What do the wealthy invest in?

What do the wealthy invest in? More stocks than funds or properties, according to the IRS

Posted Leave a commentPosted in Investing

When considering which asset classes to invest in, it makes sense to ask “what do the wealthy invest in?”. First generation American millionaires tend to earn more of their wealth from their investments than directly from their salaries, and so one guide for deciding which of the many different types of investments best build wealth […]

When the market falls, don't sell your stocks or your house, but look for rising rents/earnings

When the market falls 10%, you don’t sell your house or your stocks, but look for rising rents/earnings at better prices

Posted Leave a commentPosted in Investing

Over the past week, stock and bond markets around the world have fallen more than many people remember seeing in years.  After an amazingly smooth ride up in 2017, when the S&P 500 index rose almost 20% without declining more than 2% on any day that year, investors were suddenly reminded over the past week […]

Investing in Stocks vs Property, Yale data

Investing in Stocks vs Property, Stocks Rose 7x More than Real Estate Over 125 Years of Yale Data

Posted Leave a commentPosted in Investing

I am often asked about investing in stocks vs property, as owning physical residential real estate is an understandably popular investment choice in Hong Kong and other major cities.  Urban professionals have seen apartment prices, and their rents, rise faster than inflation and almost as quickly as their salaries, and there is a level of […]

How to invest a bonus

How to invest a bonus

Posted Leave a commentPosted in Investing, Personal finance

In January and February many firms, especially banks, give out annual bonuses to employees, which in some cases make up a large percentage of the employee’s annual earnings.  After years like 2017, when the economy and global stock markets have done exceptionally well, I am naturally asked, more than in most years, about how to […]

G for got it - what I hope a 10 year old child will say after buying their 10 first stocks

10 first stocks to buy a 10-year old to start investing early

Posted Leave a commentPosted in Education, Investing, Personal finance

My latest article describes how to choose the 10 first stocks to buy a 10-year old, and why I think it’s important to start kids investing in individual companies rather than mutual funds from an early age. As I disclose: I bought Coca-cola for my older child and PepsiCo for my younger child because they […]

Hong Kong ETF list published by HKEX (Hong Kong Exchange) on Nov 2017

Hong Kong ETFs Remain China-focused, Bond-light, and Under-owned

Posted Leave a commentPosted in Investing

Hong Kong ETFs are, and are likely to remain, the best way to trade and broadly allocate to China, it is not hard to argue that Hong Kong has the best ETF market in Asia.  As a reference, I am posting below a scan of the brochure the HKEX handed out at a recent ETF […]

Investing Retirement Accounts: Starting with $20,000,000, a retiree withdraws $800,000 in the first year, and 2% more each following year. At 4% and 5%, the retiree runs out of money, while at 6%, the account keeps growing.

Investing Retirement Accounts: What rate of return vs level of risk to aim for?

Posted 1 CommentPosted in Investing

When investing retirement accounts, we are often told to invest aggressively (mostly in stocks) when saving as young employees, and then rotate more and more of the account towards more conservative investments (bonds and REITs) as retirement approaches.  One overly simple rule is to allocate 100 minus your age in stocks, so that a 20 […]

largest companies in the world - usually thought of by their skyscrapers

50 largest companies in the world by market capitalization as of 2017 end

Posted Leave a commentPosted in Investing, Lists

Investors looking to replace index ETFs or more expensive stock mutual funds or closed-end funds with direct positions in blue chip stocks may want to start by owning some of the largest companies in the world by market cap.  Market cap is simply the total value of shares outstanding, and most index funds and ETFs […]

10 Personal Questions to Ask Your Financial Advisor

Posted Leave a commentPosted in Personal finance

Yesterday I posted 10 non-personal questions to ask your financial advisor, which I thought would only be complete with 10 personal questions to compliment them. Other professions may also have stereotypes like the smoking doctor, the bald barber, the lawyer without a will, or the serially monogamous marriage counsellor, but finance professionals probably have the […]

10 Non-Personal Questions to Ask Your Financial Advisor

Posted 1 CommentPosted in Personal finance

Even in the many years before I decided to start competing in the space of financial advisors, I noticed a paradox among financial advisors: A. There were both enormous differences between what different people calling themselves “financial advisors” actually do, yet B. Financial advisors have a hard time differentiating themselves from their competition As a […]