Money Superpower
Financial Independence

What Is Your Money Superpower?

The absence of role models has long been one of the biggest obstacles to building wealth. After all, the easiest way to become successful is to find someone who is already successful – and replicate what they have done. However, money isn’t like fitness […]

Investing lessons
Investing

Five Investing Lessons From 2020

It may not seem like it, but as of today, we are just four weeks away from Christmas. One of the most eventful years of the past few decades is beginning the countdown toward its logical conclusion. It’s fair to say that 2020 has […]

A Million Is Not Enough
Financial Independence

When A Million Is Not Enough

On Saturday morning, I woke up to an email from a long-time reader of this blog. To preserve anonymity, let’s call him Carl. Carl sent me a link to this story from the Sunday Times and asked for my views. I was still in […]

Tale of two markets
Stock Market

A Tale Of Two Markets

Back in February, when a very prescient colleague of mine was busy liquidating his equity portfolio, a good friend of mine was going in the opposite direction. He and I had discussed investing in the past – and he had fully signed on to […]

Proceed with caution
Investing

Covid Vaccine? Don’t Get Too Excited

Yesterday’s news of the Pfizer Covid vaccine may well be the emotional highlight of 2020. It certainly put a big smile on my face, notwithstanding an otherwise challenging day at work. A triumph of good over evil. Of human ingenuity over a nasty, deadly […]

Destruction of value
Investing

Destruction of Value

About ten years ago, I attended an investment conference that brought together students and faculty from a number of MBA programs on the East Coast. Eugene Fama was one of the keynote speakers at the event. This was a few years before he won […]

Financial Independence

A Pre-Mortem On Your Life

One of the most enduring lessons I’ve taken away from my MBA degree is the concept of a “pre-mortem”. Applied in a managerial / finance context, the idea is quite simple. Let’s say you are about to kick off a big project. It can […]

No return
Investing

Irreversible

After seven and a half months of working from home, I have finally had enough. Driven by a desire to insert a bit more separation between work and life, I put on my mask, boarded the Jubilee line, and headed for the office. To […]

Stock market - top secret
Stock Market

How To Hack The Stock Market

Want to learn a guaranteed way to never, ever lose money in the stock market? Then today’s post is for you. Those who have read about the magic money machine will remember this graph: It’s a good representation of the random walk the stock […]

Stock Market

I Told You So

Back in late February (which now feels like a lifetime ago), a colleague and I were chatting about the stock market. The S&P had just gone down through the 3,000 mark. The said colleague, who happens to be a very thoughtful person, mentioned that […]

Guaranteed way to get rich
Financial Independence

A Guaranteed Way To Get Rich

Back in my teenage days, the only real way to get some quality information was to shlep over to the library. Yes, we did have internet back then (I’m not THAT old), but it was still nascent, slow, and frankly, there wasn’t much quality […]

Stock Market

A Magic Money Making Machine

If one were to distill the most contentious question in stock market investing, it would boil down to this: “What is a reasonable expectation for stock market returns going forward?” Your take on the question above impacts a multitude of things. First and foremost, […]

Investing

Back In Action

You may have noticed that as of last week, we are back to regularly scheduled, twice-weekly programming here at Banker On Fire. Two weeks in Spain flew by. It wasn’t a relaxing holiday by a stretch – a toddler, an infant, and a stream […]

Stock market fear
Stock Market

How Bad Can A Stock Market Downturn Get?

Not too long ago, one of my readers posed an interesting question in the comments section of this blog. Essentially, it boiled down to this: I am using the stock market for long-term wealth building and my goal would be to FIRE, hopefully, within […]

Pensions

Zeroing In On Your Workplace Pension Returns

When it comes to stock market investing, it’s pretty easy to figure out your expected returns. This is especially true if you are young and hold a 100% equity portfolio. Simply take the expected nominal long-term return. Historically, it has been somewhere in the […]

Loving Active Investors
Investing

Falling In Love With Active Investing

In the personal finance community, you will struggle to find a set of people more vehemently disliked than active money managers. Yours truly certainly shares the sentiment. There are exceptions, of course. Star managers who haven’t (yet) fallen from grace. The rare species who […]

Financial Independence

How To Lose Your Job In 10 Years

Another horrible commute. A highly unpleasant interaction with a passive-aggressive colleague. A manager that seems to pile on more work every day – and yet isn’t nearly so generous with the recognition. And the work itself. What (hopefully) seemed exciting early on has now […]

Real estate riches
Real Estate

How People Get Rich With Real Estate

A while ago, Peter Kim (a.k.a. Passive Income MD) published a post titled “Buy one property per year and retire early”, which I found to be fascinating reading. Somewhat unfairly, Peter took a bit of flack in the comments for making assumptions that some […]

Smarter than the stock market
Investing

Who Is Smarter Than The Stock Market?

“Objects in the rear-view mirror may appear closer than they are”. Right now, the opposite is true. It feels like a lifetime ago – but it has only been 11 weeks since we were trying to find a way forward in the midst of […]

Investing

The Future Is Tech… Or Is It?

One possible explanation for the recent divergence in stock market performance vis-à-vis the broader economy is the performance of the tech sector. Microsoft, Apple, Amazon, Alphabet, and Facebook now comprise ~22% of the S&P 500 index. It’s no wonder that the stock market held […]

Losing the plot
Investing

Losing The Plot

“It’s all over. They’ve gone and lost it.” This was just one of the comments that popped up in my Facebook feed on March 15th, the day the Fed cut interest rates to zero and launched a massive stimulus program. “They have nothing left […]