Jungle Bulletin: Emotional Investors, Warren Buffett, Derek Foster, Money Management And Vancouver Real Estate
- Hold on to your belly and have tissue paper standing by. You might cry from laughing too hard while reading Blain’s 50 Ways You Know You’re An Emotional Investor. Ah, those were the good old days. These 50 items don’t apply to me no more. Yeah, right.
- If you want free advice from the world’s greatest investor, go check out Get Rich Slowly’s post on Q&A session with Warren Buffett. Many curious students are probably asking the same burning questions that you might have. Get inside the mind of this jewel, and learn about risk-taking, moats, branding, diversification, international investing, REITs and many more.
- Derek Foster, a Canadian dividend investor who retired at a tender age of 34, followed up with a new book, “Lazy Investor”, after his successful publication of a national best seller, “Stop Working: Here’s How You Can”. You can have a cursory view of his investment philosophy here. His $600k portfolio contains a mere 17 stocks, which include the likes of Royal Bank of Canada, Manulife Financial, RioCan REIT, Canadian Oil Sands Trust, Johnson & Johnson and Wal-Mart.
Focusing on dividends changes one’s perspective on the stock market, he writes in The Lazy Investor. Instead of fearing market corrections, dividend investors welcome them as an opportunity to add to their positions at a lower cost. In effect, they get to purchase a stream of income at a discount.
- 20 timeless money rules - Money Magazine collected the best advice from some of the smartest investors (and other people) who have ever lived.
- Yes, buy growth stocks, but don’t overpay. Buy 3M, but shun Research In Motion. The Motley Fool explains that investors should seek unappreciated growth. You want to snap up some rotten growth stocks while the rest of the market is napping. When the market sets the expectation bar so low to the ground, all the businesses have to do is to roll over it to get the market cheering with pom-poms.
- Financial Planning and Personal Sanity shares a real life American story on how subprime has destroyed both the marriage and solvency of a young Seattle couple. This serves as a reminder to not rush in to the market with a high ratio mortgage because you’re afraid to be “priced out forever”. There’s also a link to an article demonstrating why Vancouver, with a P/E ratio of 26.81, is the 6th most over-priced city in the world.
Moreover, Financial Planning and Personal Sanity highlights that the number of years of the average worker’s gross income it would take to pay off the benchmark single family home in Greater Vancouver is 9.4 years, far exceeding the historical average of 7. The previous 2 bubbles peaked at 8.1 and 8.8 respectively, so we’re living on borrowed time.
Hah, thanks man for the link up, that was one of my favorite posts to write. Have a great weekend.