Volatility Is Not Risk; Permanent Loss of Purchasing Power Is

The idea that volatility equates to risk is a self-imposed dungeon constructed by over-leveraged traders and those who lack understanding of the intrinsic value of the assets they own. In this article, I illustrate examples of how to–and how not to–navigate volatility, and how to play the game correctly so that volatility becomes an ally rather than an obstacle.

Circle of Competence – Everything You Need To Know

This mental model was designed to help investors make better investment decisions. However, you can also apply it to other areas of your life in order to be more efficient. You should always aim to operate within your Circle of Competence, because that is where your efforts will yield the highest reward.

Advantages of Micro Cap Investing

Micro caps are stocks with market caps under $300 million. Wall Street typically overlooks them because they’re too small, but here’s why they can make you more money – if you have the skills.

How Value Investors Combat FOMO Trading

FOMO stands for “Fear of Missing Out.” When you chase an expensive stock and buy it simply because it keeps going up–despite having determined that the stock is too expensive or not within your circle of competence–that’s called FOMO Trading.

The Flaws of Relative Valuation

Reasoning by analogy versus first principles. An example of the former. Two fatal flaws in relative valuation. And some first principles for investing.