“Value investors are not concerned with getting rich tomorrow. People who want to get rich quickly, will not get rich at all. There is nothing wrong with getting rich slowly.” – Warren Buffett

“It seems like the higher mathematics with more false precision should help you but it doesn’t. They teach that in business schools because, well, they’ve got to do something.” – Charlie Munger I received a number of comments on my Do You Need Commodities in Your Portfolio? post from fans of investing in commodities. Many…

Investors have had plenty to deal with since 1999: the technology bust, a real estate crash, failing banks, a weak economy, the near-collapse of the European Union, endless doom and gloom talk of “geopolitical risk” and the usual market fluctuations. Yet from 1999 to 2013, the Wilshire Small Cap Value Index was still up a…

“Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day.” — Charlie Munger Following The Four Abilities Every Investor Needs to be Successful post from a few weeks ago, I received a number of reader requests for book recommendations to learn more about financial market history and…

“Early adopters reap the initial high returns and low correlations of a novel asset class; then one or more multiple academic and trade journal articles will describe those benefits, always accompanied by plump, curvaceous two-dimensional mean-variance plots. Last come Readers Digest versions in the mass media.” – William Bernstein The common refrain from many financial…

“Since the basic game is so favorable, Charlie and I believe it’s a terrible mistake to try to dance in and out of it based upon the turn of tarot cards, the predictions of “experts,” or the ebb and flow of business activity. The risks of being out of the game are huge compared to…

“Rebalancing, or the process of restoring a portfolio to its original composition, is integral to the winning investment strategy. It requires you to buy what has done relatively poorly (at relatively low valuations) and sell what has done relatively well (at relatively high valuations).” – Larry Swedroe Larry Swedroe has an interesting strategy for rebalancing…

“Too many investors cling to attribute-based approaches and wring their hands when the market doesn’t conform to what they think it should do.” – Michael Mauboussin The biggest ongoing debate by the intellectual crowd at the moment is on profit margins. Pseudonymous blogger Jesse Livermore calls it ‘The epicenter of the valuation debate.’ In one…

“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…

“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…