Wednesday, December 2, 2015

Money Show 2015 - Albrecht Weller

I next attended a mini session by Albrecht Weller of Schwaben Capital Group. This talk was called "How to beat the TSX and S&P 500 by more than 5%".

How to make money in the market is to make fewer mistakes than the next guy. You need to make fewer mistakes than the market. Stock picking is a loser's game. What you need is risk control. You need to use common sense. The downside of buying stocks is that has a 50% drop is that you will need a 100% gain to get back to where you were. Does this make sense?

Try to avoid the mistakes of others. Investment gain is 90% perspiration, 8% luck and 2% genius. Good business means common sense. If you do not understand the business, do not invest.

What is want is investment growth. For this you need Revenue growth and EPS growth. But do not let revenue or earnings growth fool you. For example, if the number of shares is growing, you may get high Revenue growth, but not Revenue per Share growth.

Look for companies with growing dividends. You want companies that pay you to hold their stocks. Growth gives you a hedge against higher interest rates. (When the US raises interest rates, we have to do in Canada or the CDN$ will decline.

Mr. Market can misprice a stock. You could have rising revenues and earnings, but a declining stock price. The reasons could be a decline in the company or a mispricing by Mr. Market. You do not want to take active bets, but you want to take passive bets.

On my other blog I am today writing about Innergex Renewable Energy (TSX-INE, OTC-INGXF) ... learn more...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.

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