The median tenure of public company CEOs is about five years . 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
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
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?
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
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
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
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
As I explained in my previous post on dry powder, I have cash that only gets deployed when stocks go down by a certain amount. How much cash to deploy and when? From the same post, you can see the rulebook I follow. If stocks follow historical … [Read More...] about Revisiting my dry powder strategy
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?
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?
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!
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?
As I have written multiple times in prior posts, our gut instincts, friends’ views, media reports, and most expert opinions are really not that useful when it comes to investing. We, investors, consistently underperform even the ordinary index funds … [Read More...] about Be mechanical about your investing approach
I realize that this sounds silly. Individual investors and university endowments don’t play in the same league! Still there is no harm in studying other investors’ portfolios. Even those that are managed professionally. For perspective, current … [Read More...] about Benchmarking my portfolio against Yale’s endowment
Elon Musk, Tesla’s CEO, said last month that economic moats are lame: “If your only defense against invading armies is a moat, you will not last long. What matters is the pace of innovation. That is the fundamental determinant of … [Read More...] about Are moats really lame?
If you were following business news in 2010, you must have come across one or two headlines bemoaning America’s “lost decade”. Between 2009 and 2012, there were many discussions in the business media and many columns were written in the press on this … [Read More...] about Revisiting the lost decade of U.S. stocks