When you don’t have an investment process, you can only focus on the outcomes, which are almost purely random. You learn nothing from outcomes. With an effective investment process, you know what stocks to buy, when to buy, and when to sell – and there’s nothing random about the outcome. Throughout my 25 years in …
Investing Without a Process is Nothing More Than Randomness – A Recipe for Disaster Read More »
As a professional investor, the only thing worse than making a bad call is making a great call and not knowing why I did it. That’s odd, you might say, because if I make money with a stock, how could that be bad? In fact, with one particular stock purchase, I made a couple of …
Netflix – The Best and Worst Investment I Ever Made Read More »
Last year Boeing’s shares fell on bad news of its plane crashes, but its fundamentals were weak. This year its shares have fallen another 75%, but this time its fundamentals is the bad news. This is why great companies don’t always make for great investments. As I’ve written in the past, I am not one …
There are many great companies in the S&P 500 but, if you pay more for the stock than what the company is worth, you would be making a bad investment. And, in a market where many of the great companies have reached historically high valuations, the chances of making a bad investment increase substantially. Is …
When a Great Company is not a Great Investment – And How to Know the Difference Read More »
As you go through life, you are always looking for a margin of safety as a cushion against risk and the unexpected. It’s what keeps you out of trouble or protects you from danger. A margin of safety in investing is no different, but it is the key to building wealth. Many of us, once …
When I was still in high school, John Rekenthaler began his career researching the mutual fund industry. I remember reading articles from him many years ago. His long resume brings with it a degree of credibility. Seminal Investing Concept Questioned So, it was with great interest that I read of his attempt in a recent article …