There’s an old joke about two economists walking down Wall Street when they come upon a $100 bill lying on the ground. As one bends over to pick it up, his colleague stops him and says “Don’t bother. If that was actually a $100 bill, someone would’ve already picked it up.”
This joke epitomizes the efficient […]
Risk is the possibility of losing money. Every investment has a level of risk. Even treasury bills, which are commonly referred to as risk free investments, have credit risk associated to the United States defaulting on their debt (highly unlikely). An investor can avoid dramatic losses and minimize the level of risk […]
When it comes to saving and investing, you might think that the most important thing to do is make the best investment choice and you will have the best chance to achieve success and to grow your money the fastest. Even though investment choice is highly correlated to how your investment performs, there is […]
“Rule #1: Never lose money. Rule #2: Never forget rule #1.”
- Warren Buffet
How can you prevent losing money? Well, you’d be surprised how few people understand the concept of proper position sizing. It’s actually very simple and will save you a lot of money. Every time you decide “how much” money to put into […]