Tag: passive investing
12 posts tagged "passive investing".
The strategy of buying broad, low-cost index funds and holding them for decades rather than picking stocks or attempting to time the market. It rests on the efficient markets work of Eugene Fama: if prices already reflect available information, the average active manager cannot reliably beat the index after fees. Passive investing is the financial backbone of FIRE, pairs naturally with diversification and compound interest, and stands as a standing rebuke to market timing. Warren Buffett himself has instructed that most of his estate be put into a simple index fund.
Posts:
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Is Crypto Bullshit? Calling My Shots
Nothing in this arena can be taken at face value, which makes it unusually fertile ground for battle-testing your own critical thinking skills.
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Kindly Stop Saying The Efficient Market Hypothesis is Dead
There are whispers that the efficient-market hypothesis is dead, or dying, or at least has a very nasty cough. But rumours of its death have been greatly exaggerated.
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How to Profit From Coronavirus
A black swan event unleashes destruction, but also opportunity. What would it take to not only weather this situation, but profit from it?
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Beware of Geeks Bearing Formulas
The history of finance is a history of brains splattered on the pavement. Just how safe is the buy-and-hold index funds orthodoxy?
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If the Stock Market Crashed Today
The standard line is that market crashes just don’t matter a damn if you're a long-term investor. Today, I'm no longer so sure that's true.
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Futurama Taught Me Everything I Know About Compound Interest
During the 1000 years Fry spent as a human popsicle, the interest on his bank balance of 93c compounded into the staggering sum of $4.
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Advanced Investing: The Barbell Strategy for Bastards
"Marry an accountant, but have occasional flings with rock stars." Nassim Taleb's barbell strategy won't improve marital harmony, but it's smart investing.
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The Worst Investment Ever: How I Lost $10,000 Catching a Falling Knife
I stretched out my bandaged hand, and this time the knife took a finger off. I'm a slow learner when it comes to picking stocks, but you don't have to be.
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How a Billionaire Taught Me to Invest Using the Force
I didn't get to ask David Booth to weigh in on the Han vs Greedo controversy, but our conversation was still among the most life-changing I’ve ever had.
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How to Become an Investor: An Animated Guide for Beginners
Getting started with investing is easy, and anyone can do it! Come join our hero Jimmy on his epic journey from total noob to investing mogul.
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The Optionality Approach to Getting Lucky
What is optionality? My favourite tool for finding juicy asymmetries between risk and reward, and creating your own luck.
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Reader Case Study: The 24 Year Old Millionaire
While I was chuffed with hitting my $100,000 goal, I found out an old school friend had managed to become a millionaire at age 24. Here's how he did it:
