Most Fund Managers Fail to Beat the Market There are tens of thousands of full-time money managers and stock market analysts in the world. Most of them consistently underperform a broad diversified index. (Research indicates that up to 89% of fund managers fail to beat the market.) That’s a lot of invested life energy, for,…
Tag: Money
Why Invest at All? (If You Have a Good Job and Good Salary)
I feel that not enough people (especially here in Switzerland) have an investing mindset. A lot of people have high-paying jobs and are leading quite comfortable lives. Why should they bother investing? Cash is a bad store of value Every year, cash is losing purchasing power. It might not feel like much year by year,…
How to choose a money manager?
You’ve inherited some money, or sold a business. What now? Most people don’t have the skill, time, or willingness to manage their own investments. One option is to entrust your funds to a professional money manager. But how to choose one? I would recommend the following checklist: 1. Skin in the gameThe first question I…
The Key Principles of Value Investing
The style of investing that speaks most to me is value investing, as practiced by Warren Buffett and Benjamin Graham. I’m often asked: “What is value investing exactly?” Here is my understanding of the core principles: Have more purchasing power in the futureThe goal of all investing is laying out money today, so that you…
The Cost per Use Principle
Do you want to spend less money than you earn, so you can save more, invest more, and ultimately achieve financial freedom? Then I suggest you pay attention to the Cost per Use Principle: For each material possession (especially the most expensive ones), calculate and minimize your cost per use. Crave a swimming pool? Then…
26 Ideas to Save Money
Below is my list ideas to save money. A lot of the ideas came from other fellow readers — that means you. Enjoy! 1. Focus on the big ticket items:Don’t optimize the tiny things, before you have your 2–3 big ticket items in order. Usually these are your rent, your car, or healthcare expenses. 2. Rent:– If…
How to save money
I am deeply passionate about efficiency. And I love to apply this passion to money: For the first few years of running Trigami, my take-home salary was 2500 CHF per month, so I was forced to master the money-game very early on. From that, I saved 1000 CHF per month and paid back my 25’000…
Why home-ownership is a bad idea
A couple of years ago I almost bought a house. The mortgage was ready. The seller had chosen me as his #1 buyer. I simply needed to say yes and sign the papers. Due to some dumb luck I got distracted, then got cold feet and finally backed off. Thank you, Dear Universe, for the…
The Secret of Making Money
One of the best talks about entrepreneurship and business models i’ve ever heard. Key thoughts: Charge money (WHO would have thought of that!!!) Provide great service (if you order shoes at 10pm and they are delivered the next morning, you’ll use this service again → Zappos) Be a decent italian restaurant. You don’t need to…