“We have long felt that the only value of stock forecasters is to make fortune-tellers look good.  Even now, Charlie (Munger) and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like…

“The best investors make a habit of putting procedures in place, in advance, that help inhibit the hot reactions of the emotional brain.” – Jason Zweig Neuroeconomics is the study of how we make decisions using brain activity (neuroscience), economics and psychology. Think of it as the behavioral finance of our intuition and reactions. In…

“It may seem counterintuitive, but if you have something in your portfolio that you’re complaining about, it’s a good sign you’ve built a diversified portfolio.” – Carl Richards Common sense reader mailbag: I live in Canada and currently have about 20-25% of my portfolio invested in Canada with the rest spread over other global markets. Do…

“If you understand that the role of fixed income is to be the boring part of your portfolio, then you’re buying short- to intermediate-term bonds and you’re holding on to them. That’s always been the role of fixed income and that’ll always be the role of fixed income.” – Carl Richards Bond investors have had…

“The bad news is that reaching for yield rarely ends well.” – James Montier “Now, if you’re chasing yield, and you’re trying to make your fixed income “do” better, then all bets are off. That’s a dangerous game.” – Carl Richards I’ve been getting a lot of questions lately about peer to peer lending as…

“The key to happiness is low overhead and no debt.” – Lynda Barry Since average credit card rates are much higher than average financial market returns, taking on more debt is an easy route to creating a negative net worth. There are many strategies focused on saving more but not a whole lot gets written…

“That’s just a straight shooter with upper management written all over him.” – Bob Slydell The following is a guest post by someone I go to for advice but wishes to remain anonymous as the AWOCS Mystery Contributor.  It’s a great take on money & happiness using one of my favorite movies from the 1990s….

“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is.” – Warren Buffett “If it makes me feel like I want to throw up, I can be pretty sure it’s a great investment.” – Brian Posner I hate some of the investments in my…

“There’s no trick to being a humorist when you have the whole government working for you.” – Will Rogers Many of us take great joy in pointing out the ineptitude of the government. No matter which way you lean politically, you probably wouldn’t get too many arguments if you were to claim that the government…

“Instead of concentrating on the central issue of creating sensible long-term asset-allocation targets, investors too frequently focus on the unproductive diversions of security selection and market timing.” – David Swensen “One of the things you learn about asset allocation is that the unemotional defeat the emotional over time by fading their highs and lows, their…