Most financial/wealth advisors preach diversification above all else. Spread your bets, the thinking goes, and you protect yourself from downside risk in any single position. Peter Seilern argues the opposite in his 2024 book "Only the Best Will Do." Seilern makes the case that concentrated portfolios of 20-30...
After screening, analyzing, and valuing a business, you may arrive at the decision to buy the stock. The question then becomes: how much of your portfolio should you allocate to this position? This is what Joe Ponzio addresses in his book "F Wall Street" (2010). His answer is...
Warren Buffett built his fortune by identifying companies with strong economic moats and holding them for extended periods, sometimes 30+ years. But knowing when to sell has been equally important to his success, because even exceptional companies aren't permanent holdings. In "The New Buffettology" (2002), Mary Buffett (Warren's...
In his 1989 book "One Up On Wall Street," Peter Lynch argues that everyday investors can outperform Wall Street “experts” by leveraging their real-world observations and freedom from institutional constraints. This post covers why individual investors have advantages over professionals when investing in stocks, and shares Lynch's methods...
If you're researching and investing in individual stocks on the stock market, you should run a concentrated portfolio to outperform the overall market. This may be contrary to what's taught by most financial advisors, but the reality is that a handful of exceptional businesses drive the overwhelming majority...
This article will explore why most investors underperform the market, specifically the S&P 500 Index. Many investors, from novices to seasoned professionals, aspire to outpace this benchmark. However, only a handful consistently achieve this over the long term. We'll discuss the reasons behind this widespread underperformance and present...
This article will show you how to create a successful investment plan in 5 steps. All serious investors should develop an investment plan to meet their long-term investing goals prior to deploying significant amounts of capital in any investable market. Becoming a successful investor requires establishing an investment...
This article will discuss why stock prices fall after beating earnings (aka good earning announcements), which is a common question many new investors ask around earnings season. The short answer to this comes down to the future expectations of analysts and investors, along with supply and demand. These...
This article will cover the 12 main reasons on why a stock price may change. After reading through this article, you should be able to apply this information to make more informed investment decisions in the future. It can be uneasy for new investors when they purchase a...