Risks to consider when investing in stocks

When you start investing in the stock market for the first time, usually your intuition is that the risk is in deprecation of the stock's value. Say you buy Alphabet at $2,451, will the price be more or less the next month, or in a year's time. This however is only a very narrow view of the risk.

This article will be a quick overview of the kind of things you should think about when gauging the risk of a stock. If you think there's something missing from the list, please drop me a line at thewealthyfinn@gmail.com or on twitter @thewealthyfinn.

So what risks are there? Here are some common ones to look out for:

2021 recap - a HUGE year for me

The year 2021 was thrilling in so many ways. Everything went up, up, up (until it didn't). It was the best year financially so far in my whole life. Now, 2022 has been totally different and mostly wiped out already the gains I got in the previous year, but let's not focus on that right now. I'll make this a positive post about 2021 and I'll sulk on inflation fears, stock market crashes and WW3 later, ok?

October 2021 update: I'm over the 700,000 € line!

Like I mentioned in my last update, I crossed another 100k€ mark this month, yay! 🎉 Will I make it to 1,000,000 € by the time I am 40? Can you become a millionaire by 40? Stick around to find out.

September 2021 update: Less than 40% left to double comma

What's been happening with me lately? Quite a bit actually.

  1. Breached 600k in net worth - and then some
  2. I started a position in Reinvest24.
  3. Sat back and let my P2P portfolio do its job.
  4. Got a raise at work.
  5. Have made some stellar moves on the stock market.

Continue reading to learn more 😊

How will the stock market crash and how to prepare for it

There's always a crash coming. Ever since 2013 they've been calling it, just around the corner. I was bearish before the corona crash, but I was wrong. What was I wrong about?

The magnitude of quantitative easing central banks were willing to do.

June 2021 update: earnings, expenses and wealth

I've been looking at my finances and this year looks just amazing - again. I can't wait to tell you about it! Here it goes:

April 2021 update: expenses, income and wealth

If I don't manage my money monthly, I'll just be surprised at the end of the year at how much I spent. And unless I track how much I'm making, I won't be able to re-allocate my assets.

For example, it looks like my stock portfolio gained 44,800€ between February and March. That's insane. But then again, I've taken on a ton of risk with growth stocks and it paid off.

Have a closer look and see how it's progressing.

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