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Investopedia defines diversification as “a risk management strategy that mixes a wide variety of investments within a portfolio” (3). This is not a new idea; it was first mentioned in an economic sense by Bernoulli in a 1738 article (1) where he argued that risk-averse investors would want to diversify: “Another rule which may prove useful can be derived from our theory. This is the rule that it is advisable… Read More »Funds pt.2

Opinion Piece: By Jonathan Primo Fuego Galicia, CFO Bargain Hunting during the COVID-19 shutdown is something most Sophisticated Investors are embracing as we continue social distancing. Bargain portfolio asset hunters are few and far between the typical market investor. I draw an imaginary line in my mind that represents the trade-off between quality and price; most investors find themselves creeping toward quality. Accepting a higher trading price in return for… Read More »Bargain Hunting

According to K. Geert Rouwenhorst, in his paper, The Origins of Mutual Funds, the concept of an investment fund is dated to Holland in 1774 when “the Dutch merchant and broker Abraham Van Ketwich invited subscriptions from investors to form a trust… to provide small investors… an opportunity to diversify.”(1) This occurred in Europe at the time of the credit crisis of 1772 when over-valued stocks crashed the stock market.… Read More »Funds

Opinion Piece: By Jonathan Primo Fuego Galicia, CFO Every investor wants a guarantee. I want a guarantee. When I go to a doctor or a lawyer, I would love a guarantee that the doctor’s treatment or the lawyer’s advice is going to work every time. But sadly, that isn’t the case. If I give you indicators, systems, and your success depends on the weakest link in the chain, as I’ve… Read More »There Are No Guarantees

Opinion Piece: By Jonathan Primo Fuego Galicia, CFO The importance of effective and consistent trading methodologies, along with other factors, and forces can denigrate performance or lead to losses. Even the most profitable trading approach can be rendered useless in the hands of an undisciplined trader. I’ll be honest: Clearly, the weakest link in the trading chain has always been and will always be the trader bias. Twenty-six years ago,… Read More »The Weakest Link In A Trader Chain Is Bias!

Much has been made of whether or not day trading serves a useful purpose for markets and for society in general, “YES”, it is true, traders are aggressively looking to profit from the markets and from other investors. They don’t add much value in terms of providing capital for the function of free capitalist society or the companies. As such, they provide a useful function by making a market, by… Read More »Day Trading in the Public Eye

I spent ten years analyzing how other buyers of time became rich people in our society and found there are generally four paths we all have taken.  Path 1: Dreamer-Entrepreneur Path The Dreamer Path requires the pursuit of a dream. This might be starting a business. It might involve becoming a successful author, musician, actor, or artist. Or it might be the creation of an app, product, or some unique… Read More »How Buyers of Time Became Rich

We are experiencing unprecedented times as in terms of COVID-19, but we have had market crashes in the past. The most recent crashes were the dotcom bust in 1999-2000 and the housing crash in 2008-2009. Although many investors lost money during these times, some investors used these events to increase their wealth. Two examples of those investors were Warren Buffett and Carl Icahn. What can we learn from these investors… Read More »COVID-19 and the Markets

You’re Never Too Old and You’re Never Too Young If anyone tells you that you can’t build a business that others are willing to buy, use that small-minded thought to inspire you. It is true that Gates was very young when he started Microsoft, yet Colonel Sanders was 66 when he started Kentucky Fried Chicken! There are certain personal traits that are required to be a successful entrepreneur: VISION: The… Read More »You’re Never Too Old and You’re Never Too Young

How does an individual with no experience in capital allocation, start a business? How do aspiring entrepreneurs ensure their success? To be a success, one must start at the beginning. Learn how to develop the skills necessary to become a skilled financial manager. Learn how to spot key indicators for good investments. These financial skillsets will benefit you both personally and professionally. Acquiring and allocating capital (financial management) is the… Read More »Financial Manager