Warren Buffett and Charlie Munger have famously said that you should not diversify. They have also said that diversification should be called di-worse-ification. Other people have said they didn’t mean it. Well, they kind of did. The Right Way To Think Of Diversification You should diversify to prevent “actual loss” rather than “market loss”. Actual… Read More »
Here is why you don’t want to generally save cash to deal with a turbulent market. Or at least ideas you should consider as you decide what to do with your savings and investments. Your general return on cash Cash is probably making around 4% in a really good savings account. Which ain’t much. Inflation… Read More »
A successful invester, as opposed to a trader, does two things well: he identifies a good company from the thousands of companies available, and he chooses the right time to buy and sell. Sounds easy enough doesn’t it? But the ultimate result of this process is very few trades and a lot of patience. Or… Read More »
I am not a “trader”, I am an “investor” so typically I buy and hold individual stocks. Let’s say though that I invest in QQQ (Nasdaq 100) and over 10 years it averages 18% per year. If I invest in another ETF that also averages 18%, what is my total return? 18%. Why? Because ta… Read More »
So the market is up a bunch in the past year, what should you do? Here are my answers: You are retired and drawing upon your savings You should probably already have a balanced portfolio that can weather ups and downs. Not too much in bonds, not too much in stocks, but not so little… Read More »
Covid. The Election transition. Christmas. The market sure hates uncertainty, and the virus is getting worse. It will probably continue until we have a good vaccine in enough volume. The election transition looks like it’ll play out until January 20. Hopefully not. With the downturn this year, Christmas shopping season is less than certain. And… Read More »
Let’s start with a little financial market review this week: Tesla Shares Surpass $1,000 On Semi Truck Production Memo – Tech Crunch Restaurants Parse Extensive And Conflicting Guidance As They Reopen – WSJ $410 Million Mega Millions Winning Ticket Sold In Arizona – USA Today Jim Cramer: The lesson from Wall Street’s biggest sell-off since… Read More »
I wonder. If I buy gold today, what do I have in 20 years? In theory, gold is a store of value. It should not be an investment. Sometimes it is. How? Gold at times is unloved. This is when the price of gold goes down below what it really should be. Then it is… Read More »
You own stock in 10 companies that you know very well (or should). Do you buy each in equal dollar amounts? What if you know, really know, based on its financials or some other logical factor that one company stands the best chance of growing quickly? Is there anything so wrong with making it 15%… Read More »