How too much diversification can hinder you in building wealth.
Investing
My thoughts and philosophies on investing and trading.
![Fred Carach](https://www.paolomagaan.com/wp-content/uploads/2019/08/image-750x410.png)
How The Stock Market Doesn’t Behave Like A Market
![Fred Carach](https://www.paolomagaan.com/wp-content/uploads/2019/08/image-750x410.png)
A real estate appraiser’s definition of market value shows that the stock market doesn’t behave like a market, and should therefore never be taken at face value.
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Time and Space Create Trading Opportunities
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When space and time is traversed, profits can be made. As a stock trader, I cannot take a stock through space to arbitrage for profits as ancient traders once did. But there is another dimension I can arbitrage: time. The same way goods can increase in value through space like the Asia-to-Europe spice trade, stocks can increase in value through time.
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What is “best-of-breed” in investing?
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In dog shows, the highest-ranked dog of each breed wins a “best of breed” award. This terminology was brought over to the stock investing world to describe equities whose underlying companies are leaders in their industry. I am not fond of the term “best of breed” for stocks, mainly because 1) companies aren’t animals, and […]