One of the biggest risks to investors’ net worth is the portfolio decisions they make. Failing to adhere to an appropriate long-term strategy has a significant damaging impact on wealth. Since wealth is generated from the compounding of returns, actions that severely reduce an investor’s portfolio balance can have a long-term […]
Most corrections do not become crashes, and (here’s the key…) every single one of them turned out to have been great buying opportunities in the fullness of time. In fact corrections are nothing more than a pause between the market’s long steady upward moves. The distinction between volatility and risk is at the […]
The Best Way to Learn as an Investor If it were up to me, I would replace every book called How to Invest Like Warren Buffett with a one called How to Not Invest Like Lehman Brothers, Long-Term Capital Management, and Jesse Livermore. There are so many lessons to learn from these failed investors about […]
We Focus on the USA, Europe, China and Japan Despite the early wobbles during January 2014, global equity markets had largely recovered all lost ground by the end of February and as of this writing are somewhat ahead of where they were at the start of the year. Heightened concerns about […]
Words of Advice for the Grandchildren Dear Jade (or Morgan or Ray or Charles), You decided to open this letter hoping to get some ideas about investing that you’ll find useful and helpful. Naturally, in writing up these ideas for you, that’s my hope too. So in writing this letter, my […]