Posts filed under “Apprenticed Investor”

Time — Not Timing — is Key to Investing Success

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My Sunday Washington Post Business Section column is out. As a follow up to our previous discussion of the World’s Greatest Trader®, this  morning, we look at the Worlds Greatest (and Worst) Market Timer®.

As we did last time out, we assumed magical powers for our theoretical trader, giving him the ability to bottom tick the market. Surprises aplenty follow.

Here’s an excerpt from the column:

“Over the past month, we looked at how you would have fared if you were an uncanny stock picker who consistently beat the market by 30 percent or so (What if You Were the World’s Greatest Trader® ? and World’s Greatest Trader Revisited).  As it turns out, capital gains taxes and other expenses take a giant bite. Even a very successful active trader barely keeps up with the long-term passive indexer.

This week, we consider: What if you were the World’s Greatest Market Timer?
Imagine: You, the individual investor, have an uncanny skill at timing markets and picking the lows. Your prescience allows you to buy near the bottom of every major crash. Anytime the market has a substantial drop, you manage to make a purchase of broad indexes at advantageous prices. Similar to the World’s Greatest Trader, you set up an online account, and then you are off to the races, timing markets with the best of them.

How would you imagine a trader with these skills would do?”

The answer turns out to be rather surprising . . .

 

Source:
Time, not timing, is key to investing success
Barry Ritholtz
Washington Post, August 24, 2014  
http://wapo.st/1rt1jI8

Category: Apprenticed Investor, Asset Allocation, Investing

Why Long-Term Investors Beat Short-Term Traders

No matter what, the long-term investor comes out ahead of the short-term trader Barry Ritholtz Washington Post, August 10, 2014   Last time, we looked at why traders are at an almost insurmountable disadvantage against investors due to short-term capital gains taxes. Many of you wrote in to note several factors that would have allowed…Read More

Category: Apprenticed Investor, Investing, Trading

Another look: A short-term trader won’t beat long-term investor

  My Sunday Washington Post Business Section column is out. This morning, we revisit the advantages the long term passive indexer has versus short term active traders. The print version had the full headline The trader can narrow the gap but won’t win, while online, it was called No matter what, the long-term investor comes out ahead…Read More

Category: Apprenticed Investor, Investing, Trading

What if You Were the World’s Greatest Trader® ?

So you’re the world’s greatest trader®? Taxes will fix that. Barry Ritholtz Washington Post, July 27 2014     Imagine the following: You, the investor, believe you have an uncanny skill at picking stocks. You set up an online trading account and begin to buy and sell. As it turns out, you are quite good….Read More

Category: Apprenticed Investor, Investing, Taxes and Policy

Worst Investment Ideas of 2014 (so far)

    My Sunday Washington Post Business Section column is out. This morning, we look at the worst investing ideas of the year. The print version had the full headline Where dumb money goes; the online version is the worst investing ideas this year. Here’s an excerpt from the column: “Here is the first half of…Read More

Category: Apprenticed Investor, Really, really bad calls

How to build your own financial dream team

Curate your personal investment resources Barry Ritholtz Washington Post, June, 15, 2014   One question I get all the time from investors is “How do you sift through all of the news, data and media?” thrown at investors each day. I use some time-saving methods to quickly plow through a huge volume of material. If…Read More

Category: Apprenticed Investor, Investing

Curate Your Personal Investment Resources

> My Sunday Washington Post Business Section column is out. This morning, we look at how to build a personal online research team. The print version had the full headline How to build your own financial dream team, while the online version when with Curate your personal investment resources. The goal here is to take advantage…Read More

Category: Apprenticed Investor

Congratulations, You Were Drafted. Prepare To Go Broke.

Professional athletes need to learn to keep their finances in good shape Barry Ritholtz, Washington Post, May 30, 2014     Michael Sam made sports history when the St. Louis Rams made him the first openly gay player to be drafted into the National Football League. If he is smart, he can join another elite…Read More

Category: Apprenticed Investor, Investing, Sports

Congratulations, you were drafted! Prepare to go broke.

>   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…Read More

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