“Short-term crashes can be painful, but long-term returns are far more important to wealth creation and destruction.” – Cliff Asness Deep Risk was my favorite of the William Bernstein trilogy of Investing for Adults series of Kindle books. He sets out to show how investors should think about the stock market and then gives a couple of…

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…

“When clients pay attention to noise, we call it dumb. When advisors do it, we call it research.” – Carl Richards Business Insider ran the following graph with data from a recent Oxford University study on the jobs that are most at risk of being replaced by robots in the future: I’ve highlighted 8th occupation…

“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…

“I remember the $0.05 hamburger and a $0.40-per-hour minimum wage, so I’ve seen a tremendous amount of inflation in my lifetime. Did it ruin the investment climate? I think not.” – Charlie Munger

“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…

“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…