Why do we feel pain in investing? Is it good or bad? And how can we cope? | Continue reading
I was shocked. A friend e-mailed me the news that a well-known growth manager had shut down. I didn’t believe him. Just last summer I heard that manager self-promoting on the podcast circuit, trying to impress the audience with how sophisticated of a business-picker he was. | Continue reading
Yes, you are living through a bubble in the financial markets. No, this is not an article about how to time the market. No, you don’t know when the bubble will burst (and neither do I). Yes, there are still things that you can do that will set you up for investing success. | Continue reading
The 2021 World Chess Championship was expected to be a hard-fought battle. The challenger, Ian Nepomniachtchi (affectionately known as Nepo in the chess world) from Russia, was taking on the reigning world champion, Magnus Carlsen, from Norway. While Carlsen is the number one ran … | Continue reading
I was watching our stock prices drift down, day by day. The market value of our portfolio slowly decline. No fundamental news. Just a steady drip-drip-drip of lower stock market prices. | Continue reading
If you really want to know what Warren Buffett thinks, look past his polite answers at the 2021 Berkshire Hathaway annual meeting and instead look at his actions. | Continue reading
Warren Buffett is the world’s most successful investor. Yet, even the best make mistakes, as any good investor knows. Analyzing Warren Buffett’s mistakes in depth can make you a better investor. In the just-released 2020 Berkshire Hathaway annual letter, Buffett briefly tells us … | Continue reading
Charlie Munger answered questions for two hours today at the 2021 Daily Journal Annual Meeting. The topics ranged from the current investing environment to worldly wisdom, and there was something to learn for everyone. | Continue reading
Too many CEOs don't understand capital allocation. They rose up through the sales or operations ranks, and now that they are at the top they have to wing it with respect to one of the most important aspects of running the business. Don’t get me wrong – there are some amazing capi … | Continue reading
Your money is unlikely to last you as long as most savings withdrawal calculators will tell you. That famous 4% withdrawal rule? Not so fast, especially not in the current environment. Before you entrust your retirement to some over-simplified rule of thumb, you should understand … | Continue reading
Long-term investing doesn’t happen by accident. You need to be prepared. There are three things that can allow you to use market volatility to your advantage: the right structure, a long-term investment process and a behavioral checklist to allow you to remain rational when every … | Continue reading
Optimism abounds in the capital markets. They are full of people who either 1) have an interest in selling you on the prospects of a security or 2) are genuinely optimistic about a company’s future but hold a biased perspective. It is helpful to have a checklist to make sure tha … | Continue reading
Behavioral biases affect decisions more often than one might think. Behavioral defense involves making sure you are aware of any such biases affecting your thinking and correcting for them whenever possible. This article will focus on helping you make better decisions through t … | Continue reading
Before becoming Chairman and CEO of Berkshire Hathaway, Warren Buffett built an amazing track record compounding capital in a small partnership in the 1950s and 1960s. Chances are you would not have invested with him: his partnership did not appear conventional and he did not inv … | Continue reading