Quitting at a loss to free up capital and the mind

Today, I’m writing about one of my (former) best stock ideas which didn’t play out as initially thought. Besides describing the case and the reason that led me to throw in the towel, I also want to use it to show why it’s important to regularly go over one’s portfolio and to cut the weeds.

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Why it makes no sense to copy Warren Buffett

This is a topic I’ve wanted to write about for a while. Those stock pickers who decide not to migrate to the camp of chartists, tee leaf readers or other witchcrafts, will likely join the group of value investors. In this context, the name of Warren Buffett must not miss. Many investors claim to emulate his strategy, others try to seek inspiration which stocks to buy. Today, I will show that both are delusions.

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(Why) You should not try to outsmart the market + new research report

It is no secret that many retail investors tend to act on the stock market exactly contrary compared to what they do in everyday live. A special discount or promotion – let’s get it! When stocks fall – panic. When stocks or themes are en vogue, they jump in to not miss the (rolling) train – despite the next coming. Often, this behavior is explained by emotions of fear and greed. However, it goes further than that. There’s a component to it, I call “pseudo-logic”. Why you should be cautious with logic when investing is today’s topic.

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Suffered losses or missed opportunities – what’s hurting more?

Over the last days, I was thinking about some personal stock investments that I either sold too early or even never managend to initiate at all – because I was waiting for a correction which never came. To the contrary, I have to really think longer and more intense about realized losses, just to name a few – not because there were none (there were), but because I threw them out of my mind.

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Why you need to remove your portfolio losers regularly

Sooner or later, everyone will discover that an investment did not work out as originally expected. Such losing positions in your portfolio not only affect your overall performance. What can have even worse consequences is the psychological effect these positions have on you as an investor. I also discuss one personal misinvestment of this year.

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Buy now pay later or financial independence retire early?

In the last few years, two opposing philosophies about how to manage personal finances have been making the rounds. What’s the difference between the two? What should you learn as soon as possible to find peace of mind, now that the economy is declining while simultaneously interest rates are rising fastly (not falling)? How could they influence your mindset and investment allocation?

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