A couple of weeks ago I was at our local library checking out the Barron’s weekly. They had their annual roundtable issue out. Every year in January, Barron’s invites a few successful well-known money managers to gather around a table and discuss … [Read More...] about Weekend worrying about the economy
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Market neutral investing
Last week, John Rekenthaler of Morningstar wrote an article on worst alternative investments of the decade. Market-neutral funds were among his top-five worst investments. Average annual return from the funds in this category was 0%. He wrote this, … [Read More...] about Market neutral investing
What if I had invested near the stock market peak?
Last week, I shared results of my 10-year investing experience with a broad market index fund: My 10-year odyssey with a Schwab index fund. This post follows up on that theme by simulating several related scenarios. None of them I experienced myself … [Read More...] about What if I had invested near the stock market peak?
My 10-year odyssey with a Schwab index fund
Investing can be quite boring – especially if one is following a long-term plan. From my experience, people who do it best are those who put their investing on an auto-pilot. And let their money compound over time. For 10, 20, even 30 years or more. … [Read More...] about My 10-year odyssey with a Schwab index fund
CEOs who take pay cuts
Most CEOs make token statements about taking care of shareholders. Some mean it, others don’t. We investors don’t have a good way to judge them. We are not privy to discussions in boardrooms or corner offices. We can’t read their minds either. We … [Read More...] about CEOs who take pay cuts
My lucky break with Roth IRA
This was the year 2000 -- at the height of the Internet craze. I had two years of cash contributions ($2K max was allowed at the time) piled up in my Roth IRA. So, in March 2000, I bought $4K worth of Amazon shares (at about $70 per share) in my … [Read More...] about My lucky break with Roth IRA
Investing amid volatility: My 4Q update
What a quarter that was! The US stock market first reached a new high in October and then dropped 10%. It bounced around for a while. And then in late December, it dropped again -- this time more than 15% off its peak. By some measures, it actually … [Read More...] about Investing amid volatility: My 4Q update
How am I investing in commercial real-estate?
RealtyShare, a crowdfunded real-estate investing operation, just shut down its business a few weeks ago. Hopefully, everyone who invested through them will be fine. The company said they will keep skeleton staff to manage existing properties for … [Read More...] about How am I investing in commercial real-estate?
How I keep my long-term investing outlook?
During the holidays, I had some idle time and I re-read parts of Jason Zweig’s 2007 book, Your Money & Your Brain. It’s a good book with lots of interesting anecdotes. It was also one of my early reads into investor psychology. In one section … [Read More...] about How I keep my long-term investing outlook?
Anchor on a business’s value, not its price
The other day, I came across an interesting, albeit hypothetical, auction scenario: Ten companies were bidding for the right to drill in a land tract. Each had done a geological survey of the land and privately assessed how much oil is in there. … [Read More...] about Anchor on a business’s value, not its price
Volatility is good for my investments
People fear double-digit stock market declines. I see them as opportunities. The US stock market has been more volatile lately. And my portfolio is better off because of this volatility. I just finished reading Nassim Taleb’s book Antifragile. He … [Read More...] about Volatility is good for my investments
Why that market crash didn’t happen?
Last year in November I wrote a blog post (Why I Stay Invested in Stocks?) about some investors (they were my friends) who were convinced that a market crash was imminent, and they were waiting on sidelines with cash to invest. Well, this is nearly … [Read More...] about Why that market crash didn’t happen?
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Grading CEOs as capital allocators
If there are just two questions to ask about a CEO, ask these: Does he run the business well? Is she good in utilizing shareholders’ capital? The first question requires no explanation -- this is obviously any CEO’s number one task. The second … [Read More...] about Grading CEOs as capital allocators
My investments with founder CEOs
The median tenure of public company CEOs is about five years [1]. They come and go. Many of them are paid handsomely to run a company – in either cash or stocks that vest in 3 to 4 years. They’d own some shares while they work for the … [Read More...] about My investments with founder CEOs
There is never a bad time to start investing
Is this the right time to invest in the stock market? The answer is yes – it’s always a ‘yes’. And I am not being facetious! The best time to invest in stocks is … when you have money to invest. Of course, some cash saving is required for … [Read More...] about There is never a bad time to start investing
Are you prepared for stock market winter?
This is not a panic post. I don’t know when the next market downturn would happen. I don’t care to know either. My investing is not based on predicting future events. As Howard Marks wrote once, "taking bold actions based on forecasts of things that … [Read More...] about Are you prepared for stock market winter?
Why does the stock market mock us?
Sometimes it feels like the stock market is mocking us -- intentionally doing the unexpected. When we invest new money, the stock market promptly falls as if it's punishing us. Other times, it jumps up after we had sold some shares. If you are an … [Read More...] about Why does the stock market mock us?
Don’t take investing advice from people you don’t know!
It was some time in 2011 if I remember correctly. I had tuned to my local NPR station at lunch time. A financial advisor couple was getting interviewed. They had just released a new book on financial planning. It was a pleasant discussion. They … [Read More...] about Don’t take investing advice from people you don’t know!
When do I exit stock positions?
In July 1999, Warren Buffett gave a speech to business leaders in Sun Valley, Idaho. Back then, the U.S. stock market had been on a tear. Understandably, many attendees were very optimistic about their businesses’ prospects. Undaunted though, Buffett … [Read More...] about When do I exit stock positions?
Mid-year portfolio update 2018
Since my last quarterly update, there haven’t been many changes in my portfolio. Stocks have been on the rise since April this year -- making up for the losses in the first quarter. Looking further back, if I compare today’s asset allocation with … [Read More...] about Mid-year portfolio update 2018