Posts filed under “Apprenticed Investor”

Congratulations, you were drafted! Prepare to go broke.

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My Sunday Washington Post Business Section column is out. This morning, we look at how often pro athletes manage to go financially bust.

The print version had the headline Congratulations, you were drafted! Prepare to go broke!, while the online version is merely Professional athletes need to learn to keep their finances in good shape.

In the column, I detail why pros go broke (Youth and inexperience play a large part in it) as well as what they can do to avoid the most common fate of the pro athlete.

Here’s an excerpt from the column:

“The data on professional athletes are startling: Shortly after they retire, nearly four of five NFL players are bankrupt or under financial stress, according to Sports Illustrated. Joblessness and divorce are the main reasons. It’s marginally better in the National Basketball Association, where after retirement nearly two of three players are broke within five years.

Why does this happen? There are lessons here even for those investors who cannot hit a jump shot. Let’s look at the reasons so many athletes go broke.”

I really like what the Post did in the dead tree version of the paper — nice art work, including a good table:
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click for larger version

athlete bust


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Source:
Professional athletes need to learn to keep their finances in good shape
Barry Ritholtz
Washington Post, June 1 2014  
http://wapo.st/1nT4d4L

Category: Apprenticed Investor, Foreclosures, Investing, Really, really bad calls

Smart Investing is Reality-Based

Robert P. Seawright is the Chief Investment & Information Officer for Madison Avenue Securities, a boutique broker-dealer and investment advisory firm headquartered in San Diego, California. Bob is also a columnist for Research magazine, a Contributing Editor at Portfolioist as well as a contributor to the Financial Times, The Big Picture, The Wall Street Journal’s…Read More

Category: Apprenticed Investor, Investing

My Unusual Career Path in Finance

I have been working in finance for two decades. Along with achieving whatever success and (internet) fame comes regular inquiries from the young’uns seeking advice on how to break into the field. On occasion, I have shared whatever small insights I might have with them. Along those lines, Tom Brakke of the blog The Research…Read More

Category: Apprenticed Investor, Markets, Philosophy

What ‘This Time It’s Different’ Really Means

Investors must recognize what ‘this time it’s different’ really means Barry Ritholtz, Washington Post May 18, 2014     “The four most expensive words in investing are: ‘This time it’s different.’” So said Sir John Templeton, the legendary investor and mutual fund pioneer. The phrase contains tremendous wisdom, but only if you truly understand what…Read More

Category: Apprenticed Investor, Investing, Psychology

When is ‘this time’ really different?

    My Sunday Washington Post Business Section column is out. This morning, we look at a famous aphorism from Sir John Templeton. The print version has the hedder When is ‘this time’ really different? while the online version used the fuller Investors must recognize what ‘this time it’s different’ really means. The column tries…Read More

Category: Apprenticed Investor, Psychology, Quantitative

Pay close attention to what’s motivating market commentary

Pay close attention to what’s motivating market commentary Barry Ritholtz Washington Post, May 4, 2014     Have you ever heard a talking head or commentator say something and immediately wonder, “Why did he say that?” I don’t mean the Donald Sterling kind of stupidity, but rather, specific comments on the economy or the markets…Read More

Category: Apprenticed Investor, Financial Press, Investing

>   My Sunday Washington Post Business Section column is out. This morning, we look at the motivations of various market commentators. The study of investor bias and psychology has long fascinated me. This column revisits the subject of different roles investors must play in order to confront these problems. I tangentially mentioned this in…Read More

Category: Apprenticed Investor, Financial Press, Investing, Psychology

If Stocks Go Up, Must They Always Come Down?

What’s gone up won’t always come down Barry Ritholtz Washington Post, April 20 2014     U.S. equity markets made substantial gains last year. The Standard & Poor’s 500-stock index, the traditional benchmark for equities, was up 29.6 percent. Add in dividends, and it’s well over 30 percent. Technology and small-cap stocks did even better, with…Read More

Category: Apprenticed Investor, Investing, Technical Analysis, Valuation

What Goes Up, Must Come Down?

>   My Sunday Washington Post Business Section column is out. This morning, we look at What’s gone up won’t always come down. The print version had the headline You might think the markets are ready for a breather after last year’s gains, but . . . Here’s an excerpt from the column: “You might think…Read More

Category: Apprenticed Investor

Stop Looking for “the Story” Why Markets Are Falling

Whenever we see any sort of disruption in markets an explanation usually follows. The headlines will explain that “Markets are going up/down because of this good/bad thing.” News anchors will solemnly intone why the volatility is significant and what it means for one thing or another. None of these casual explanations can withstand close examination….Read More

Category: Apprenticed Investor, Investing, Psychology