Our goal is to help everyday investors make better investment selections and accelerate their financial independence.
The purpose of this site is to help new investors avoid the same mistakes we made when we first started investing and teach how to pick winning stocks. Have you ever figured out the secret to completing a maze? You need to begin at the end and move to the start.
In Charlie Munger’s speech to Harvard in 1986, he focused on a theme originating from a German mathematician which is to “invert, always invert.” Just like you complete a maze backwards, you must also approach solving difficult problems looking at it from both sides (forwards and backwards).
For example, if you want to live a great life, one approach is to think about all of the things that would make your life great:
- Strong relationships
- Financial Independence
- Healthy body, mind, and soul
But this is from a forward thinking perspective. If you wanted to achieve these three bullets above, perhaps the better approach would be considering how to ensure that you would not achieve the three bullets. From an inverted thinking perspective here is a brief list I have come up with:
- Be unreliable
- Act selfishly
- Don’t exercise
- Be envious of others
- Get into heavy debt
- Become addicted to mind altering drugs and alcohol
- Only listen to yourself
- Wallow in self-pity
While I am not sure exactly how to make your life great, I quite confident how you could make your life miserable. Use this inverted thinking the next time you encounter a problem and you’ll be surprised at the simple insights you gain.
We use this approach when picking stocks for our flagship product which is currently crushing the S&P 500! Check out our Wide-Moat Profitable Growth newsletter to learn more.
We often receive questions from new investors relating to how they can take $100 and quickly turn it into a massive gain even if this involves lots of risk. This is absolutely the WRONG approach to long-term successful investing. If you feel the need to have some fun and gamble – take your $100 and bet on black at the roulette table in Vegas. Funny story, my friend bet $100 seven times in a row on red and lost each time!
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If you are new, sticking to low-cost passive index funds such as ones offered through Vanguard would be a good bet. One passive fund I would recommend is called Vanguard Growth ETF (ticker symbol: VUG). This ETF has over $36B in assets, an expense ratio of 0.05%, and is primarily invested in large-cap growth stocks. The top five holdings are Apple (AAPL), Amazon (AMZN), Facebook (FB), Alphabet (GOOGL), and Visa (V). Wondering how you can see all of this information about a fund for free? Check out our free resources page. By owning this ETF you would instantly have a diversified portfolio with a basket of 306 total stocks gaining exposure primarily in the technology, cyclical, healthcare, industrial, and financial services sectors. This fund has also out-performed the S&P 500 for the last 10 years.
Whether you decide to do active or passive investing, stick to these fundamentals and you will do just fine.
We are two investors who always threw ideas towards one another and over-time found out that by pairing our ideas together we picked winning stocks. For over ten years we have been sharing ideas and wanted to build a site where we could share our top research with others. Also, we actively participate in a Milwaukee Investment Club and have written for other sites such as Seeking Alpha. While I hold my degree in Finance with an emphasis in Financial Planning, neither of us are registered investment advisers or chartered financial analysts. We simply research and share our ideas because it is our passion!