“Diversification is always working; sometimes you’ll like the results and sometimes you won’t.” – Larry Swedroe Traders get to use cool sayings like, “let your winners run but cut your losers quickly.” Long-term investors need to periodically do the exact opposite and sell their winners to buy their losers. Mean reversion rests on the premise of…
The Most Overused Analogies in Finance
I love using analogies to explain complex ideas. It’s a great way to make boring or difficult topics more relatable and easily understood. But when you read as much financial information as I do you start to see some repetition in the analogies used to describe the markets and financial planning. I’m not saying most…
Time to Refinance Your Mortgage?
“Given the large percentage [of Americans] who never refinance, it’s really important for them to step back and determine whether there’s an opportunity for them to get this big benefit that’s potentially out there,” – Steve Deggendorf, Fannie Mae
Your Weekly Reminder of the Greatness of John Bogle & Vanguard
“It is high time for costs to be recognized as a crucial factor in determining the future returns that funds earn.” – John Bogle These are the Vanguard fund performance results against their peer group by category through December 31, 2013 over various time frames: You can see that Vanguard funds outperform the majority of…
How Spending Money Affects Happiness
“The business of life is the acquisition of memories. In the end, that’s all there is.” – Mr. Carson, Downton Abbey Money can’t buy happiness, but it can make you happier up to a certain point. By now most people have seen the studies that suggest $75,000 a year is the income threshold for happiness….
“Is This a Person I Want to Work With?”
“By working faithfully for eight hours a day you may eventually get to be boss and work twelve hours a day.” – Robert Frost
Don’t Let Stock Losses Turn You into a Day Trader
“Don’t do something; just stand there.” – Jack Bogle
The Mutual Fund Walking Dead
“You get what you don’t pay for.” – John Bogle
How Pete Carroll Used Less is More to Win the Super Bowl
“Understand that just as it is complicated to make things simple, it is simple to make things complicated as well.” – Anonymous
Yes, Size Matters
“Anyone who says that size does not hurt investment performance is selling. The highest rates of return I’ve ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It’s a huge structural advantage not to have a lot of money.” – Warren Buffett Yes, size…
