Diversifying Across Time

“Diversify across securities, across asset classes, across markets – and across time.” – Charley Ellis Reader emailbag: I have been saving for a number of years and have a large cash balance that I would like to invest in the market.  Should I spread my purchases out or wait for the market to fall and…

Picture Me Rolling 5 Year Graphs

After running  a rolling 5 year performance graph of high yield bonds this week I received a request from a reader that was interested in seeing similar charts for a handful of other asset classes.

Time For a Check-up on High Yield Bonds

“In this type of environment, superior returns are more likely to be earned through minimizing mistakes than through stretching for yield. Rather than behaving aggressively, the search for return should involve risk control, caution, discipline and selectivity.” – Howard Marks

Your Very Own Black Swan Strategy

“In the world of finance, the only black swans are the history that investors have not read.” – William Bernstein Following the 2007-09 financial crisis, many investors decided they needed insurance on their portfolio to protect against the possibility of another “black swan” event. It’s hard to believe that this was ever the case considering…

Why a Higher Dividend Yield Doesn’t Tell the Entire Story

“We never stretch for yield.” – Warren Buffett Annaly Capital Management (NLY) is a mortgage real estate investment trust company. They own real estate properties and pays out the majority of their earnings, around 90%, in the form of dividends to receive special tax treatment as a REIT. The share price as of year-end 2010…

The Four Abilities Every Investor Needs To Be Successful

“To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.” – Benjamin Graham William Bernstein is one of the foremost advocates for individual investors.  When he talks about the dynamics of investing, I pay attention to what he says and most of the time I…

A Roth IRA for the Baby?

“Owning stocks is like having children – don’t get involved with more than you can handle.” – Peter Lynch “When you have children, you spend a lot of time with people you never would have chosen to spend time with, not in a million years.” – Louis CK