A few weeks ago I took part in a webcast with MarketWatch on long-term investing that was partly spurred on by a post I wrote about my idea for a TV show about investing. MarketsWatch’s Victor Reklaitis ran the show while I was joined by Tim Strauts from Morningstar and Chuck Jaffe of MarketWatch to…
The First Mover Advantage
“Diversifying is easy; doing so early is difficult.” – William Bernstein
The Best & Worst Part About Investing in Emerging Markets
“The wonderful thing about emerging markets is that they can get terribly cheap from time to time.” – William Bernstein The quilt above, courtesy of the Novel Investor, shows the annual performance numbers for the largest emerging market countries going back to the year 2000. Like any asset allocation quilt, it looks like complete chaos…
Not All Markets Have Recovered From the Financial Crisis
Based on the MSCI World Index, the U.S. stock market makes up over 50% of global equity markets. We constantly hear updates about the Dow Jones, S&P 500 and even Russell 2000, but rarely pay attention to foreign markets. This home bias causes many investors to overweight U.S. stocks in their portfolio. As everyone debates the current…
A Role Reversal For Stocks and Bonds
“Volatility can prey on investors’ emotions, reducing the probability they’ll do the right thing.” – Howard Marks
Size is the Enemy of Performance
“Prices fluctuate more than values – so therein lies opportunity.” – Joel Greenblatt I saw Joel Greenblatt speak at the Morningstar Conference earlier this summer. He has the uncanny ability to explain the markets and his investment process in a manner than everyone can understand which is not an easy thing to do for many…
Asking The Wrong Question
“A goal without a plan is just a wish.” – Antoine de Saint-Exupery This was the headline and first few sentences from an AP story last weekend: Time to Ditch Rising Stocks, or Stick With Them? Is it time to cash out of stocks? The market has nearly tripled in a little over five years, and…
Blurred Lines Between Active and Passive Investing
The trend towards passive investments continues to gain steam as more investors are opting for lower cost fund options. See this chart from Morningstar via Victor Reklaitis of MarketWatch:
Even Bull Markets Aren’t Easy
“Risk, then, comes in two flavors: “shallow risk,” a loss of real capital that recovers relatively quickly, say within several years; and “deep risk,” a permanent loss of real capital.” – William Bernstein It’s been a long time since the S&P 500 has experienced a double-digit loss. The last one ended in October of 2011,…
Charlie Munger’s Investing Principles
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger Warren Buffett famously ran a partnership for a small group of investors before turning Berkshire Hathaway into his investment vehicle of choice. He produced extraordinary results for himself and his investors. Many don’t realize this but…
