The Buffett Indicator and more

One question investors often ask themselves is how do you tell whether the stock market is overvalued? Are prices too high, should we wait for the market to go down or is now actually a good time to get in? And it is an important question to ask because let’s be honest, no one likes putting their money in the stock market and then seeing prices go down.

Fortunately, there are a number of indicators that we can look at in order to determine if the market is overvalued or at the very least to get a good feel for…


Seven simple key rules to follow when investing in the stock market

Buffett’s historically highest returns were achieved in the early part of his career, with his own personal firm named Buffett Partnership Ltd. The company lived from 1957 to 1969, and during its lifetime the famous investor managed to reach a whopping 29.5% average return year on year with his investments in the stock market. But since he uses a very simple technique called “Value Investing”, pretty much anyone with basics finance of knowledge and equity markets could do the same. As he once put it:

“You don’t need to be a rocket scientist. Investing is not a game where the…


Signs of a business that’s going to fail and how to find out early

The greatest nightmare for any investor is to put your hard earned savings into the shares of a company only to later see it go bust. You buy some stock, then the price goes lower, you buy more and then it eventually goes to zero when the company declares bankruptcy.

But how do you avoid picking this type of companies, how do you make sure to avoid them?

Here are a few warning signs that you should pay attention to when stock picking. Plus, tips on how to be a more rational investor.

Red flags to look out for

Here are a few key things to…


Safety measures to protect your portfolio in different scenarios

It’s very easy to look back at past mistakes and regret making -or not making- a certain investment. It’s even easier to tell yourself those mistakes weren’t actually losses, but rather “investing experience”, trying to somehow justify them to yourself.

But what will really protect your investment returns in the long run is understanding in advance the risks you might inadvertently take, something that will also help you grow as an investor.

Here are four financial risks you should always take into account when deciding where to invest your money.

Foto di Gladson Xavier da Pexels

Interest Rate Risk

When referring to the interest rate that impacts the stock…


What will happen to BRK stock after his departure

Warren Buffett is one of the greatest investors of all time, perhaps the best. He invented the concept of Value investing, founded Berkshire Hathaway and managed to achieve a 20% annual return with it, making him one of the richest people on the planet.

But given that Buffett is now 91 years old and started Berkshire over 50 years ago, we could reasonably assume he’ll retire over the next few years. And although I don’t think anyone is looking forward to that day, this begs the question: when he’ll finally retire, what will happen to Berkshire? …


For when YouTube and Reddit are not enough

The stock market is one of the greatest ways to accumulate wealth over the long term. But, in order to invest correctly, you need to have access to the right set of accurate, up to date and in depth information when doing your research.

So, since we live in an era where everyone seems to have a different opinion on stocks and personal finance, here are five great websites that’ll help you shape your own view on the market.

Man researching stocks on an iPhone while driving his BMW
Man researching stocks on an iPhone while driving his BMW
Photo from D’Vaughn Bell / Pexels

#1: Investing.com

Investing.com is a one-stop-shop for everything stock market, and it’s exactly the reason why I like it so much. On the…


$10, 100 or 1000 for each investment? Tips to decide correctly

If you’re investing in the stock market, or are interested in doing so, you’ve probably asked yourself these questions at least once: how do I determine how much money to put in every single stock? What is the minimum to invest for each stock? Ten, a hundred or a thousand dollars?

The question is relevant today more than ever, as fractional shares allow investors to buy regardless of the price, taking down the barrier that required to ‘spend’ at least the price of one share.

Man counting dollar bills with his hands
Man counting dollar bills with his hands
Photo from Karolina Grabowska — Pexels

The following rules are very personal, and will change depending on your personal situation. In…


Plus a far better index for picking stocks

When deciding which stocks to buy, there’s an index that people always seem to focus on, perhaps even a little too much. It’s the dividend yield, the estimate of the dividend-only return of a stock by definition, used from investors to determine their yearly payout.

But there are two problems with this index: the first one is the fact that a company can reward investors in other ways, such as with stock buybacks, and the second one is the fact that companies can also raise new equity to finance new projects, therefore diluting their existing stock position. …


And why this dissonance is less strange than you think

For those who have been keeping track of the economy and are investing in the stock market, I’m sure you might have noticed something very weird happening throughout this year. On one hand, you look at the stock market and think we’re probably in the most productive stage possible, with the markets going up more than 50% over the last eight months. But on the other hand, 2020 is also the year of the highest unemployment ever seen.

Photo by Edwin Hooper on Unsplash

It’s very weird times that we’re in: one would expect stock markets to be as low as the economy, while in reality…


A little reminder of what it really is and why it matters in 2020.

Photo by Ashkan Forouzani on Unsplash

Two “holidays” are set to happen back-to-back during this week: Thanksgiving and Black Friday. According to the dominant American narrative, this period is supposed to be about family time, giving things and sharing love. But for many people these aren’t really Holidays, especially if you work in the service industry at places like Amazon. Take their Warehouses for example, where during this period mandatory overtime pits workers against the clock, forcing them to stay on their feet 12 to 16 hours a day. …

Thomas H.

Business student from Europe. I like to talk about finance, the economy, and sometimes the environment.

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