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Saturday, September 21, 2019

What is Value Investing: The Beginner’s Guide

Investing in stocks is considered to be one of the most powerful methods you can use to attain financial independence. However, it’s also a great way to lose your hard earned money if you don’t know what you are doing. In the stock market, many people have different strategy to invest. Some uses chart and technical analyst when picking a stock which can be considered to be speculating. Some prefers to invest in stocks as if they are investing in a business. This is where the term Value investing comes in.  It is like an art skills on picking a stock as an investment. Value investing is a strategy of which so appealing for beginners because it is designed to both reduce risk and unlock potential profits. It is an investing strategy that involves on how picking stocks listed in the stock market that appear to be trading less than or within their intrinsic value. The term was first inspired by Benjamin Graham who is the author of “The Intelligent Investor” and in some circles, he is known as the “Father of Value Investing”. Benjamin Graham was also a mentor to one of the most successful investor name Warren E. Buffett. With this method of investing, many investors had made fortune in their investing career. Some of the successful investors such as Peter Lynch, Joel Greenblatt, Ray Dalio, and many more had done very well using value investing method. These investors had used value investing principle when picking a stock to invest. Anyways, are you curious about this method of investing? If you want to invest in stock safely, I think value investing is the right investing method for you. In this content, I would share with you readers the investing method of Value Investing, and how you can apply this investing term to the way you invest in the stock market. Moreover, I would like to share why I use this method as my investing strategy to pick my dividend growth stocks to my portfolio holding.  

Tuesday, September 17, 2019

8 Traits of People Who Are Millionaires

Many people work hard in their career hoping they can someday become a millionaire. I think most people in the world would answer “yes” if they were asked whether they want to become a millionaire. There are studies that show that there are 10 million “millionaires” just in the United States alone. So how did millionaires become wealthy in the first place? Did they inherit the money from their wealthy parents or maybe win the lottery? You would be surprise when I answer this question. The truth is that 62% of billionaires in the United States are actually self-made, meaning that they got to where they are by themselves. I was curious about millionaires that became wealthy and went to do a deeper analysis by reading the book The Millionaire Next Door by Thomas Stanley. I read the book and learned that 80 to 86% of millionaires in the United States become one by creating their own wealth. I was surprised with these facts about millionaires. I always thought that people who are wealthy made it is because of financial support from their parents or got lucky in certain aspects of their life. So what made these millionaires or billionaires different from us? Why are they able to achieve this magnificent wealth by themselves? The truth is that the traits of millionaires do have can be adapted by anyone who chooses to adapt them. I am willing to share my knowledge and research about the traits of millionaires in this article.

Saturday, September 14, 2019

12 Steps to Purchase Your First Rental Property Investment

For generations, real estate investment has been used by many investors who seeks passive income stream. Not only it provides excellent passive income coming in your pocket but it can also increase your overall asset value and earn higher rental income futures ahead. Real estate has produced many people to become wealthy. No wonder, my brother and my dad had become a real estate investor themselves. They are able to benefit from the passive income as well as capital appreciation from the properties they own. It’s almost everyone’s dream to be able to own a rental property. I myself want to own rental properties since there are many benefits of owning them. I’m blessed that my dad let me collect the rental income from one of the property he owns. It allows me to receive passive income that I use to purchase more dividend growth stocks. My dad was also blessed since the property he let me manage actually increases in value which of course made him wealthier. Anyways, the question to becoming a real estate investor is how to actually become one. Buying an investment property is a big deal. It’s not like buying a few shares of stocks in the stock market that only require a small amount starting capital. Moreover, many people don’t have the starting capital to purchase one since it requires you to have a huge sum of money. The reason why I’m not a property investor yet (own by myself) is also because I don’t have the knowledge and the capital to invest in one. But this doesn’t stop me to learn more about it. Because of my curiosity and ambition of owning one myself, I decided to study this topic on the internet. After hours of research on how to purchase your first rental property, I would like to share the knowledge and tips in this article.

Wednesday, September 4, 2019

The Meaning and Benefit of Having Economic Moat

The term Economic Moat is a term that is used by many value investors in the investing world. The bigger the moat means the safer for the investors to invest their money in the company. It was a term that is popularized by a successful investor Warren Buffett. Economic Moat refers when a company or business that has the ability to maintain its competitive advantages over its competitors in order to protect market share and its future earnings. It’s like a castle in the olden time that have a moat around it, the moat functions is to protect those inside the fortress and their enemies from coming in. Having a stronger moat such as having water surrounding the castle makes it difficult for enemies to attack. This is similar in the investing world. It’s great to buy stocks which companies have a strong economic moat. These companies are able to sustain their business and to stay one step ahead of their competitors. One of Warren Buffett’s secret of success in his investing career is to invest in companies that have strong economic moat. Warren investing in companies with great economic moat allowed him to hold companies for a long period of time. He likes to invest in companies that have a long business prospect so that he’s able to keep holding them in his portfolio without the need to sell the companies often. In this article, I will discuss further about economic moat and why it’s important in the investing world. I will then also explain about how to spot whether a company has an economic moat and why I prefer investing in companies with moats around in my dividend growth portfolio.