Herman Ye

It goes without saying, Warren Buffet is a legendary investor. Even if you know nothing about investing, you know he's synonymous with success. A true household name. His track record speaks for itself. From 1965-2018, he led Berkshire Hathaway to annualized returns of ~ 20% . In contrast, the S&P 500 had average annual returns of  ~ 9% over this time. Beating the market by twofold is impressive, to do it for decades is unheard of. How Does He Do It? Buffet is a value investor. He spends a lot of time analyzing fundamentals, only investing in companies that meet his rigorous standards. Should I Pick Stocks Like Warren?  No. Despite his success, Buffet is a huge advocate of index investing. Why? Fees, Fees, Fees "A low-cost fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth."  Fees devour returns. I...

It's jarring to see your portfolio drop 30% in a few days. No matter how experienced an investor you are, nobody likes to lose money. In times like this, there's a lot of noise out there. Ranging from good advice to outright scams. No one can predict the future, but markets have been through the wringer. From famines to world wars, financial collapses to political scandals. Odds are we'll get through this too. Things will bounce back. Until then, here's a couple things you can do to weather the storm. Social Media Distancing A lot of folks are stuck at home, bored. It's easy to lose your day to endless scrolling. Constantly checking your feed isn't making anything better. It only adds to your anxiety and stress. Check in to stay responsibly informed and stop there. This will reduce your likelihood of getting emotional. Emotional trading is never good. Stick to the plan. Stop Checking Your Account The move to digital banking is great for investors. Fi...

You're new to investing, have done your homework and is ready to get started. You find a discount brokerage offering commission-free ETF purchases . Perfect! You'll save a ton on fees. You enter in your first order and to your dismay, a fee! ECN? What is this? I thought there were no fees? Commission-Free Doesn't Mean Free? There's a misconception that commission-free trading equals to no-fee trading. A commission  is the cost of facilitating and executing a trade. Commission-free still leaves room for other charges, such as foreign exchange fees and the lesser-known ECN fees. ECN Fee?  ECN stands for Electronic Communication Network . ECNs are intermediaries that match brokers to stock exchanges. ECNs charge on a per-share basis for their services, typically fractions of a penny. Some brokers pass these fees down to their clients, others just absorb them. When Do They Apply? ECN fees only apply to trades that "removes liquidity". A trade that re...

ETFs are widely acclaimed for their low fees. Equity ETFs charge an average MER of 0.40% , whereas equity mutual funds charge  1.5% - 2% . Many popular ETFs are even cheaper.  VOO allows you to own the entire  S&P 500 for only 0.03% . Talk about a bargain. How are ETFs able to charge so little?

Most places charge 2% to convert currency. If you're a Canadian investor with Canadian Dollars, purchasing US stocks can be costly. Luckily there's a solution.

Recently, the markets have been incredibly volatile. With stock prices moving violently up and down (mostly down) without pause. On any given day, a 10% change in either direction. This is a time of great uncertainty and investors hate uncertainty . Many will panic and sell, retreating to the safety of cash. With more sellers than buyers, there's a downward pressure on prices. When prices fall, more investors panic and start selling too. This vicious cycle can lead to disaster. To prevent this, or at least to soften the landing, regulators have controls in place. Taking A Break A  circuit breaker  is a temporary pause in trading, enforced during wild market conditions. The idea is to give traders a chance to take a step back so they can make better, more informed decisions. Circuit breakers apply to broad market indices as well as individual securities. Market Level Circuit Breakers Circuit breakers are trigged at a predetermined levels. The S&P 500 for ...

In the midst of market downturns, there's always a huge push for central banks to cut interest rates . Today we'll break down how interest rates work and their impact on the economy.

We've talked a lot about stocks, today let's take a look at the safer side of portfolios and talk about the value of bonds.

With doomsday forecasts dominating the headlines, let's take a step back to understand what "market corrections" are so we can better grasp what's going on.

When buying stocks, there are two main type of orders:  Market Orders and Limit Orders . Let's discuss what these are and which is best for most investors.