Being a Sports Fan and the Cycle of Fear, Hope & Greed

“Why does this matter to me so much? Isn’t it fundamentally stupid that this matters so much?” – Bill Simmons on being a sports fan I’ve spent a lot of time learning, thinking and writing about the inherent behavioral biases that we humans all seem to share. The greatest investors of all-time don’t do things…

Investing in Stocks is Counterintuitive

“Many things about investing are counterintuitive. Low-quality assets can be safer than high-quality assets. Things get richer as they become more highly respected (and thus appreciate). There can be more risk in thinking you know something than in accepting that you don’t.” – Howard Marks “Investing is the only business I know that when things…

What’s Wrong With This Retirement Plan?

“The more complexity there is in the market, the more that something simpler stands out.” – John Maeda Fidelity Investments, the behemoth mutual fund company that oversees nearly $4 trillion in assets, has gotten some bad press in the past few months. Fidelity manages many 401(k) retirement plans for employers across the country.  One of…

Dilbert Creator: Think Systems over Goals

“Your dreams of creating a dry-cleaning empire won’t be helped by knowing that Thomas Edison liked to take naps.” – Scott Adams Scott Adams, the creator of the Dilbert comic strip, had a great piece in the Wall Street Journal last weekend which outlined some of his career advice based on his experience with failure…

11 Important Things from Howard Marks

“The markets are a classroom where lessons are taught every day. The keys to investment success lie in observing and learning.” – Howard Marks I just finished The Most Important Thing by legendary investor Howard Marks of Oaktree Capital. Marks is one of the greatest value investors of all-time and the book cover even comes…

Can the Weather Move The Stock Market?

“Our natural reaction is to sell after bad news and buy when news is good, thus indulging our fear and our greed. It’s an impossible strategy.” – Carl Richards   A recent study looked into the effects that the weather played on the trading patterns of institutional investors and how this influenced the overall stock…

What Makes Amazon.com So Great

Business Week has an awesome cover story on Amazon.com this week and its founder, Jeff Bezos. Here’s a story that lets you know what kind of company he is running:

US Stocks Continue to Dominate 2013

“The future ain’t what it used to be.” – Yogi Berra Despite a correction in the works because of those lovely politicians in DC, 2013 continues to be a great year for US stocks. The S&P 500 was up nearly 20% through the end of September.

The Common Sense Investment Policy Statement

“Having a plan is important because it’s impossible to make rational decisions about investments without one.” – Larry Swedroe An investment policy statement (IPS) is something every investor needs to be able to achieve their long-term financial goals.  Without one you are basically a rudderless ship drifting across a vast ocean.  You’ll be lost. An…