Posts filed under “Investing”
This was one of my favorite pieces of his:
The Ten Harsh Financial Commandments
I) You will not buy low or sell high.
II) You will cut your winners and let your losers run.
III) You will wish you owned more of what’s going up and less of what’s going down.
IV) You will be fearful when others are fearful.
V) You will fight the trend.
VI) You will not buy when there is blood in the streets.
VII) You will spend too much time worrying about low probability outcomes.
VII) You will invest for the long-term, or until we get a ten percent correction, whichever comes first.
IX) You will go broke taking small profits.
X) You will not just sit there, you’ll do something.
If you’re not following the Irrelevant Investor, you are missing all manner of insightful musings related to his research.
On June 30th, our investment firm will be holding its Q2 client conference call. Because we’ve got a clientele that spans the entire country, we’ve found that holding a call during which we address important topics and take questions from our investors is a really effective way to communicate. In the weeks leading up to…Read More
Markets around the world start the week bracing for trouble as Greece spirals further into crisis. Can the country avoid a full-blown default? Will there be a Grexit? Will it stay in the euro zone and keep the single currency? It all looks like an unknowable gamble. Which leads us to this question: How big a challenge is it…Read More
My Sunday Washington Post Business Section column is out. This morning, we look at the work of Richard Thaler, the father of Behavioral Economics. His findings are very applicable to investors. The print version had the full headline You’re only human: How it hurts your investments; online its You’re only human: An economist explains how…Read More
Most investors are (or at least should be) familiar with the concept of “Home Country Bias” — the natural tendency to be more familiar and comfortable with public companies in your home country. Investors everywhere consistently display this trait, which is in direct conflict with the basic principles of international diversification. A 2014 report by Vanguard found…Read More
Source: NBER, Political Calculations The U.S. now has half as many publicly listed companies trading on its exchanges as it did at the peak in 1996. As the chart below shows, listed companies reached a high of 7,322. That number today is down almost by half to 3,700 and is more than 1,000 lower than in…Read More
The new “World Wealth Report” for 2015 was released last week fromCap Gemini and RBC Wealth Management. The focus is on the population of high net worth individuals, or HNWIs as the report calls them. The report, based on a survey of more than 5,100 wealthy people in 23 major markets, is packed with fascinating data and…Read More
Jonathan Berk turns the efficient market hypothesis, which popularized the belief that mutual fund managers were “monkey investors” who consistently perform worse than the overall market, on its head to prove that mutual fund managers are in fact highly skilled investors. And he proposes a new way to accurately measure a mutual fund manager’s…Read More