I’m often asked what I mean by the words “More Thoughtful Investing” that encircle my logo on TedKerr.com, which is great because it’s a conversation worth having for anyone who aims on becoming a serious investor. At a high level, I use the term to differentiate between investing and speculating. Speculating, as most people know, is …
You’ve probably watched this scene play out before. Two friends talking at a backyard barbecue, and one excitedly mentions to the other he just bought a stock that is expected to be the next Netflix. “But my investment advisor says you need to get in now or you’ll miss the opportunity,” warns the friend. Not …
Does the Fear of Missing Out Control Your Investment Decisions? Read More »
As I discussed in a recent post, intangible assets are becoming increasingly important to the growth, profitability, and value of companies. Yet, because they are difficult to track and value, companies rich in intangible assets that create significant value typically understate their profitability and valuation due to archaic GAAP accounting standards. As I concluded in …
The Right Way to View a Company’s Intangible Assets Read More »
Although the stock market continues to ride the crest of recent highs, many investors are still reeling from the dramatic events from earlier in the year. If they were fortunate (and disciplined) enough to ride out the storm, they might still be a little shell-shocked, but their portfolios are no worse for the wear. Yet, …
Focusing on Paper Losses Ignores Real Investing Risks Read More »
There is a story about Warren Buffett finding a penny on an elevator. He was riding the elevator up to his office with several executives. On the floor was a shiny penny, but no one seemed to take notice. But, when Buffett reached his floor, and the elevator doors opened, he reached down to pick …
The Power of Compounding versus the High Cost of Waiting Read More »
Some of the best investment decisions an investment manager can make is choosing not to buy a particular stock. Those decisions probably do more to improve long-term performance than any investment decision we make. As I indicated in my last blog post, I’ve made hundreds, maybe even thousands of decisions over my 25 years as …
When Decisions Not to Buy Can be as Profitable as Decisions to Buy Read More »