Category Archives: Investing
I Plead Guilty To Being An Emotional Human Being
I have to admit, I don’t have the best ‘education’ when it comes to doing investments. I didn’t grow up in a family, that taught me all about finance, and even during my education International Business Management, investments and the stock market wasn’t dealt with in great detail. I did my first investment in 1998… or rather speculation, when I bought an option in a company, which later appeared to have falsified its bookkeeping; and thus they went bankrupt. I didn’t touch investments for a few years. Then I learned a bit more about fundamental >> Read More
Where Did The 100 Euros Go?
I found myself in a typical situation yesterday, one that I have been trying to avoid since 2009. I was going over my checking account balance, and discovered a missing 100 Euro amount. Something wasn’t right, I felt like someone had stolen it. I took a good look at my finances, and found an incredible amount of 100 Euro booked to the category ‘to go products’; I use this category for all unnecessary food and beverage items, which are bought quickly when I am going from A to B. Back in 2009, I just bought an item when I felt like it. I might have bought a coffee to go, >> Read More
Getting The Big Picture: A Market Snapshot
In all the emotion and uncertainty of today’s turbulent markets, we tend to lose sight of the big picture. Well, at least I do. The human mind has the unrivaled ability to forget, or to distort memories and experience, or to think things are alright whereas they are not, or to think things are going down the drain whereas they won’t… I bumped into a website today, which provides exactly that: the big picture. Which crises did we have in the past, how did the major exchanges develop during the past 100 years, and where do we stand today in comparison to past major bear >> Read More
The Beginning Investor – Guidelines to Consider
Last week I have started writing a series about investing and fundamental analysis. But then it came to my mind, that I had not yet even devoted an article to some of the basics, which I believe would benefits each investor (or upcoming investor). Therefore, I want to take some time now to elaborate my personal golden rules of investing. #1 - buy low, sell high Ofcourse! Buying a stock when the price is low and selling when it is high makes sense. But yet, many people buy a stock when it is quite expensive already, or when it is about to reach a top. It is a psychological phenomenon: >> Read More
Fundamental Stock Analysis: the P/E Ratio (Price-to-Earnings Ratio)
I know, most of you would have expected me to dig into the financials of a company first. However, I have explicitly chosen to write the first article on fundamental stock analysis about the P/E ratio. The P/E ratio stands for Price-to-Earnings Ratio, and might is also referred to as PER. The P/E ratio measures the price paid per share relative to the earnings on that share, or the Earnings Per Share. The P/E ratio is expressed in years. As such, having a P/E ratio of 8 means that if I would buy 1 share, it would take me 8 years to earn back my investments on that share; A P/E ratio of 30 >> Read More
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