Reader Question: I’m a highschool student and I am very interested in investing and economics. I am wondering what is the best thing to do with the money I have save so far. I suppose that one major question that answers mine is what do I wish to accomplish? I am not completely sure, … Continue reading Q&A: I’m Interested In Investing, What Should I Do With My Money?
Practical methods for evaluating investment performance, and how not to be automatically disappointed when you see a negative price change by tempering expectations and being disappointed about the right things.
Misinformation in assessing investment performance leads to poor investment decisions, and losses in investing over many years. The reason behind the problem are bad habits formed by years of brainwashing & the wrong mindset. There are two crucial factors in investing related to evaluating investment performance. This post empowers investors with the knowledge needed to overcome the misinformation.
Conventional wisdom says that investors should review their portfolio’s annual performance (returns). I discuss why conventional portfolio and investment evaluation metrics are not meaningful or relevant, and why investors should not rely or pay too much attention to them.
For many investors, the jargon used in reports & earnings calls is largely foreign, Yet, the desire to learn it can leave you overwhelmed and confused. Fortunately, with most investments it all really boils down to focusing on a few key issues out of the vast amount of information!