THE HAMSTER DIGEST 2018-11-11

THE HAMSTER DIGEST 2018-11-11

Here’s a digest of some of my favourite financial independence or personal finance related blog posts that I came across over the past week or so: Home Loan Gymnastics – How Bendy Is Your Bank? http://www.stealthywealth.co.za/2018/11/home-loan-gymnastics-how-bendy-is-your.html Stealthy Wealth wrote an interesting post about the major banks in South Africa’s eagerness (or lack thereof) to reduce one’s bond interest rate if you ask them nicely.  Very informative read!   How I Hacked The Happiness Curve https://retireby40.org/how-i-hacked-the-happiness-curve/ Joe shares how he hacked the…

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Beware the Hedonic Treadmill – a major obstacle to your happiness

Beware the Hedonic Treadmill – a major obstacle to your happiness

Have you ever noticed that even though some people who seem to have everything one could hope for, don’t seem happy?  There’s an interesting theory that tries to explain why.  It is called “hedonic adaptation“, also refered to as “the hedonic treadmill“. The hedonic treadmill describes the tendency of people to return to their usual level of happiness after major events in their lives (both positive and negative) Examples of Hedonic Adaptation People who win the lottery tend to return to their…

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The Hamster Digest 2018-09-16

The Hamster Digest 2018-09-16

Here’s a digest of some of my favourite financial independence or personal finance related blog posts that I came across over the past week or so: Where’s your money? http://www.stealthywealth.co.za/2018/09/wheres-your-money.html Stealthy Wealth wrote a really nice post about diversification and took a closer look at his own portfolio’s level of diversification and where exactly his portfolio is invested in.  Kinda ties in well with the post I wrote a while ago about diversification:  The DIY investor’s guide to diversification The often…

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The DIY investor’s guide to understanding diversification

The DIY investor’s guide to understanding diversification

Since day one of trying my hand at hands-on investing, I’ve been coming across the topic of diversification a lot.  And every time I’m in a discussion with someone about investing – and the concept of diversification is brought up – it seems that most people don’t really know what it means.  So here’s a short guide I’ve put together to help myself understand it better.  And through sharing, hopefully some of you can also gain some knowledge from it….

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Your bank statement reflects what you value

Your bank statement reflects what you value

Tell me what you value and I might believe you, but show me your calendar and your bank statement, and I’ll show you what you really value – Peter Drucker Can you remember the last time you walked into someone’s house for the first time who you didn’t know or didn’t know well?  You began to look around inside.  The pictures on the wall, the furniture, the decor, the books on the shelves and magazines on the coffee table.  These…

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Why I love Dollar Cost Averaging (in up AND down markets)

Why I love Dollar Cost Averaging (in up AND down markets)

I’m fairly new to the world of hands-on investing.  I’ve been contributing regularly to my RA and company Pension-fund over the years but I only recently started delving into the nuts and bolts of investing.  I started reading a lot of books, articles and blog posts about personal finance, money and investing and learned a lot!  One important concept I came across that I find crucial to understand for any hands-on investor, is what is called Dollar Cost Averaging (DCA), or as…

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Beware of Myopic Loss Aversion

Beware of Myopic Loss Aversion

I just finished “The Little Book of Behavioral Investing” by James Montier.  It is an amazing book with lots of great information.  Highly recommended!  One concept he touched on in the book is termed “Myopic Loss Aversion” which immediately caught my attention, so I want to delve into it a little in this post.   When it comes to investing, perfectly rational people sometimes make very irrational investment decisions, caused by numerous biases, but the most common of all is…

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What are you willing to suffer for?

What are you willing to suffer for?

We hear this question a lot:  “What do you want out of life?” Most people answer with something like: “I want to be happy”, “I want to be rich”, “I want a great career”, “I want to be famous”, “I want to be successful”, “I want to be a great pianist” and so on. The problem is that this is the wrong question to ask. Rather, we should be asking the question: “What are you willing to suffer for?” At…

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The Diderot Effect

The Diderot Effect

Time for a quick history lesson, with a good little life lesson (who said we never learn from history?) The 18th century French writer named Denis Diderot once received a lovely gift: a beautiful scarlet dressing gown.  He immediately threw his old gown away. He wouldn’t wear it ever again he thought, so why keep it? Of course, he needed to make a few extra purchases to accommodate his new gown.  If one of his books was covered with dust, he’d…

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Opportunity cost, what is it and why should I care?

Opportunity cost, what is it and why should I care?

Over this past Easter weekend we as a family went on a 4×4 eco-trip through the Kruger National Park.  It was an amazing experience! What wasn’t so amazing was the fact that, the night before entering the park while we stayed over at a guest house, my wife wanted to cool her feet off in the guest house swimming pool, but slipped and in the process dropped her iPhone in the water. Swimming Pool : 1  iPhone : 0 After…

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