A long time ago on a planet far, far away…
Economies are collapsing, viruses are ravaging the population,
politics is starting to remind toddlers fighting in a sandbox
yet interest rates are negative, valuations have gone
through the roof and iPhone-s have no headphone
jacks. Literally nothing makes sense anymore.
Is there any HOPE ??????
So this is the start of my journey as an investing blogger. For some time I have had this idea in the back of my mind but I always felt like I would not have the time to do it. You might be asking what changed? Did I all of a sudden get tons of free time? Due to the Corona virus that is kind of true but even more I have started to understand just how much time I am wasting with meaningless stuff like watching Youtube or scrolling on Facebook. So to say that I do not have the time is nothing but a convenient lie.
I mean I am already keeping myself up to date with what is happening in the stock market and quite often find myself posting thoughts in financial groups and forums so why not take the extra hour or 2 to formulate them in a nice way and share them to the “wild wild web”.
What will this blog be about? This will not be a blog that tries to cover every topic on earth to help the beginners get going although I might add a page that points to good resources. Rather it will be a blog where I share my philosophy on investing and also the progress of my portfolio which tries to follow that philosophy. I will not be revealing the actual euro amounts but I will be fully transparent when it comes to the purchase prices, percentages that positions make up from my portfolio and what are the increases per position which together should give enough information for the reader to verify that I am being honest. Also I will try to keep the delay between a purchase and writing about it on the blog as small as possible so that any of you can buy the instrument at a similar price if you find that my reasoning for the purchase makes sense.
I will also be sharing interesting buying opportunities that catch my eye which one can use as inspiration to do more research on their own. I strongly believe that one should always check multiple sources when buying a stock and never believe a single source. So I highly encourage no matter what I write in case of interest to do additional research on your own.
As I am most interested in investing in stocks then you can assume that almost all posts will be related to stocks with an occasional exception.
So what is my philosophy as an investor?
On a very high level I strongly believe that money should not be your end goal in life because there is no pot of gold or happiness in the end of that road. Money is just a means to an end.
What does that mean? It means that I will save as much as I can while still allowing myself a lifestyle which I will not regret. In addition I do not have an ego attached to investing so I have no need to squeez out every penny of profit I can and finally I will not be reading financial reports day in and out. I mean I am doing it more often than a usual person but still in a way where I have more then enough time for other hobbies.
On a more technical level I am a buy and hold type of investor which means buying a good company at a good price and holding it for many years to come despite what the market does. I am hype intolerant. Which means I will very rarely if not ever be buying a stock which is all over the news and whose price has skyrocketed. I am also value oriented but at the same time I am not dogmatic about P/E or P/S ratios. I also mostly avoid stocks that do not have a promising long term future despite how much value they offer. I want to find stocks that have large growth potential yet which are still under the radar and thus offer decent value. This has led me to focus mostly on micro or small cap stocks.
I also believe one should assume that he is not a good investor unless strongly proven otherwise. That is why despite some recent success which I will be writing about in my next post I am still assuming that I have made horrible purchases which will go down in the long run. That forces me to diversify into many stocks and also keep big positions in ETF-s which should ensure that even if I am a horrible investor, I will have something to show for my effort. That might change once my track record stays consistent during a longer period. In which case I will buy less ETF-s and take more risks in stocks.
In order to keep this post from growing too long I decided to write the recap of 2020 in the next post which will follow in a few days. There I will also write what positions make up my portfolio and where I will be spending my savings in January.
The final mystery
But there is one last mystery we have to solve before I wrap up. That is where the hell did the name of the blog come from? Well it comes from a scene from a movie that is stuck in my memory.
In a way this represents me as an investor. Just like the little engine who kept going no matter the hardship so will I no matter what is going on in the financial world keep investing. At the same time I am a guy who likes to crack jokes and laugh my ass off thus adding a comedic twist to the blog seems totally appropriate and should the shit really hit the fan in the financial markets then the funny name should remind me to not take this too seriously as as long as you act to the best of your abilities then that is enough.
THAT IS ALL FOLKS.
Stay tuned, stay awesome and stay invested
The Hobby Investor that could.