Humble Investing

Last week I wrote a post about how my wife and I decided it was time for me to quit my day job. Were going to do some traveling and think about what’s next. I love researching investments, traveling, writing, and volunteering. I think I’m a pretty darn good investor as well, but I also must recognize that my assessment is biased. This isn’t Lake Wobegon, and we can’t all be “above average”. I’ve noticed that during a bull market, just about everyone thinks they a superstar investors….and that profitable investing is easy. The reality is that the circumstances of a bull market make profitable investing look easy, but over the long term it can be very difficult. The most difficult part of investing over the long term, at least in my opinion, doesn’t really revolve around market characteristics. Stock market valuation envariably, eventually, follow along with the financial results of a given company. If the company’s revenues and profits increase, investors will be willing to pay more money for a share of that company’s stock…..and the stock price will go up. That part is easy for most investors. No, I believe what trips up most investors is …… well …….. themselves. Continue reading

Mini Hedge Fund?!

It’s been a wild couple weeks around our house, but on the horizon we can begin to see things calming down now. As I wrote last week, I recently quit my day job. We feel really good about the decision, but it does complicate our finances as my wife largely stays home with our son. She does work about 10 hours per week at our church, but by in large I am the primary bread winner. Still, we live a moderately frugal life. Not as efficiently as I would like, but that level of frugality would probably drive my wife and son insane. Our Black Lab probably wouldn’t mind, but “if mama ain’t happy…..ain’t nobody happy”. While we have made substantial strides toward financial independence, like being debt free and developing passive income streams, we aren’t ready for early retirement quite yet. On a monthly basis there is currently a $1500-$2000 deficit. We’ll continue working to close that gap, but we aren’t there yet. Continue reading

I’m Outta Here…

The last couple weeks have been fairly volatile in global equity markets. Last week most markets sold off early, culminating in a nice sell off on Wednesday, before stabilizing. In the latter part of last week, and throughout this week, the markets recovered some of those losses. We were pleased to get the opportunity to put $8k in fresh capital to work last week, and look forward to putting far more capital to work when/if the sell off resumes. Two of our three limit buy orders were filled. (As a note, we email all subscribers prior to our buy/sell orders. If you would like to receive these emails, sign up by filling out the box in the top right hand corner of this page.) Amidst that excitement though, a more personal decision was ruminating. Continue reading