Posts filed under “Apprenticed Investor”

Your Ideology Is Killing Your Portfolio

It’s going to blow up the deficit, won’t create any jobs and will cause all sorts of other problems.”

A hedge-fund manager was lecturing me about the Jobs and Growth Tax Relief Reconciliation Act of 2003, better known as the Bush tax cuts. I had been suggesting that this fund close its short positions on technology stocks, and move to a more constructive equity posture. I was getting nowhere.

The fund manager, active in New York Democratic politics, couldn’t see past the policy issues involved. As long as George W. Bush was the U.S. president, this manager’s bias was against long positions. But as an astute market observer noted at the time, “Give me a trillion dollars, and I’ll throw you one hell of a party.”

How did missing that party work out for him? From the pre-Iraq war lows, U.S. markets rallied 96 percent during the next four years. Chalk up another bad investment decision to political bias, emotional involvement and lack of objectivity.

Before Republicans chuckle too hard . . . Continues here

Category: Apprenticed Investor, Investing, Politics, Psychology, Really, really bad calls

Mea Culpas: ‘Fresh mistakes, every year’

>   Its my annual mea culpas column for the Washington Post Business Section column. Here’s an excerpt from the column: “Once again, it is the time of year when I look back at the various investing, trading and other mistakes I’ve made. (Last year’s version is here; prior years can be found here). Why…Read More

Category: Apprenticed Investor, Philosophy

Google’s Nest Labs Acquisition is a Smart Move

Defense! Google’s Nest Labs acquisition is a smart move Barry Ritholtz Washington Post, January 26 2014     With the Super Bowl just a week away, the age-old question of whether offense or defense wins big games is at hand. “The best defense is a good offense,” goes the saying, with the Denver Broncos called…Read More

Category: Apprenticed Investor, M&A

Crashes, Corrections & Sentiment

On Monday, we saw a sell-off of more than 1 percent across major U.S. markets. Europe and Asia followed suit the next day. Judging by my e-mails I received, this was it, the beginning of the end, and “you unrepentant bulls are finally going to get what you deserved.” Except not quite yet. Tuesday and…Read More

Category: Apprenticed Investor, Markets, Trading

Your Best Investment Idea for the Next Decade

Yesterday, Business Insider posted a huge piece, wherein they ask various folks for their best idea for a decade. With the low key headlne, Wall Street’s Brightest Minds Reveal Their Best Investment Ideas For The Next Decade, here is how I responded: Financial planning: “As it turns out, that is an easy question: Our own…Read More

Category: Apprenticed Investor, Asset Allocation, Finance, Media

Pushback: Lessons from Gold’s Rise & Fall

Last week, we published a 2,500-word opus on what lessons could be learned from the rise and fall of gold. There was lots of feedback on the general concept and many of the specifics. By and large, the response was positive, with most of the pushback coming from those who were long gold or other…Read More

Category: Apprenticed Investor, Gold & Precious Metals

Bitten by the Gold Bug? Some Lessons

>   I did something different with my Sunday Washington Post Business Section this week. Starting with the 2,500 word long form discussion I wrote for Bloomberg, I simplified this and edited it down to half that length. The print version had the headline Bitten by the gold bug? You’ll do well to heed the…Read More

Category: Apprenticed Investor, Gold & Precious Metals

10 Lessons Learned from Gold’s Epic Rise & Fall

This morning, I have a massive 2500 word piece at Bloomberg looking at the rise and fall of Gold.

The key to the discussion are the 10 lessons that we all can takeaway from that cycle and the experiences of Gold investors. Hopefully, these will make us each better investors in the future.

Here is the intro:

“It has been quite the ride for gold: from under $500 an ounce a decade ago, to above $1,900 in 2011, gold gained more than 400 percent. Since its peak of ~$1,921.15 on Sept. 6, 2011, however, the shine is off the yellow metal. Gold plummeted 38 percent, recently breaking below $1,200. Yesterday’s close is within 5 percent of the lows, at $1,241.

If a 20 percent drop is described as a bear market, and a 30 percent fall is called a crash — what do we call gold’s almost 40 percent plummet?

This column is not an “I told-you-so” or an exercise in “Goldenfreude” (describing a “delight in gold bugs’ collective pain”). Rather, it is an attempt to learn some investing lessons from the epic rise and horrific fall of gold.

As an investor, I am a gold agnostic: When used properly, the metal is a potentially valuable tool in an investment arsenal. There are times when it makes for a profitable part of a portfolio, as in the 2000s. There are periods when it is a speculative and dangerous trade — such as the 2010s. There have also been decades when it does nothing, earning no return, generating no income, essentially dead weight to a portfolio, as in the 1980s and 1990s…”

 

Full column after the jump:

Read More

Category: Apprenticed Investor, Gold & Precious Metals

Financial Resolutions You Can Actually Keep

10 financial resolutions you can actually keep By Barry Ritholtz Washington Post, December 29, 2013     It’s that time of year, when many people resolve to be better: Gotta lose 20 pounds, stop smoking, start exercising. Human nature is such that come January, there will be a 20-minute wait for the elliptical machines in…Read More

Category: Apprenticed Investor, Asset Allocation, Investing, Psychology

Take Responsibility for Your Stock Losses

I wrote this a decade ago, and if you keep only one resolution this year, this is the one it should be. It will open a cascade of improvements for your finances . . .     Take Responsibility for Your Stock Losses Barry Ritholtz RealMoney.com, April 12, 2005     “He who blames others…Read More

Category: Apprenticed Investor, Trading