looking to be better than average, both in a stock picking sense and a wordly intellectual sense, I urge you to read the full article below. I would even go as far as bookmarking this page and having a re-read of the article every once in a while. It is that good. Below is a summary of the piece but do read it in its entirety to appreciate the full wisdom Charlie Munger imparts. Models to to learn for general worldy widsom: Mathematics – basic arithmetic and algebra, decision trees and the […]


Let Capitalism Set You Free – Move from Employee to Owner

There seems to be an ever increasing tide of bias against capitalism. People are increasingly becoming of the view that capitalism doesn’t work. But what they don’t realise is capitalism has allowed people on benefits today to have a better quality of life than the richest man on earth 100 years ago. Think about this for a second. When capitalism took over communism as the default world economic mechanism we saw an unprecedented amount of technological and productivity improvement. Without capitalism we probably wouldn’t have cars, planes, mobile phones, the internet, costa coffee or much else that we love. When people talk against capitalism, they don’t mention the benefits it […]


Pay yourself first even if you are living paycheque to paycheque – No excuses 2

The golden rule of personal finance is to pay yourself first. One of the biggest mistake people make is that they pay bills, rent, loans and other expenses first! The government also pays itself first with YOUR money even before you do. This is absolutely crazy. It is no secret that the rich play by a different set of rules. It is no coincidence that people who are wealthy are in that position – they have achieved and are able to maintain their wealth because they understand how money and personal finance works. They pay themselves first. Then they take care of the little things like bills, loan payments and […]


Want to live as good as any billionaire? Buy this one thing

Most of us would love to live like billionaires. Billionaires can buy anything they want without having to worry about the cost. They live lives many of us can only dream of. But I can teach you a way of spending 1/3rd of your as well as any billionaire does, and it needn’t cost you that much. If you want to live as good as a billionaire for one-third of your life, buy a comfy bed. We all have to sleep, weather we are MC Hammer broke or Bill Gates rich. You see, most people who sleep the recommended 8 hours a day will spend 1/3rd of their life sleeping. […]