“Being passive doesn’t mean doing nothing.” – Larry Swedroe One of the first decisions you need to make in the process of building an investment portfolio is whether you will be an active or a passive investor.  Most investors assume this means making the choice between index funds and active management, but that’s too much…

“The one rule I have is I give very general instructions to my financial advisor, and then I don’t monitor it. I think that’s good, both because it causes more anguish than pleasure, on average, and because you’re tempted to make stupid decisions if you monitor things too closely.” – Daniel Kahneman As Daniel Kahneman…

As Warren Buffett was closing in on age 60 in 1989, his net worth was $3.8 billion according to the Forbes List. This year, as Buffett approaches his mid-80s, he’s worth $58.5 billion. That means nearly 94% of Buffett’s current net worth was created after his 60th birthday. I’ll come back to these facts again…

“At any given moment, what the market is doing reflects how we’re feeling right NOW. Not how we’ll feel tomorrow and most likely not how we’ll feel in a month, let alone a year. Short-term market behavior is rarely about anything other than an interpretation of what we THINK is happening or will happen as…

“Some men think that rules should be made of cast iron; I believe they should be made of rubber, so they can be stretched to fit any particular case and then spring back into shape again. The really important part of a rule is the exception to it.” – Paul Graham Stocks and bonds are…

“Rule number one: most things will prove to be cyclical. Rule number two: some of the greatest opportunities for gain and loss come when people forget rule number one.” – Howard Mark Here’s a breakdown of the S&P 500 sector ETFs ranked from best to worst performance by year over the past decade along with…

“Wealth isn’t primarily determined by investment performance, but by investment behavior.” – Nick Murray I’m convinced that the majority of the behavioral problems that affect most individual and professional investors are all about perspective, not implementing the wrong tactics. There will always be more tactics presented to you every single day, but most of them…

“I tell investors using valuation is a spectrum of future possibilities.  While buying expensive markets generally will produce lower future returns, you will have positive outliers.  The same for cheap markets, it’s usually a good idea but they can always get cheaper.” – Meb Faber Meb Faber posted an interesting chart on his blog a…

One of the biggest worries about the economy these days is the fact that inflation is still relatively low. Fed Chair Janet Yellen said as much this past week: With inflation running at around 1 percent, at this point I think the risk is greater that we should be worried about inflation undershooting our goal…

“Truth be told, if you keep buying high and selling low, you should stay out of the stock market, because you’re losing money. Your primary goal as an investor should be not to lose money.” – Carl Richards In summer of 2009, I sat in on a panel discussion consisting of 3 or 4 portfolio…