Umbhali Oqavile

Diversification is key This is the conventional wisdom, spread your investments to reduce risk. No doubt, it is a proven working formula. Few people are interested in placing all their eggs in one basket. But, Warren Buffett says those who diversify has no clue what they are doing. I am not in a position to argue with the Oracle of Omaha, he has made billions of dollars doing what he know. Diworsification Too much of something is a problem, just as too much diversification can defeat the purpose of diversification. Obviously, you are chasing the noble goal of minimising risk, while you are it, you are thinning out your investments! In the process, the risk and the returns just cancel each other out, making the whole process a pointless exercise. Not all is lost though, if you want to own too many stocks, just buy an ETF Bro . An exchange traded fund (ETF) is a diversified tradable security, some of the ETFs are even less volatile than individual stocks. Even there, be careful not to b

Is Aveng a good investment? I did something bad, I broke my rules and dived into Aveng's financial statements. It was for the Channel's viewers and subscribers, so it was done out of altruism. I do not do fundamental analysis, although what I did cannot be fully described as fundamental analysis. Note that I have already made a video of Aveng analysis using technical analysis. I did this to help the people who are supporting the YouTube Channel; most of those people are interested in Aveng, some of them know why whereas others do not, they bought the hype. What is in the financials? I used the company's 2021 interim results for the analysis. I then compared those with their most recent trading statement . Below is a summary of the interim results. As you can see, it is green everywhere. I love the growth in revenue, it means that there is money coming into the business bank accounts. Another great thing is the net cash, I do not know what it means but it good to see the

This was supposed to be a Facebook Post, but who does that when they have not published anything in days. Today I want to touch on some limitations of using technical analysis exclusively for trading or investing. I have been caught off guard many times, thanks to risk management, I manage to swim out of those situations. This list is by no means exhaustive, just what I can remember and what I have experienced. You can buy a company that is about to delist. I believe that insider trading is rife, and you cannot convince me otherwise. Typically a company can make an offer to buyout existing shareholders, more often than not at a higher price than the trading price. Some insiders may want to load up, the retail trader will start to see irregular trade volumes, and jump in if it fits their strategy. The price can go up, making really good profit. Until one day you wake up to a letter telling you that your days as the company shareholder are numbered. Well, if the offer is higher than my p