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Why you should not be afraid of picking out stocks

Some people get a thrill trying to pick the right stocks, but the majority are afraid they will pick the wrong ones. But here is a statement: As long as you invest in a market ruled by professionals, you will always buy a fair priced stock. To understand this statement, you have to understand how share prices are set and who affects them.

Who affects share prices?

Certainly not you and me when we are talking larger stocks. Of course we cast our votes with our money, but we at too small to matter in the big market. A lot of people let an investment professional manage their funds instead of trying to do so themselves. This causes that the most successful and thorough professional investors often obtain control over large sums of money and thus more power to determine what the share prices should be.

Portfolio update – November 2017

It’s time for the monthly portfolio update for November, and SORRY! we know we are late.

In November we have invested in Schouw & Co. A/S and increased our number of shares in ISS A/S. This showed up being a really bad idea in the short run as both stocks have fallen more than 10% in November – good thing we are long term investors.

Looking at our entire portfolio, November hasn’t been the best month.

We are down 3,62% in our currency. Our newly bought stocks combined with Vestas Wind Systems are the stocks with the worst performance this month and are big influencers in the negative return.

How do we all make money?

In rough terms, there are only two ways to make money. Trade your time for money or trade your capital/assets for money. Most people does both throughout their lives. They have a job where they trade their time for money and they have some assets in form of surplus capital in a savings account or in investments that generate some money.

With this in mind, there are only four ways to increase your income. On the “time for money” side, you can spend more time working or you can learn unique skills so you can demand a higher salary for your time. On the “asset for money” side, you can acquire more assets or use the ones you have more efficiently.