The stock market has been on a real roller coaster ride since the beginning of the year. After falling well into correction territory, it has bounced back recently. At one point, just as the Ukraine war was heating up, our portfolio was down 11%. As of the end of March, it was down less than …
“Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.” Warren Buffett I’m reasonably certain Warren Buffett did not intend to disparage anyone with that quote. We’re taught at an early age “never to put all your eggs in one basket” because it makes perfect sense for …
For Thoughtful Investors, Diversification Doesn’t Make Sense Read More »
The one thing many top-performing companies have in common is they are shareholder-friendly. That stands to reason because it’s always a mutually beneficial relationship. The boards of directors and senior management of these companies look out for their shareholders’ interests, often choosing to return profits to shareholders in the form of cash dividends, stock buybacks, …
Why You Should Only Invest in Shareholder-Friendly Companies Read More »
Here we are, less than 50 days into the Biden administration, and the stock market is up more than 20% since election day. Should we be surprised? What about all the doomsday predictions about the new administration’s policies tanking the economy? As expected, the new, democratically controlled Congress is proposing a COVID relief package that …
Should Investors Care about Who Is in the White House? Read More »
After more than 25 years in investment management, I am still amazed at the speed and efficiency by which the stock market operates, with the instantaneous unification of supply and demand and the resulting equilibrium pricing. However, as I wrote in my book, Taking Stock, this seemingly efficient market increasingly goes through such intense highs and …
Now and then, I get caught up in a conversation about options and why I don’t utilize them in my investment strategies. First off, I love these conversations because they exemplify the greatness of our capitalistic, free-market system that enables everyone to use any number of financial tools to pursue profits. Second, I don’t utilize …
Can You Buy Insurance Against Stock Market Declines? Read More »