Warren buffett is a world renowned investor who is highly considered one of the greatest ever. Ever since he took over Berkshire Hathaway in 1965, the stock has averaged 20 returns per year, double the average returns of S&P500.
Over time, Berkshire has generated a total return of 2.8M % returns as compared to the S&P measly 23,000% returns.
He has achieved this success by following a very simple set of rules that was summarized by the 4 principles below:
Other than understand the 4 guiding principles that Warren Buffet used for investing, there are 3 challenges facing investors in 2022 and they are:
1. Overvalued Stock Market
In an overpriced market, investors must be patient to wait for the right time to invest in the stocks that they have always wanted to invest. Another approach is doing Dollar Cost Average (DCA) on fundamentally good companies and disregard the short term turbulence and volatility.
2. High Inflation
Regarding high inflation, investors should look to business that have these characteristics:
3. Rising Interest Rate
Regarding high interest rate, It is like gravity to stock market valuations, the higher the interest rate, the harder it is for the valuation to rise.
If you have 15 mins to spare, do watch the full analysis in the video below to educate yourself on how you should invest in 2022.
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Keen to learn about options trading but do not wish to pay for expensive courses, this newbie guide will help gain the knowledge and fundamentals to understand options better. And it’s totally free!
The Newbie’s Guide To Options Trading
The LEAPS Strategy has helped me make more than USD120,000 in 2021. Here’s all you need to know about this strategy that can help you increase your wealth exponentially:
The Ultimate LEAPS Options Thread
Looking for ideas on what stocks to invest in or which stocks to trade? You can take reference from what I have been buying or selling. I try to update them as soon as I can in this section, as well as share my thoughts behind executing these trades:
MY TRADES
Excited to start your trading journey or perhaps try out with a paper trading account to build your confidence in trading? Check out this step-by-step to help you get started:
How To Buy Options on Interactive Brokers (Step-By-Step)
If the bear market in 2022 is making feel depressed as your stocks come tumbling down, read this article to find out how you can use options trading to help you claw back some of your losses as you await market recovery:
How I Do Earn Even When The Stock Market Is Bearish?
I watched tons of videos on YouTube since 2020 and if you are wondering if there are any useful channels that you can subscribe to for learning market trends, TA, FA, check out this compilation here:
My Secret Weapons For Options Trading: I Watch These YouTube Financial Channels Every Day
I concluded my first year of options trading with more than USD160k of gain, see how I do it and the capital I use for every month to give you a sensing of the percentage yield I get out of my gains:
1st Year Options Trading Recap: The Journey Towards SGD$217,509 Profits In 2021
This blog is as authentic and as transparent as I can share, I do not just show the wins and hide the loss. I have made some very bad decisions in the first 8 years of investing and paid a huge price for them. Here is the loss I have accumulated during these years. I hope you learn some lessons from my mistakes.
I Cut $135,715 Worth Of Losses In The Last 1.5 Months
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Learning Investment With Jason Cai 