What Is Fad Investing and Why It’s Dangerous? Fad investing is the tendency to chase hot, trending sectors or stocks based on hype rather than business fundamentals. Whether it’s tech IPOs in the late 1990s, cannabis in the 2010s, or NFTs and SPACs in recent years, the dangers of fad…
Tag: MSFT
Super Investor #37: Allan Mecham – The Buffett-Style Value Investor Without the Fame
Super Investor #37 in our series is Allan Mecham – a lesser-known but exceptionally disciplined value investor whose concentrated, long-term approach has earned comparisons to Warren Buffett. While his name might not dominate financial headlines, Mecham’s track record as the founder of Arlington Value Capital speaks volumes to buy-and-hold investors…
Hidden Risks of Over-Diversification of Your Portfolio
Diversification Is Protection Against Ignorance Warren Buffett famously said, “Diversification is protection against ignorance.” This quote, often repeated in investing circles, sounds provocative—especially to beginners told that diversification is a cornerstone of safety. But what exactly does the Oracle of Omaha mean by this? And how should it guide your…
How to Use Dollar Cost Averaging in Any Market
What Is Dollar Cost Averaging (DCA)? Dollar Cost Averaging (DCA) is a simple yet powerful investment strategy that helps long-term investors build wealth without trying to time the market. Instead of investing a lump sum all at once, you invest a fixed amount of money at regular intervals—regardless of market…
How Much Diversification Does Your Portfolio Need?
Why Diversification Matters for Long-Term Investors Diversification for buy-and-hold investors is a cornerstone of risk management. Whether you’re just starting out or have built a substantial portfolio, understanding how much diversification is enough—and not too much—is essential to growing and protecting your wealth over the long run. At its core,…
Tune Out Market Noise and Focus on Long-Term Gains
What Is Market Noise and Why It Matters Every day, investors are bombarded with Stock market headlines, breaking news, and expert opinions often referred to as Market Noise. CNBC, Bloomberg, and financial Twitter constantly report on market fluctuations, economic data, and “hot stock tips.” But does all this information actually…
How to Beat Market Bubbles Without Selling Everything
Understanding Market Bubbles is Essential for Investors Knowing how to beat market bubbles without selling everything is one of the most important skills a long-term investor can develop. Bubbles can shake your confidence, trigger fear-driven decisions, and disrupt your wealth-building plan—but that doesn’t mean you need to dump your portfolio…
Market Risk Survival: How to Protect Your Investments Now
Market risk is an unavoidable part of investing in the stock market. It’s the type of risk that affects nearly all securities at once, often triggered by events that are beyond any one investor’s control—economic recessions, inflation spikes, political turmoil, and global crises. For the long-term, buy-and-hold investor, understanding market…
Microsoft Stock vs IBM: Which Is Better for Long-Term Investors
Microsoft vs IBM is one of the clearest examples in recent history of how two tech giants responded differently to industry disruption—and how that shaped their long-term value. Over the past decade, Microsoft embraced the cloud, transformed its business model, and delivered massive returns to long-term shareholders. IBM, meanwhile, struggled…
Balance Sheet Secrets: How to Find Hidden Strength in Stocks
A balance sheet is one of the most essential tools for evaluating a company’s financial health, and every long-term investor should understand how to read one. Whether you’re investing in Apple (AAPL), Coca-Cola (KO), or a lesser-known dividend stock, the balance sheet tells you a lot about how safe your…